2 weeks Ago
WASHINGTON, April 25 — Major US airlines are scaling back flight schedules and withdrawing financial forecasts for 2025 due to a sharp drop in travel demand in the wake of the second Trump presidency. According to the Associated Press , American Airlines pulled its full-year guidance on Thursday, following similar moves by Delta and Southwest, all citing weaker sales among economy leisure travellers. “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,” said American Airlines CEO Robert Isom.
A new poll shows many Americans fear a looming recession and believe President Donald Trump’s tariffs will push prices higher, discouraging holiday bookings. Concerns are also growing over international travel, with JP Morgan’s Michael Feroli noting anti-American sentiment may be deterring overseas visitors, now 5 per cent lower year-on-year. “In recent weeks there have been numerous news stories about tourists canceling trips to the US in protest of the perceived heavy-handedness of recent trade policies,” Feroli said in a note.
Economic indicators such as falling US home sales and consumer sentiment add to recession fears, though there has been no significant rise in layoffs so far. Trump’s broad tariffs announced on April 2 spooked markets and triggered spending pullbacks, with China retaliating by raising tariffs on US goods to 125 per cent and denying that trade talks are ongoing. American Airlines plans to revisit its forecast once the economic situation becomes clearer, while noting continued strength in business and premium international travel.
Delta, United, Southwest, Frontier, and Alaska Airlines have all adjusted their outlooks or scaled back flight growth, citing slower global trade and weakening consumer confidence..
