Overview

• All major U.S. airlines, including American, Southwest, Delta, and United, have pulled their 2025 financial guidance due to economic volatility caused by President Trump's trade war.
• Domestic leisure travel demand has significantly weakened, with consumers booking fewer and lower-fare tickets, while premium and international travel remain comparatively stable.
• Airlines are proactively reducing flight schedules and capacity, with United planning a 4% reduction in domestic flights starting in July.
• Southwest and other carriers are introducing cost-saving measures, such as higher ancillary fees and ending policies like free baggage, to offset revenue declines.
• Executives from several airlines anticipate providing updated forecasts by mid-year, hoping for greater economic clarity to guide future planning.