Airfares Are Up 25.5% and United Says It’s Set To Increase More.
Is UAL the Only Cheap Airline Stock Left?
Quick Read – UAL trades at a forward P/E of 11 versus DAL’s 13, lagging Delta by 18 points year to date despite U.S. fares rising 25%. – AAL carries $35 billion in debt and negative equity, making its low share price a distressed bet on normalization rather than a quality bargain. – U.S. airline fares rose 25.5% year over year in July, and United Airlines CEO Scott Kirby has told Reuters he expects further gradual increases in the first half of 2027 if demand holds. The market has not treated United Airlines Holdings (NASDAQ:UAL) like a beneficiary. Shares closed at $114.83 on August 26, up only 2.69% year to date, while Delta Air Lines (NYSE:DAL) has climbed 20.64%.
The premise of this article is whether United is the last genuinely cheap major airline. Fare Story Belongs to the Industry, Not Just United The 25.5% figure describes fares across U.S. carriers, not United’s own ticket prices. Kirby has framed the increase as a structural catch-up because airport fees have risen roughly 60% since COVID and maintenance costs are “off the charts.” He told investors that “airfares are down still 13% in real terms compared to where they were in 2019,” which is the frame he uses to argue current pricing is durable.