How Will United’s Equity Value Be Impacted If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
Jet fuel costs account for one-third of an airline’s total operating expenses. Due to the steep fall in crude oil prices over the last 20 months, the fuel expense of airlines throughout the globe has been reduced significantly, resulting in a notable jump in their earnings. In our base case, we anticipate crude oil prices to recover steadily to $70 per barrel by 2018. However, in case the oil prices recover sooner than expected, and average $100 per barrel in 2018, then we expect a 60% downside to our base case price estimate for United Continental.
Have more questions about United Continental (NYSE:UAL)? See the links below:
- How Will United’s Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
- How Will United’s Revenue And EBITDA Grow Over The Next Five Years?
- How Important Is United’s International Division For Its Overall Equity Value?
- What Is United’s Fundamental Value Based On 2016 Estimated Numbers?
- Why We Think United Continental Is Worth $65 Per Share?
- What Drove United’s Revenue And EBITDA Growth Over The Last Five Years?
- How Has United’s Revenue And EBITDA Composition Changed Over The Last Five Years?
- What Is United Continental’s Revenue And EBITDA Breakdown?
- How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
- How Have Plummeting Crude Oil Prices Impacted United Continental’s Operating Margin?
- Spurred By Stellar Earnings, Can United Airlines Holdings Stock Extend Its Run?
- United Airlines Holdings Stock Looks Set For A Come Back
- Down 13% Last Week, Can United Airlines Holdings Stock Bounce Back?
- Is United Airlines Stock On The Move?
- Company Of The Day: United Airlines
- Will United Airlines Stock Rise After Recent Correction?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
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