Shares of United Airlines Holdings Inc (UAL) declined 3.1% to $112.71 during Wednesday's session, as a broad selloff hit airline stocks amid rising crude oil prices. The stock opened at $117.50, reached an intraday high of $118.80, and dipped to a low of $112.50.
Fuel Costs Weigh on Sector
The airline group underperformed as Brent crude futures rose 1.8% to $70.02 per barrel, while U.S. crude gained 1.9% to $65.17. Fuel represents one of the largest operating expenses for carriers, and swift increases in oil prices often trigger immediate selling pressure as traders reassess cost projections.
Other major airlines also traded lower. Delta Air Lines (DAL) dropped 4.6%, American Airlines (AAL) sank 5.9%, and Southwest Airlines (LUV) slipped 4.4%. The U.S. Global Jets ETF (JETS) finished down 3.4%.
Partnership Launch Overshadowed
The market reaction came despite the operational launch of a new cross-selling initiative between United and JetBlue Airways (JBLU). As part of their "Blue Sky" collaboration, travelers can now book eligible flights on either airline's website or app using cash, points, or miles.
United's Chief Commercial Officer Andrew Nocella stated the move offers "more choice, flexibility and a better overall booking experience." JetBlue President Marty St. George called it "an important step forward." The partnership is expected to expand to include joint itineraries and reciprocal benefits, with JetBlue planning to provide United access to up to seven daily roundtrips from JFK's future Terminal 6 in 2027.
Investors are now focused on whether the partnership will drive meaningful additional bookings and customer retention, particularly among premium travelers. Many are awaiting clearer traffic and revenue data before assessing the initiative's financial impact.
Attention turns to February 18, when United CFO Mike Leskinen is scheduled to speak at the Barclays Industrial Select Conference, potentially providing further commentary on cost pressures and the partnership's early performance.
