Norwegian Air Shuttle & United Airlines: Two Trending Airline Stocks

Summary

• Norwegian Air Shuttle’s market capitalization is around NOK1.677 billion.
• United Airlines resumed nonstop services this year after pandemic restrictions.
• United Airlines’ Q1 operating revenue was around US$3.2 billion.

The airline industry is expected to bounce back strongly in the coming months as the pandemic restrictions gradually lifted.

The quick vaccination drive across the US has helped curb the virus's spread and helping the industry in nursing back to health. It is estimated that ticket sales and air traffic volumes have significantly improved over the past two months.

Industry experts say more people are travelling on air, both for domestic and international travel, these days as the virus threat wanes with the ready availability of covid vaccines. The cruise liners are also planning to start their holiday voyages in the summer.

Let's explore more about these two airline stocks and what their future likely to hold.

Norwegian Air Shuttle ASA (OSE: NAS)

It is Norway's largest airline.

The company raised NOK6 billion (about US$714 million) through bonds, shares, and rights sale last week and is set to exit a restructuring process, which had been on for some time.

It is also the fourth-largest low-cost carrier in Europe, with services across the globe, including Europe, the Americas, and Asia.

In 2020, the company had raised NOK3.73 billion through share sales after it found itself drowning in debt. The Ireland and Norway courts had asked the airline to raise at least NOK4.5 billion to emerge from bankruptcy protection.

Norwegian Air Shuttle has a market cap of NOK1.677 billion.

The stock price was around NOK18.93 at 3:23 PM ET on May 25. The stock value dropped around 50% in the last six months. 

It logged total revenue of about NOK9.095 million for the year ended December 12, 2020.  

Source: Pixabay.     

Also Read: Direct Flight Between New Zealand and the US on the Cards. But When?

United Airlines Holdings (NASDAQ:UAL)

United Airlines is based in Chicago. It plans to launch 41 new domestic and two new international routes this year.

Plans are also afoot to foray into 13 more overseas routes in the future. Post lockdown this year, the airline resumed services on 12 domestic and five international routes.

UA reported a net loss of US$1.4 billion in Q1, exacerbated by the pandemic. Revenue from operation was US$3.2 billion, down 66% YoY. Operational expenses dropped by 49%.

United Airlines' market capital is around US$18.722 million. The stock closed at US$56.98 in Tuesday's session, up 1.5% from the previous close.

Also Read: Will These 3 Industrial Stocks Profit from Biden’s Infra Push?

Forward Outlook

The company plans to invest more in customer-centric programs to capitalize on business travel recovery. It also hopes to return to positive earnings numbers after the launch of the new routes this year and beyond.

It launched an eco-skies green program that allows corporate customers to help reduce pollution. They are charged an extra fee for sustainable fuel.