Major US airlines have revised or withdrawn their profit outlooks for 2025 due to lower-than-expected domestic travel demand. American Airlines, Southwest, Delta, United, and the parent companies of Frontier Airlines and Alaska Airlines all cited weaker sales among economy class leisure travelers.
The economic uncertainty surrounding global trade and tariffs has led to consumer reluctance to book vacations, with many fearing a recession. International travel is also impacted, with data showing a 5% decline in visitors from abroad compared to last year.
Airline executives point to reduced demand for business travel and premium international flights as solid areas of performance. However, they are cautioning that the economic outlook remains uncertain, making it difficult to provide full-year forecasts.
In response to lower demand, American Airlines will update its guidance later in the year once the economic outlook becomes clearer. Southwest Airlines is trimming its flight schedule for the second half of the year, while United Airlines plans to reduce domestic flights by 4% starting July. Delta Air Lines has put a planned expansion on hold due to broad economic uncertainty.
The trend of airlines reducing schedules and revising profit outlooks suggests a broader impact from weakening travel demand and economic uncertainty.
Source: https://fortune.com/article/american-airlines-ceo-guidance-trump-trade-war-tariffs-delta-united-economy