Major U.S. airlines are reducing their flight schedules and revising or withdrawing their profit outlooks for the year due to less domestic travel demand as sentiment about the national and global economies sours.
American Airlines pulled its financial guidance for 2025 on Thursday, joining rivals Southwest and Delta in declaring the economic outlook too uncertain to provide full-year forecasts. All three airlines cited weakening sales among economy class leisure travelers.
“We came off a strong fourth quarter, saw decent business in January, and really domestic leisure travel fell off considerably as we went into the February time frame,” American Airlines CEO Robert Isom told CNBC.
Consumer reluctance to book vacations would correspond with a new poll that showed many people fear the U.S. is being steered into a recession and that President Donald Trump’s broad and haphazardly enforced tariffs will cause prices to rise.
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