NEW YORK (TheStreet) -- Shares of United Continental Holdings Inc. (UAL) are up 2.16% to $47.38 after the airline said it will reward its big spending customers and not bargain hunting travelers who accumulate miles with long distance getaways, the Associated Press reports.
United is following other U.S. airlines that have begun basing awards on money spent, not miles flown. The changes would mostly benefit people who fly at least 25,000 miles a year on United, the AP noted.
TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED CONTINENTAL HLDGS INC (UAL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: