The stock of air transportation company United Airlines (UAL) has plunged in price over the past month as another highly-contagious coronavirus strain has emerged to menace the world’s population. Is it worth buying the stock, given the negative margins and the possibility of travel restrictions that are now affecting the airline industry? Let’s see. United Airlines Holdings Inc., Chicago (NASDAQ:), offers air transport services throughout North America, Asia and Europe through its subsidiaries. Through its regional and mainline fleets, the company can transport people and cargo.

UAL shares fell 22.7% and 16.5% in the last six months due to rising concerns about the COVID-19 omicron variation. To stop the spread of this variant, governments around the world are adopting strict guidelines and new travel restrictions. This is directly affecting an already troubled aviation industry.

As the industry made its way out of the pandemic, COVID-19 has threatened its resurgence. In addition, UAL’s poor profitability could further raise investors’ concerns about the stock’s prospects and cause its share price to decline in the near term.

Continue reading on StockNews