United Airlines Stock Climbs on International Expansion

Shares of United Airlines Holdings Inc (NASDAQ:UAL) are up 2.5% at $116.37 this morning, after the company announced a major expansion of its international network. Beginning in March 2027, United will add 10 new international destinations and three additional routes, while also resuming service between San Francisco and Tel Aviv. The airline said it will be the only U.S. carrier offering nonstop flights to eight of the 10 new cities.

Today's pop has United Airlines stock looking to extend its recent bounce off the $111 level, which provided support in late July as well. Year to date, the equity is up roughly 3%. 

Short sellers have been building their positions. Short interest rose 7.8% during the most recent reporting period, and the 23.51 million shares sold short now account for 7.3% of the stock's available float. At UAL's average pace of trading, it would take nearly five days for shorts to cover their bearish bets.

Analysts, meanwhile, remain overwhelmingly bullish. Of the 25 brokerages covering United Airlines stock, 23 carry a "buy" or better rating, compared to just two "hold" recommendations.

Options traders have taken a more pessimistic stance. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), UAL's 50-day put/call volume ratio of 1.12 ranks in the 100th percentile of its annual range. In other words, puts have been picked up over calls at a faster-than-usual clip during the past 10 weeks.