As many are planning summer travel, major U.S. airlines are warning of softer-than-expected domestic travel demand, prompting concerns about a potential economic slowdown. Airline CEOs point to growing uncertainty—ranging from unpredictable economic policy to volatile markets—as a key factor behind cautious consumer and corporate spending. As a result, several carriers like Delta, Southwest, and American are scaling back growth plans and pulling their 2025 financial forecasts. In addition, they are cutting domestic flight prices in an attempt to fill excess seat capacity. This, of course, is a positive for the consumer. Business and government travel are also under pressure, though international flights and premium cabin sales remain relatively strong. Executives believe a more stable economic outlook could help the industry bounce back.
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