United expands SFO flights, adds unique global destinations

SAN FRANCISCO - United Airlines (UAL), currently valued at $23.36 billion in market capitalization, has announced an increase in its flight operations at San Francisco International Airport (SFO), with plans to offer around 300 daily flights this summer, marking the highest number since 2019 and surpassing other airlines in the Bay Area. This expansion is a part of United’s long-term strategy to reinforce SFO as a major domestic and international gateway. According to InvestingPro analysis, the airline appears undervalued based on its Fair Value calculations, with strong financial health metrics and a favorable P/E ratio of 7.38.

The airline, which currently serves 111 cities globally from SFO, will enhance its flight capacity by 20 percent in 2025 compared to the previous year. With current annual revenue of $57.06 billion and a healthy revenue growth rate of 6.23%, United’s expansion strategy appears well-supported by its financial performance. The expansion includes 11 new international and nine new domestic destinations added over the last four years, with upcoming flights to San Jose, Costa Rica, and Panama City, Panama. InvestingPro subscribers can access 12+ additional exclusive insights about United’s growth prospects and financial health metrics.

United CEO Scott Kirby highlighted the airline’s ambitious network strategy as a key factor in its growth at SFO, which has differentiated it from competitors and established it as the world’s largest airline in terms of available seat miles and fleet size.

A significant $2.6 billion construction project is currently in progress to modernize and extend Terminal 3 at SFO, which will support United’s future growth and enhance customer experience. United also plays a significant role in the local economy as one of the Bay Area’s largest employers, with over 13,000 team members and plans to hire 1,200 more in 2025.

San Francisco Mayor Daniel Lurie expressed that United’s expansion underscores the city’s attractiveness as a global destination and will contribute to economic growth and job creation.

United’s SFO hub serves as the West Coast’s leading global gateway, with the airline adding more direct flights to Asia, Europe, and Latin America in recent years. Notably, United will be the only U.S. carrier to offer direct flights to Bangkok, Thailand, and Ho Chi Minh City, Vietnam, via Hong Kong, as well as new seasonal service to Adelaide, Australia, and a second daily flight to Manila, Philippines, starting this winter.

The airline’s domestic offerings from SFO are also unparalleled in California, with the most flights to the top five domestic destinations and exclusive daily year-round service to four Hawaiian Islands.

United’s commitment to innovation is evident in its collaborations with technology partners, such as offering Starlink Wi-Fi service and developing the first commercial electric air taxi service with Archer.

This growth and innovation align with United’s vision of leading the way in the airline industry, as reflected in its ongoing investments in technology and customer experience enhancements. The company’s strong EBITDA of $8.09 billion and robust free cash flow yield demonstrate its financial capacity to sustain these investments. For detailed analysis and comprehensive insights about United Airlines’ financial outlook, investors can access the full Pro Research Report available on InvestingPro, which provides in-depth coverage of the company’s performance metrics and growth potential.

The information for this article is based on a press release statement from United Airlines.

In other recent news, Allegiant Travel Company received a rating upgrade from Raymond James, with the firm elevating the airline’s stock from Outperform to Strong Buy. However, the price target was simultaneously reduced to $90, reflecting lowered earnings expectations amid macroeconomic uncertainty. United Airlines has also been in the spotlight, having received approval from the Federal Aviation Administration for its first Starlink-equipped Embraer 175 aircraft. United plans to install this technology on approximately 40 regional jets each month, aiming to complete the installation on its entire fleet by the end of the year.

UBS has adjusted its outlook on United Continental Holdings, lowering the price target to $107 while maintaining a Buy rating. This revision comes in light of weaker first-quarter trends and ongoing consumer softness, which have led to a 12% reduction in the 2025 earnings per share estimate for United Continental. In related developments, Delta Air Lines announced a reduction in its revenue and profit forecasts, triggering a decline in shares of major U.S. airlines, including United Airlines. The revised guidance from Delta is attributed to decreased consumer and corporate confidence, impacting domestic demand.

Despite these challenges, United Airlines is focused on enhancing in-flight connectivity through its collaboration with Starlink, marking a significant step in improving passenger experience. Meanwhile, the airline industry is navigating a period of softer consumer demand, with analysts and investors closely watching upcoming earnings reports to assess the broader impact.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.