Airline CEOs anticipated 2025 to be a record year for profits, but tariffs have drastically changed projections. Deutsche Bank analysts warn of an earnings recession in the industry. Delta Air Lines has already indicated that tariffs are impacting earnings, while United Airlines has shifted its positive outlook. The article discusses the susceptibility of the aviation sector to economic downturns and how consumer behavior changes in response to financial uncertainty. Following tariff announcements, airline stock prices have shown significant volatility, reflecting broader economic concerns that could affect travel demand and profitability.
Delta has already said tariffs are hurting business in an earnings call last week, and with more carriers announcing their first-quarter results in the next two weeks, investors will be watching closely.
If families need to save money, they can more easily forego a vacation than necessities. And for corporations, sending staff on business trips can quickly be seen as an unnecessary luxury.
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