Turbulence Ahead: Airlines Adjust Course Amid Economic Uncertainty

Major US airlines are adjusting their flight schedules, withdrawing profit forecasts due to reduced domestic travel demand and economic uncertainty. Airlines like American, Delta, and Southwest point to declining leisure travel sales and uncertain global trade impacting their financial projections for 2025.

Major US airlines are reeling amidst declining domestic travel demand and an increasingly uncertain economic outlook. In response, airlines are revising their schedules and financial forecasts, with several carriers retracting their 2025 profit predictions.

American Airlines recently joined Southwest and Delta, citing declining sales among economy class travellers as a key factor. CEO Robert Isom mentioned that despite a robust start to the year, leisure travel saw a significant drop in February, prompting a cautious approach to future projections.

With the national sentiment veering towards recession fears, many potential travelers are holding back. The imposition of tariffs under President Donald Trump has further fueled economic unease. While business travel and premium international flights maintain steady demand, airlines like United and Delta are halting expansion plans to protect margins and cash flow amidst the widespread uncertainty.

(With inputs from agencies.)