United Airlines Stock is currently trending in the market after the Airlines giant announced commencement of free coronavirus rapid testing for passengers.
United Airlines Holding Inc. has become the talk of the stock town after it announced this enticing offer to increase customers amidst the ongoing pandemic. The official statement issued by the Airlines company reads that from the 16th of November, UAL is to offer rapid Covid-19 tests to all its passengers over the age of 2 for a select number of flights. This service is to come free of any charges and any passenger who has issues with getting tested will be placed separately in a different flight to guarantee that the tested flights are completely safe.
This offer is an expanded version of a similar offer proposed by the company earlier.
United Airlines Stock: Buy Or Not?
On a different note, UAL made a deal with its current staff, especially pilots to avoid a massive furlough of about 4000 pilots. In simple words, the pilots will have less flight time, so they will receive reduced payment but they will not be laid off till 2021 June at the least.
Scott Kirby, UAL CEO announces that the pandemic has taken a heavy toll on United Airlines stock. The effect of this will continue to surface till the next year at least. He further expects that the company will only be 45% of what it used to be in 2021 even with the prospect of gradual restart of flight travel. The company CEO explicitly states that things will not return to normalcy without a vaccine for Covid-19.
Recent stats on United Airlines stock clarifies that the company lost about $1.8 billion in revenue during 2020 Quarter 3. This was majorly because of the pandemic and the complete ban on air travel. The Airlines Industry suffered a huge blow with a complete stop on revenue since the beginning of 2020. On the contrary, the company had made a gain of $1 billion during the corresponding quarter in 2019.
United Airlines Stock Down To 11th Position From 5th
Expert analysts are of the opinion that United Airlines stocks will rebound once the pandemic situation relaxes. However, investors are still shaken with uncertainty regarding UAL stocks.
According to current metrics, UAL stocks are suffering from a 62% plunge in 2020. It is trading below the 200SMA (Simple Moving Average) currently. Investors are waiting for United Airlines stock to regain the 50SMA before digging into it.
United Airlines stock traded with a cup-with-a-handle pattern in July 2019. However, this breakout seized from January 2020 as UAL stocks began going sideways. But after this period, the pandemic hit the industry and the stocks dipped massively. United Airlines stock is ranked 11 out of 22 stocks currently. This is down from a previous ranking of 5 during 2019 September.