Here's Why Investors Should Give United Airlines Stock a Miss Now

Core Insights - United Airlines (UAL) is facing high operating expenses and weak liquidity, negatively impacting its financial outlook and attractiveness to investors [1] Financial Performance - UAL's earnings estimates have been revised downward by 8.97% for 2025 and 5.03% for 2026 over the past 60 days, indicating a lack of confidence from brokers [2][4] - In Q1, UAL's total operating expenses increased by 1.3% year over year to $12.6 billion, driven by higher labor and landing fee costs [4][6] - Labor costs, which account for 33% of total operating expenses, rose by 5.7% year over year, while landing fees and other rent increased by 8.6% year over year [7] Liquidity Concerns - UAL's current ratio stands at 0.78, suggesting liquidity issues as it indicates insufficient cash to meet short-term obligations [4][6][7] Stock Performance - UAL's share price has declined by 24.2% year to date, compared to a 10.7% drop in the Transportation - Airline industry [3]