Chicago, Ill.-based United Continental is an airline carrier, operating under its subsidiaries United Air Lines and Continental Airlines.
The company transports people and cargo through its mainline operations, and has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express.
Insight from TheStreet's Research Team:
Although crude oil has declined some 40% from last year's highs, airlines' stocks have been falling as of late. The last time we saw this much pressure on the airlines was last fall, when it was thought Ebola was rampant and would cause everyone to stop flying. Stocks dropped 30% to 40% on this news, but they roared back when oil declined and the economy showed signs of life.
However, the strong move up ended in January, and most carriers cannot seem to get out of their own way. Whatever the reason -- be it a slower economy, lower load factors or others -- the effects seem to be a hindering this important economic group. The charts do not lie.
United Continental (UAL:NYSE) shows some major distribution since price started cascading in early February. Recent earnings were disappointing and the market responded in a big way with the stock getting rocked in May.