United Airlines Holdings Inc (NASDAQ:UAL) shares are trading lower by 15.6% to $79.24 since Monday’s open. The broader market is facing downward pressure this week as investors are closely monitoring the implications of ongoing geopolitical tensions, including tariffs and trade disruptions, which are beginning to influence major airlines like United.
What to Know: United Airlines’ stock took a hit as heightened trade tensions and potential new tariffs on U.S. imports from countries like China, Mexico and Canada have raised alarms about the broader economic outlook.
As an airline that operates internationally and relies on global supply chains, United is particularly vulnerable to any changes in trade policy, especially as it could lead to higher operational costs.
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The airline is heavily reliant on fuel prices, aircraft parts and other materials sourced globally, all of which are subject to fluctuations driven by tariffs. A significant rise in the costs of these essential materials could directly impact the airline's bottom line.
Additionally, tariffs may force United to pay more for goods and services that are critical to its daily operations, such as catering, maintenance and even airport services.
What Else: International travel also accounts for a substantial portion of United Airlines’ revenue, and any retaliatory measures on U.S. airlines by foreign governments could limit its ability to expand its international routes. This could negatively affect future earnings, particularly in markets where United has been increasing its footprint.
Moreover, the airline industry is notoriously price-sensitive, and if costs rise due to tariffs, these increases could be passed down to consumers in the form of higher ticket prices.
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How To Buy UAL Stock
By now you're likely curious about how to participate in the market for United Airlines – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of United Airlines, which is trading at $79.57 as of publishing time, $100 would buy you 1.26 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, UAL has a 52-week high of $116.00 and a 52-week low of $37.02.
