U.S. Airlines Cut Flights Amid Declining Travel Demand and Economic Uncertainty

Major U.S. airlines are scaling back flight schedules and retracting financial forecasts due to weakened domestic travel demand and growing economic uncertainty. American Airlines, Southwest, Delta, and others have all withdrawn their 2025 projections, citing declining bookings, especially among leisure economy travelers.

American Airlines CEO Robert Isom highlighted a sharp drop in domestic leisure travel beginning in February. The situation is compounded by consumer fears of a recession and rising prices due to President Trump’s tariffs, which have further strained confidence. A 5% drop in international visitors to the U.S , possibly linked to negative sentiment about U.S trade policies, adds to the concerns. ​

Major airlines, including United and Delta, have halted capacity growth plans and are considering alternative financial scenarios in case of a recession. Despite solid demand for business and premium international travel, airline executives remain cautious.

Economic indicators, such as slower home sales and declining consumer sentiment, suggest a potential slowdown, though there haven’t been widespread layoffs. Tariff actions by both the U.S. and China have fueled uncertainty and reduced spending, particularly in travel. Frontier Airlines and Alaska Airlines have also pulled their 2025 forecasts, reflecting industry-wide caution amid macroeconomic instability.

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