UALAQ: The United Airlines Stock Symbol

It’s a little long, it’s a little complex, but there it is: the United Airlines stock symbol is UALAQ, though most people assume it’s UAL. Whether it’s of any value to know this is questionable. United Airlines is in real financial trouble. It’s been in bankruptcy for well over two years and may remain there longer. Despite a rather late response to market trends with its launch of Ted, a budget subdivision of United, United Airlines is still seeing more losses than gains in the market. But the news isn’t all bad. United Airlines is taking steps toward retaining loyal customers and encouraging its fliers to ride frequently with their airline rather than hop from airline to airline. And once they do emerge from bankruptcy, they may be in better financial shape than ever before historically, due to being forced to tighten up financial methods and efficiencies. Before investing in any airlines, you should carefully question what you’re getting into. Yes, they have historically been lucrative stocks, sometimes seeming to just sprout money. But today, fears about terrorism, though exaggerated, have caused many people to reconsider the wisdom of flying at all. And pending lawsuits, questionable pension practices, and shrinking wages are bringing into question the future financial viability of publicly owned airlines even if one discounts terrorism as a problem. Ultimately, how much money will terrorism cost the airlines? There’s no way of knowing. But liabilities like these aren’t the only problems facing airlines today.

Higher oil prices have shrunk profits significantly, while competitive pricing through the Internet has made it all but impossible to raise ticket prices and retain customers. Many airlines have resorted to using frequent flier miles and expanded frequent flier programs to draw new customers and retain old ones. But frequent flier programs cost money. How long can the programs be maintained before they have to be restricted beyond the tolerance of most customers? Ultimately, the entire industry may wind up regulated again. If that happens, your stock will almost certainly take some financial damage. Unless you’re purchasing airlines stock for ideological reasons, why take the risk?