United Airlines shares went up early Tuesday after the company announced its biggest international expansion ever. United will add 10 new international cities to its summer 2027 schedule, aiming to take advantage of strong demand for international travel.
The stock rose about 1.8% soon after the market opened, which was a positive change after a sharp drop since early July.
Delta Air Lines and American Airlines stocks also went up in early trading. This suggests that lower oil prices could be helping the whole airline sector. Brent crude futures dropped more than 2% early Tuesday.
Airline stocks have struggled in the second half of the year. A major airline sector fund has dropped by double digits since July, and Delta and American have lost even more. These losses mostly followed a big increase in oil prices during the quarter.
Oil prices will probably keep affecting airline stocks in the short term, but United’s international expansion shows its focus on long-term growth. International revenue has been especially strong for United, rising 11% to $6.6 billion in the second quarter. It now makes up 41% of total passenger revenue, much higher than before the pandemic in 2019.
As part of the expansion, United will add nonstop flights to Okinawa in Japan, Toulouse and Marseille in France, and Luxembourg City. The airline also announced new routes to Ibiza and Valencia in Spain, Terceira in Portugal, Ljubljana in Slovenia, and two Italian islands: Olbia in Sardinia and Catania in Sicily.
