Passengers flying with United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL, had to face undue harassment on the morning of Jun 2, when all flights operated by the carrier were delayed on a temporary basis. The nation-wide delay, which lasted over half an hour, was caused by a software glitch that caused the airline’s dispatching system to malfunction.
The glitch resulted in almost 150 planes (approximately 8% of the company’s morning flights) being delayed 8 a.m. Central time onward. The problem caused unnecessary panic among fliers besides disrupting the day’s morning schedule for United Airlines as well. The unwelcome news adversely impacted the stock, albeit marginally, on Jun 2.
According to some media reports, the delays were caused due to wrong flight information on the carrier’s computer network. The mysterious nature of the problem has led some to even wonder whether the system had been hacked. However, no concrete evidence has emerged yet to help reach any conclusion.
Regardless of the possible reason, the glitch prompted the Federal Aviation Administration to issue an advisory notice pertaining to a “ground stop” for all United Continental flights across the nation. The advisory was however lifted after approximately 40 minutes as flights of the Chicago, IL-based carrier resumed operations with correct dispatch information following the resolution of the automation issue.
Zacks Rank
United Continental Holdings presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include JetBlue Airways Corporation JBLU, SkyWest Inc. SKYW and Deutsche Lufthansa Aktiengesellschaft DLAKY. JetBlue carries a Zacks Rank #2 (Buy) while SkyWest and Lufthansa sport a Zacks Rank #1 (Strong Buy).
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