United Airlines Holdings, Inc. (NASDAQ: UAL) Stock Analysis: Jefferies Maintains Buy Rating Amidst Fuel Cost Challenges

• Jefferies maintained a Buy rating for United Airlines Holdings, Inc. (NASDAQ: UAL) but lowered its price target to $155 from $160 due to anticipated fuel costs.
• UAL reported strong Q2 performance with revenue growing 16% to a record $17.7 billion and adjusted EPS of $1.99, beating analyst estimates.
• Management expects to recover 80% to 90% of nearly $6 billion in additional fuel costs by Q3, aiming for full recovery by Q4 and mid-teen pretax margins.

United Airlines Holdings, Inc. (NASDAQ: UAL) is a major global airline that provides air transportation for passengers and cargo. On July 19, 2026, the analyst firm Jefferies maintained its Buy rating for UAL. At the time of the announcement, the stock was trading at a price of $115.41 per share.

Despite the positive rating, Jefferies lowered its price target for the company to $155 from a previous target of $160. This adjustment reflects some challenges, as UAL anticipates nearly $6 billion in additional fuel costs for 2026. Its third-quarter earnings guidance of $2.50 to $3.50 per share also fell below analyst expectations.

The Buy rating is supported by UAL's strong second-quarter financial performance. The airline’s revenue grew by 16% year-over-year to a record $17.7 billion. This was driven by a 12.1% increase in total revenue per available seat mile (TRASM), a key metric that measures how much revenue an airline makes per seat flown one mile.

UAL also reported adjusted earnings per share (EPS) of $1.99 for the second quarter, beating analyst estimates by 3.7%. EPS shows a company's profit per outstanding share of stock. Following these strong results, UAL raised its full-year 2026 adjusted EPS outlook to a range between $9 and $11.

As highlighted by Seeking Alpha, the airline is actively managing its high fuel expenses. Management expects to recover 80% to 90% of these cost increases by the third quarter. A full recovery is projected by the fourth quarter, which is expected to support the company's goal of achieving mid-teen pretax margins in the future.