US Airlines Slash Flights Amid Declining Travel Demand

Major U.S. airlines are reducing flight schedules and withdrawing profit outlooks for 2025 amid a sharp decline in domestic leisure travel and growing fears of recession, with industry leaders citing the impact of President Donald Trump's sweeping tariffs as a key factor. The tariffs have led to increased costs for aircraft parts and repairs, prompting the aviation industry to lobby the White House for tariff exemptions to restore cost advantages. Airline CEOs, including those at American, Southwest, and United, report that consumer uncertainty and a downturn in discretionary spending have caused a significant drop in bookings, particularly among economy travelers. International travel to the U.S. is also down, with some analysts attributing the decline to both tighter entry policies and protests against U.S. trade measures. Despite strong business and premium travel segments, the sector is facing what some executives are calling an industry recession, as economic indicators suggest a broader slowdown. Major aerospace suppliers like Boeing and GE are also taking cost-mitigation steps to cope with price hikes and order backlogs resulting from the tariffs.