US Airlines Cut Forecasts Amid Economic Concerns, Stocks Tumble

Major U.S. airlines, including Delta, American, Southwest, and JetBlue, have lowered their revenue forecasts for the first quarter of 2025, citing declining consumer confidence and rising economic uncertainty. Delta Air Lines has cut its profit outlook by 40 to 50 cents per share due to a noted reduction in domestic travel demand, while American Airlines anticipates a larger loss than previously expected. Southwest Airlines also revised its revenue growth projections downward but saw a stock increase after implementing a paid baggage policy. The broader airline sector is experiencing significant stock declines as fears of a recession grow amid tariff pressures and potential government shutdowns affecting consumer spending. Analysts have indicated that these forecast cuts, while disappointing, were somewhat anticipated given the recent economic indicators. The Dow Jones U.S. Airline Index has dropped roughly 6%, reflecting the overall market's response to these developments.