Why United Airlines Stock Was Grounded This Week
United Airlines Holdings (NASDAQ: UAL) went on a shopping spree this week, and some on Wall Street are worried about how the airline will pay its bills. Shares of United traded down more than 10% this week, according to data provided by S&P Global Market Intelligence, after the carrier announced the largest wide-body order in U.S. aviation history.
The pandemic was difficult on the airline industry, but United and its rivals have seen demand come roaring back this year as vacationers try to make up for lost time and business travel slowly resumes. United CEO Scott Kirby has gone so far to suggest the post-pandemic world, with more work flexibility, could be a boon to the carriers, allowing for more travel during what has traditionally been down times for the industry.
United has one of the oldest fleets in the business, but the airline is taking steps to change that. This week, the company placed an order for 100 Boeing 787 Dreamliners, with options for 100 more. At list price, that order is worth around $35 billion.
Source Fool.com
