Seeking Alpha

United Continental facing challenges

  • United Continental (UAL) is still facing a series of challenges nearly four years after the deal between United and Continental closed in October 2010. The company faces an outdated fleet, slipping customer satisfaction and unmatched losses compared to its rivals.
  • The company experienced a terrible 2012, after losing a total $723M. Last year, the airline came back with $571M in earnings, but declined again during the first quarter of this year posting a $609M loss.
  • Analysts still expect United Continental to report a profit for the current quarter and year, and many have assigned a "buy" rating. The company's stock did climb 28% this year, although it is still has underperformed compared to it's rivals. Delta's (DAL) share price jumped 55% this year, while American Airlines (AAL) stock has climbed 77%.
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Comments (2)
  • Pony01
    , contributor
    Comments (292) | Send Message
     
    Leadership is key in the airline industry. UAL has minor league management. A change is necessary to put them in the big leagues. Not a bureaucratic change, but a culling of all top management; maybe sparing Rainey. Those hired to replace must have airline experience. Running a successful airline is much different than running a paper conglomerate, bank, you pick the industry. I don't say this lightly. No golden parachutes either.
    9 Jun 2014, 04:45 PM Reply Like
  • ChuckKrew
    , contributor
    Comments (74) | Send Message
     
    "No golden parachutes either."

     

    Good luck with that.
    9 Jun 2014, 11:28 PM Reply Like
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