Mar 11, 2025 - Business

Major U.S. airlines warn consumers aren't spending

Ben Berkowitz

Passengers entering San Diego International Airport. — Passengers entering San Diego International Airport in March 2025. Photo: Kevin Carter/Getty Images)

Three of the largest U.S. airlines have cut their revenue or earnings forecasts since Monday's market close, with all citing weakening consumer demand.

Why it matters: Indications are piling up, almost by the hour, that consumers — the engine of the U.S. economy — are losing their nerve amid tariff uncertainty and rising recession fears.

Catch up quick: Delta, Southwest and American all warned Monday night and Tuesday morning that their first-quarter results will disappoint.

"(We) saw companies start to pull back in terms of corporate spending — started to stall. Consumer spending started to stall. Largely domestic, largely in the close-in. But it was also exacerbated, as you know, the uncertainty that's out there and consumers in a discretionary business do not like uncertainty," Delta CEO Ed Bastian told CNBC.
Southwest, in a regulatory filing, cited lower government travel and "softness in bookings and demand trends as the macro environment has weakened."
American, in a filing, cited the impact of the January crash of American Flight 5342 in Washington, as well as "softness in the domestic leisure segment, primarily in March."

The intrigue: Stocks across the travel and leisure sector dropped sharply Tuesday morning, including hotels and cruise lines, as well as other airlines.

The big picture: Across Wall Street, top strategists are slashing their outlooks for the U.S. economy for 2025 as signs of weakness pile up.

Goldman Sachs was the latest on Monday, saying growth this year will be much weaker than expected due to President Trump's trade policies.

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Major U.S. airlines warn consumers aren't spending

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