United has Few Feasible Alternatives to Congested Newark Airport

United Airlines Holdings, Inc. (NASDAQ:UAL) continues to experience extreme congestion at its main hub, Newark Liberty International Airport, which accounts for 22% of total capacity and 16.5% of total departures.

A bird’s eye view of a large commercial jetliner taking off from an airport runway.

Seaport Research Partners lowered its 2025 earnings prediction by 10% after the airline announced it will run fewer daily flights this summer, even though it has reduced flight numbers to ease delays.

Although the firm is deploying larger planes, such as Boeing 737-800s, at LaGuardia to lessen the impact, United Airlines Holdings, Inc. (NASDAQ:UAL) CEO Scott Kirby recognized that the disruptions will affect business. Although there are still talks going on, including a possible cooperation with JetBlue, the firm must first secure slots from major airlines, like American Airlines, Delta, and JetBlue, before it can return to JFK Airport.

United Airlines Holdings, Inc. (NASDAQ:UAL) has called on the FAA to reinstate slot regulations at Newark, which were eliminated in 2016, arguing that since then, performance has decreased. While it considers Newark to be “critical” to its domestic and international operations, the airline reported canceling less than 1% of flights on the majority of days during the last two weeks.

For many years, Newark Airport has been a vital hub for cargo and a pillar of United Airlines Holdings, Inc. (NASDAQ:UAL) domestic and global networks. The business has few options in the Northeast after terminating JFK service in 2022 due to a shortage of slots. Washington Dulles lacks Newark’s earning power, but it has room to grow. The company’s drive to reinstate slot controls is a reflection of its desire to remain dependable and dominant in a constrained environment.

While we acknowledge the potential of UAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than UAL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None.