From Yahoo Finance: 2025-05-03 14:01:00

A decade ago, airline stocks seemed promising after recovering from the Great Recession. However, many leading U.S. airline stocks have plummeted over 80% in the past decade due to the devastating impact of the COVID-19 pandemic on the industry.

The COVID-19 pandemic caused a 55% drop in airline industry revenues, leading to ongoing struggles for carriers. Despite some recent optimism, fears of inflation, recession, and reduced travel spending due to massive tariff plans have dampened hopes for the industry’s recovery.

United Airlines plans to cut domestic capacity by 4% in anticipation of lower travel spending and the possibility of a recession. Other carriers like Delta Air Lines and Frontier Airlines have also adjusted their growth plans in response to the challenging economic outlook.

In 2025, airline stocks, including United Airlines, have taken a hit amid broader market declines. Investing in airline stocks a decade ago likely resulted in significant losses, with United being the only one to provide a minimal positive return compared to the overall stock market.

Read more: If You Invested in These Airline Stocks 10 Years Ago, Here’s How Much You’d Have Now