Overview

• Jefferies downgraded Delta, American Airlines, Southwest Airlines, and Air Canada, citing weak consumer confidence, macroeconomic uncertainty, and tariffs.
• Airline stocks saw significant declines, with Delta down 5%, Southwest over 5%, and American Airlines nearly 3%.
• Southwest announced plans to cut over $1 billion in costs by 2027, including introducing fees for checked bags, to address financial pressures.
• U.S. household spending on airlines dropped 7.2% in February, reflecting the lowest consumer sentiment in four years.
• The NYSE Arca Airline Index fell nearly 17% in Q1 2025, marking its largest drop since Q3 2023, as travel demand weakens.