Overview

• All major US airlines, including American, Southwest, Delta, and Alaska, have pulled their 2025 financial guidance due to economic volatility and weak domestic demand.
• Executives report a significant drop in domestic leisure travel, with bookings falling sharply since February, particularly among price-sensitive customers.
• Southwest and other carriers are cutting flight capacity for the second half of 2025 to manage costs and align with reduced demand.
• Premium and international travel segments remain resilient, providing some stability for airlines despite domestic challenges.
• President Trump's tariffs and associated trade tensions are cited as key factors driving economic uncertainty and reduced consumer confidence in travel spending.