Wed Mar 12 08:40:00 UTC 2025: ## Major US Airlines Slash Forecasts Amid Economic Fears and Reduced Demand
**New York, NY** – American Airlines, Delta Air Lines, and Southwest Airlines have all significantly lowered their first-quarter 2025 earnings forecasts, citing a weakening economic outlook and softer-than-expected travel demand. This follows a broader market downturn fueled by concerns about the US economy’s health.
American Airlines attributed its revised guidance, which now predicts a wider-than-expected loss per share, partly to the impact of a fatal January plane crash involving one of its aircraft. The airline also cited weaker-than-anticipated leisure travel demand.
Delta Air Lines cited reduced consumer and corporate confidence due to increased macroeconomic uncertainty as the reason for its lowered profit and revenue growth projections. Southwest Airlines also reduced its forecast, blaming decreased government travel, the impact of California wildfires, and softer bookings and demand trends.
The downward revisions highlight concerns within the airline industry about its ability to sustain its post-pandemic recovery. These announcements come as airline executives meet at a JPMorgan conference to discuss industry challenges. While Southwest saw a stock rally due to plans to introduce checked baggage fees, shares of American, Delta, and United Airlines fell following the news.
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