From Yahoo Finance: 2025-04-01 16:46:00

Investment banking company Jefferies downgraded Delta, American Airlines, Southwest Airlines, and Air Canada, causing airline stocks to drop. American Airlines finished down 2.4%, Delta dropped 2.7%, and Southwest Airlines fell 5.9%. United Airlines remains a “buy,” but is down 1.2%.

Consumer sentiment is expected to remain soft due to macro uncertainty. The U.S. Consumer Expectations Index reached its lowest level in 12 years at 65.2 points, signaling recession concerns. Consumers are worried about inflation and Trump’s tariffs, impacting business, income, and job prospects.

Americans are cutting back on travel expenses. Bank of America reported a 7.2% reduction in credit and debit card spending in February, reflecting consumer fears about the economy.

United Airlines CFO Mike Leskinen stated that government travel has decreased post-inauguration, leading to revenue declines for the airline. Mass government-worker layoffs by the Trump administration have impacted airline revenue from government, consultant, and contractor travel.

Read more: Airline stocks fall as consumers pull back on travel spending