Major U.S. airlines cut their flight schedules and modified or eliminated their 2025 profit projections because domestic travel demand decreased because of rising economic uncertainty. American Airlines joined Southwest and Delta on Thursday in withdrawing its full-year guidance, citing an unpredictable economic climate and declining sales, particularly among economy-class leisure travelers.
American Airlines CEO Robert Isom stated to CNBC that the airline experienced a strong Q4 and decent January but domestic leisure travel decreased substantially in February. The industry-wide trend matches a recent survey which shows that President Donald Trump’s unpredictable and extensive tariffs create price increases that could lead the U.S. toward economic recession.
The current economic indicators support these worrisome trends. The U.S. existing home sales experienced a slowdown during March while consumer sentiment dropped for the fourth consecutive month in April because people feel negative about the economy. The current economic situation remains complex because layoffs have not occurred despite widespread concerns. The airlines have taken cautious steps because trade war disruptions and consumer hesitation have reduced both confidence and travel spending.
