The main American airlines reduce their flight schedules and decline or withdraw their profit expectations for this year due to the demand for less local travel as a feeling of national and global economies.
The US Airlines company withdrew its financial instructions for 2025 on Thursday, and joined its competitors southwestDeltaIn the announcement of economic expectations, it is not sure to provide expectations for a full year. All three airlines were martyred with weak sales between the economic travelers of the economic class.
“We have gone out of the strong fourth quarter, we witnessed a decent work in January, and the local entertainment travel fell largely largely with we went to the timeline of February,” Robert Isom, CEO of CNBC, told CNBC.
The consumer frequency will be compatible with the reservation of vacations withNew pollWhich showed that many people are afraid of being the United StatesStagnateThe extensive and hypothesis definitions of President Donald Trump will lead to high prices.
There are also increasing concerns about international travelers. Michael Felly, the chief American economist at JP Morgan, said in a client note that the anti -American feelings can stimulate a decrease in travel, as data show that international visitors to the United States lower about 5 % less than a year.
“In recent weeks, there have been many news stories about the cancellation of tourists to the United States in protest against the fractures of modern commercial policies,” he wrote. “This refers to another channel that is likely to consider assessing the effects of definitions on economic activity.”
Some economic indicators indicate slowdown. House sales that I previously occupiedSummary in MarchAndAmerican consumer feelingsIt decreased in April, the fourth consecutive month of the decline. However, fears of stagnationIt was not translated into workers’ demobilization.
Trump declared the sweeping tariffs on April 2, which sparked panic in financial markets and generating concerns, prompting consumers and companies to start spending on spending, including travel. PresidentPut a partial contract for 90 days on import taxesBut he actually increased to himA sharp tariff against China.
Beijing increased the import tax onAmerican goods to 125 %In revenge. On Thursday Chinato rejectTrump’s assertion that the two sides participated in active negotiations to end or reduce their trade war.
The US Airways said it will make an update for its entire year as “economic expectations become more clear.” The airline’s executive officials said that sales between travelers of businessmen and distinguished seats on long -term international flights have been strong.
Southern West Airlines She mentioned late on Wednesday that she would present her flight schedule for the second half of the year due to the low demand. The company also said it could not confirm its expectations for 2025 and 2026 for profits before benefits and taxes, given the “current macroeconomic uncertainty”.
The United Airlines company last week introduced two different financial predictions for how it performed this year, one if there is stagnation and one if not. The airline said it is planning to reduce its 4 % domestic flights, starting in July, in response to the low demand expected to economic fare tickets.
“We believe that there is a reasonable opportunity that things can be weakened from here,” United CEO Scott Kirby He said.
Delta AirlinesThe most profitable transport company in the country, which is classified in January, predicted that the company was on the right path for the best financial year in its history. Earlier this month, the airline scratched the expectations of its performance of 2025 and said it had set a plan for aviationExpanding waiting.
“With the wide economic uncertainty about global trade, growth has stopped to a large extent,” said Ed Bastian, CEO of Delta at the time. “In this slower growth environment, we protect margins and cash flow by focusing on what we can control. This includes reducing the growth of the planned capacity in the second half of the year.”
The parent companies of Frontier Airlines and Alaska Airlines also withdrew their directives for 2025.
This story was originally shown on Fortune.com
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