United Airlines' Long-Serving CFO To Retire Next Year

United Airlines' UAL CFO Gerry Laderman stated that he intends to retire in 2024. The company, which will undertake a thorough search process to find a replacement for Laderman, said that the incumbent is expected to retire no later than Sep 30, 2024.

To facilitate a smooth transfer of power, Laderman will discharge his current responsibilities until the effective date of UAL appointing his successor. After that, he will serve as Executive Vice President, Finance until his retirement next year.

Laderman has been associated with the Chicago-based company in various capacities for more than three decades. He has occupied the current position since 2018. As a CFO, Laderman is responsible for developing the carrier's financial strategy which includes cost management, capital allocation and balance sheet optimization.

Driven by the stronger-than-expected bounce back in air-travel demand from pandemic lows, United Airlines shares have gained 25.9% year to date compared with its industry's 12.2% appreciation in the same timeframe.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

United Airlines currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks for investors interested in the Zacks Airlineindustry are Copa Holdings CPA and Allegiant Travel Company ALGT. While Copa sports a Zacks Rank #1 (Strong Buy), Allegiant carries a Zacks Rank #2 (Buy) at present. 

Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.

CPA's focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.

Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.3% upward over the past 60 days.

Allegiant is seeing a steady recovery in domestic and leisure air travel demand. In first-quarter 2023, operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.

Allegiant's fleet-modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised upward by 47% in the past 60 days.

Image by Arkin Si on Unsplash