UBS analyst Thomas Wadewitz downgraded United Airlines (UAL) to Neutral from Buy with a price target of $59, down from $107. The firm cites a weaker economic backdrop and increasing visibility to a potential recession for the downgrade, telling investors in a research note that as tariffs cause significant pressure on international travel, the firm expects domestic leisure headwinds and softening corporate travel to intensify, causing deterioration in TRASM and revenue in Q2 and the second half of 2025. The firm also expects to see deterioration in premium and international, which have provided significant support for United’s earnings performance, given the new, more challenging economic backdrop.
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