TLDR
- UAL dropped 5.88% to $110.05 Thursday, ending a two-day winning streak.
- United unveiled its biggest MileagePlus overhaul in over a decade, focusing rewards on credit card spenders.
- Co-branded JPMorgan Chase cardholders get more miles, lower redemption rates, free bags, and priority boarding.
- Delta, American, and Southwest all fell more than UAL on the day.
- The revamped program launches April 2; analysts are watching margins and adoption closely.
United Airlines closed Thursday at $110.05, down 5.88% on the day.
United Airlines Holdings, Inc., UAL
The move ended a two-day winning streak and left UAL sitting 7.68% below its 52-week high of $119.21, hit on January 7.
The S&P 500 fell 0.28% and the Dow dropped 0.54% in the same session. UAL felt the pressure more than most.
Trading volume came in at 5.0 million, slightly below the 50-day average of 5.1 million.
United Overhauls MileagePlus for the First Time in a Decade
The sell-off came after United announced the most sweeping changes to its MileagePlus program since moving from distance-based to spend-based rewards in 2016.
The new structure puts co-branded JPMorgan Chase cardholders at the top of the rewards ladder. They earn more miles per dollar spent, get lower redemption rates on select routes including long-haul business class, and unlock perks like free checked bags, priority boarding, and a 10% discount on mile redemptions.
UAL was already down around 3% in the morning session when the news dropped. Losses built through the day and the stock never recovered.
The new program goes live April 2.
Airline Stocks Fell Broadly on Thursday
It was a rough day for the whole sector. Delta fell 5.16% to $67.44, American Airlines dropped 5.32% to $13.35, and Southwest declined 4.96% to $52.08.
UAL’s 5.88% fall was actually the smallest decline of the four. The sector-wide weakness suggests broader market pressure was already in play before United’s announcement added fuel.
The investor concern is straightforward — new cardholder perks cost money to fund, and the market wants to see whether the program drives enough revenue to justify those costs.
Analysts will be tracking adoption rates and margin data once the April 2 rollout begins.
UAL closed Thursday at $110.05, down 7.68% from its 52-week high.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
