We recently published 10 Stocks on Euphoria. Are You Holding Any? United Airlines Holdings Inc. (NASDAQ:UAL) is one of the best-performing stocks on Tuesday.
United Airlines extended its rally to a third consecutive day on Tuesday, jumping 10.23 percent to close at $98.47 apiece as investors gobbled up shares following the July inflation report that saw cheaper gas prices and higher airfares.
According to the Labor Department, airfares rose by 4 percent last month following a 0.1 percent decline in June. Meanwhile, gas prices dropped by 1.9 percent and are now lower by 9 percent year-on-year.
The twin news sparked optimism among investors that both factors would bolster revenues for the company at least in the third quarter of the year.
In the second quarter, United Airlines Holdings Inc. (NASDAQ:UAL) earned $973 million, lower by 23 percent than the $1.3 billion in the same period last year. Total operating revenues inched up by 1.7 percent to $15.2 billion from $14.98 billion year-on-year.
Notably, it saw fuel prices decline by 11.4 percent to $2.77 billion during the period from $3.13 billion year-on-year. Fuel prices mark the company’s second largest expense so far.
Additionally, United Airlines Holdings Inc. (NASDAQ:UAL) said over the past few weeks that it saw a pickup in travel bookings, a trend that, if sustained, could push it to raise its full-year profit outlook.
Photo by Toa heftiba on Unsplash
“Demand feels to us like it has inflected upward and is returning toward the normal trend line,” CEO Scott Kirby told analysts during the earnings call last month.
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