Overview

• Jefferies downgraded American Airlines, Delta Air Lines, and Southwest Airlines, citing disappointing consumer sentiment and rising uncertainty around tariffs.
• Shares of the three carriers dropped between 3% and 5% following the downgrades, reflecting broader challenges in the airline industry.
• United Airlines remains the only U.S. carrier with a 'buy' rating from Jefferies, though its price target was cut by 48%.
• The NYSE Arca Airline Index fell nearly 17% in Q1 2025, marking its largest decline since 2023, driven by weaker travel demand and economic pressures.
• U.S. household spending on airlines dropped 7.2% year-over-year in late March, with factors like extreme weather and a late Easter contributing to the decline.