Why Shares of United Airlines Rose 23.7% in November

United Airlines (NASDAQ: UAL) rose by a whopping 23.7% in November, according to data from S&P Global Market Intelligence. To find the reason behind the move, you need to look no further than the U.S. presidential election. Based on the history of previous administrations, the new Trump administration is seen as one that will take a less stringent approach to merger-and-acquisition activity in the airline industry. A more accommodating approach to mergers and acquisitions will lessen the impediment to individual airlines' strategic objectives, but there is also an industrywide issue. The airline industry's history tells the story of a business that continually fails to generate a return on invested capital (RoIC) to cover its cost of capital. While there was a significant improvement in the years leading up to the pandemic, when airlines generated enough profit to cover the cost of capital, the overarching issue is still a concern for equity investors.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool