Here's Why Shares in United Airlines Sagged This Week

Shares in United Airlines (NASDAQ: UAL) fell by 14.2% in the week to Friday morning. The decline came in a tumultuous week for the markets, driven by the tariff actions announced by the U.S. administration. While the drive to ensure a level playing field in international trade is entirely understandable, the immediate imposition of tariffs will naturally create, at the least, a period of instability as the global economy adjusts.As a transportation company and an airline with relatively large exposure to transatlantic travel, United is susceptible to changes in consumer discretionary spending and corporate travel plans, which are both likely to be negatively impacted by tariffs and similar actions.Indeed, airlines like United and Delta Air Lines have already been negatively impacted by the previous tariff actions imposed on select foreign countries. Both airlines have walked back near-term guidance in response to a softening of end market conditions as the tariffs have created a climate of uncertainty.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool