Major airlines are heading towards a "super bull market"? Hedge fund big shots are betting on United Airlines' stock price doubling.

Jack Woodruff, founder of Candlestick Capital Management, a well-known hedge fund institution from the United States, stated on Wednesday that he expects the stock price of United Airlines (UAL.US) to at least double in the next two years. Just as Woodruff released his bullish expectations for United Airlines, the airline released impressive financial reports and performance outlook beyond market expectations. Strong demand in the high-end market drove United Airlines' third-quarter revenue to increase by 2.6% year-on-year to $15.23 billion. More importantly, the airline's management expects to achieve the highest quarterly revenue in the company's history in Q4 and also provided performance guidance for Q4 and full-year profits that exceeded market expectations. According to reports, at the Morgan Stanley/Robin Hood investor conference held on Wednesday local time, Woodruff told attendees that the structural transformation occurring in the global aviation industry is underestimated by market investors. Some participants at the event (who requested anonymity as the event was not open to media) mentioned that Woodruff stated at the conference that so-called network-type large airlines, like United Airlines, will ultimately benefit significantly. Woodruff even predicted that United Airlines' stock price could skyrocket to about 2.5 to 3.5 times its current price within the next 18 to 24 months. He made these seemingly crazy bullish statements at almost the same time as the airline released its third-quarter financial report on Wednesday afternoon. With more affluent travelers globally choosing high-end travel products, United Airlines and Delta Air Lines, Inc. are investing in new aircraft models, improved cabins, and adding high-end dining options. Meanwhile, ultra-low-cost carriers are forced to offer deeper discounts to attract the large segment of budget travelers in the market. United Airlines CEO Scott Kirby previously stated last month that a shortage in new aircraft supply from Boeing and Airbus is hindering the airline's plans to profit from the flourishing trend of high-end travel. Issues such as engine shortages, global supply chain problems caused by trade wars, and certification delays have significantly slowed down the delivery process of United Airlines' large orders of new jet aircraft. As of Wednesday's closing on the U.S. stock market, the stock price of United Airlines was at $104.05. The airline's stock has only risen by 7% so far this year, significantly underperforming the S&P 500 and Nasdaq Composite indexes. During the performance call on Wednesday, United Airlines management stated that the company's efforts to attract and retain discerning travelers, along with investments in its fleet, have given it resilience in economic fluctuations. As the U.S. economy and market demand continue to improve in the fourth quarter, the airline has significant upside potential. United Airlines' latest performance showed a 6% increase in revenue in the premium cabin and a 4% increase in revenue in the basic economy cabin. Looking ahead, United Airlines expects to achieve the highest quarterly total revenue in the company's history in the fourth quarter. The airline also projects adjusted earnings per share in the fourth quarter to be between $3.0 and $3.5, better than the market's general expectation of around $2.82. United Airlines expects its full-year performance to reach the upper end of the previously provided guidance range. The airline stated that it will continue to invest in enhancing the premium passenger experience (Deluxe Corporation lounges, onboard internet/entertainment) to improve overall premium and customer loyalty. Overall, Woodruff's latest bullish framework for airlines aligns with the sell-side views on Wall Street - upscale demand, customer loyalty, and a large international network have increased United Airlines' pricing power and overall performance quality. Supply constraints in the short to medium term can fully support ticket prices and profit margin expectations. Industry statistics and performance guidance from competitors show that international routes and high-end travel demand are booming. At the same time, corporate travel is significantly recovering, and overall ticket prices are continuing to improve; this matches United Airlines' investment in its "international network + Polaris/premium economy cabin," which is very conducive to the airline's profitability and cash flow. Therefore, the market generally believes that the economics of upscale demand and loyalty make the profitability structure of network-type large airlines superior to ultra-low-cost carriers (ULCC). The latter need to offer deeper discounts to attract customers under demand stratification, leading to profit pressures. Large carriers like United Airlines and Delta Air Lines, Inc. have stronger pricing power on upscale, business, and international passenger flows, and better profit resilience. Woodruff, who previously worked at Citadel, founded Candlestick Capital in 2019. The hedge fund management company focuses on consumer and internet stocks and is highly regarded in the global hedge fund industry circles.