United Airlines Adds Routes to Latin America, Shares Up

United Airlines – the wholly owned subsidiary of United Continental Holdings, Inc. (UAL) has launched a route in a bid to expand further and improve customer convenience. Subsequent to the newly launched service, the company is now operating daily flights from the intercontinental airport at Houston to the Chilean capital of Santiago.

The news seems to have pleased investors as shares of the company gained over 2% to close the Dec 5 trading session at $63.03.

The Santiago-bound flight, scheduled to depart from Houston at 9.35 p.m., will take a little over 12 hours. The Boeing Company’s (BA) 214 seater 767-300 aircraft is being used for the new service. The service, which marks the only nonstop connection between Houston and Santiago, is also aimed at improving the customer’s flying experience. Each flier will get access to special in-seat entertainment on request.

Other New Routes

United Airlines plans to introduce several other Latin American and Caribbean bound flights. The carrier has already started operating non stop flights from Denver to Panama City from Dec 3. In line with its objective to expand further, United Airlines is looking to introduce flights (every Saturday) between Chicago and Belize City and from Houston to Punta Cana, Dominican Republic. The new services will flag off from Dec 20, 2014.

We are optimistic about the carrier’s decision to increase its scale of operations by aiming at newer skies. This is encouraging, especially given that the company, like many of its peers, is benefiting from soft oil prices.

Zacks Rank

United Continental currently holds a Zacks Rank #2 (Buy). Other stocks that warrant a look in the airline space include Southwest Airlines Co. (LUV) and Alaska Air Group, Inc. (ALK). Both sport a Zacks Rank #1 (Strong Buy).

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