United Airlines Holdings Inc. (UAL) is a leading airline that operates both passenger and cargo transportation services. With an extensive network spanning the United States, Asia, Europe, Africa, the Middle East, Latin America, and the Pacific, United Airlines utilizes a hub and spoke system.
It collaborates with regional carriers under the United Express brand and partners with global airlines as a member of the Star Alliance.
Key Takeaways
- Institutional funds like Vanguard, Primecap, and Capital International Investors are the top shareholders of United Airlines (UAL).
- Among individuals, the largest shareholders are company insiders, including CEO J. Scott Kirby and President Brett Hart.
In the fiscal year 2022, United Airlines reported a net income of $737 million, generating $45 billion in revenue. The market capitalization of the company currently stands at $18.0 billion.
Let’s take a closer look at the major shareholders of United Airlines. Among individual shareholders, Oscar Munoz, J. Scott Kirby, and Brett J. Hart are prominent stakeholders. On the institutional front, the top shareholders include Vanguard Group Inc., Primecap Management Co., and Capital International Investors.
Oscar Munoz
Oscar Munoz, the executive chair of United Airlines since May 2020, holds 241,336 shares, representing 0.05% of the outstanding shares. Prior to his current role, Munoz served as CEO from 2015 to 2020 and held the position of president from 2015 to 2016. Before joining United Airlines, Munoz held executive leadership positions at CSX Corp., a renowned railroad and intermodal transportation services company. Additionally, he serves on CBRE Group Inc. and Univision Holdings Inc boards.
J. Scott Kirby
J. Scott Kirby, who held the presidency of United Airlines from 2016 to 2020 and assumed the CEO position in May 2020, owns 430,886 shares, representing 0.07% of the outstanding shares. Prior to his tenure at United Airlines, Kirby served as the president of American Airlines from 2013 to 2016 and held the same position at U.S. Airways from 2006 to 2013. Moreover, Kirby chairs the Star Alliance Chief Executive Board.
Brett J. Hart
Brett J. Hart, the president of United Airlines Holdings Inc. since May 2020, possesses 148,504 shares, accounting for 0.04% of the outstanding shares. Hart joined United Airlines in 2010 and most recently held the executive vice president and chief administrative officer position. In 2015, he served as the interim CEO for six months. Hart oversees various aspects of United Airlines’ operations, including public advocacy strategy, government affairs, corporate communications, legal and community engagement teams, and the corporate real estate team. He also serves on the board of AbbVie Inc.
Turning our attention to the institutional shareholders, it is worth noting that more than 750 13F filers held United Airlines stock as of Q2 2023. Five institutional investors included United Airlines as 3% or more of their total portfolio. Notably, institutional shareholders collectively hold 68% of United Airlines’ stock.
Let’s explore the top three institutional shareholders:
Vanguard Group Inc.
Vanguard Group Inc. owns approximately 37.9 million shares of United Airlines, equivalent to 11.7% of all outstanding shares based on its 13F filing ending on May 15, 2023. Vanguard is a renowned mutual fund and ETF management company, managing about $7.6 trillion in global assets as of March 31, 2023. Investors can gain exposure to United Airlines stock through Vanguard’s Vanguard Mid-Cap Value ETF (VOE), with United Airlines accounting for 0.04% of Vanguard’s total portfolio.
Primecap Management Co.
Primecap Management Co. holds 23.9 million shares of United Airlines, representing 7.4% of the total outstanding shares, according to the company’s 13F filing as of March 31, 2023. As an investment management company, Primecap focuses on managing U.S.-based equity portfolios for institutions and mutual funds. The company manages around $114 billion in assets under management (AUM). The Primecap Odyssey Growth Fund includes United Airlines in its portfolio, with United Airlines accounting for approximately 0.9% of the fund’s holdings.
Capital International Investors
Capital International Investors holds 20.4 million shares of United Airlines, amounting to about 6.2% of all outstanding shares as of March 31, 2023. Capital International Investors serves as the investment arm of Capital International Group, with a significant AUM of $417 billion in 2023. Alongside United Airlines, the company’s notable holdings include tech giants such as Microsoft (MSFT), Meta (META), and Alphabet (GOOGL). The United Airlines shares owned by Capital International are valued at approximately $1.1 billion, which constitutes roughly 0.3% of its overall portfolio.
United Airlines is predominantly backed by institutional investors, with Vanguard, Primecap, and Capital International Investors being the leading stakeholders. Additionally, key insiders, including the CEO and president, hold substantial shares in the company.
If you’re interested in investing in United Airlines, you can purchase UAL shares through your brokerage or invest in mutual funds with UAL shares in their portfolios.
Lastly, if you plan to travel with United Airlines, note that the carry-on baggage size for domestic flights is limited to 9 inches x 14 inches x 22 inches.
In conclusion, United Airlines Holdings is a global airline for passengers and freight. While institutional funds constitute its major investors, company insiders also have significant involvement.
