Airline executives warn that demand for domestic trips slows down

Airlines reduce their earnings and sales estimates in the first quarter, warning that a weaker economic background weighs the demand for fares.

Ahead of the JPMorgan Industry Conference, US Airlines On Tuesday, they said he expects to lose between 60 cents per share and 80 cents per share in the first three months of the year, which is more broadly, than 20 cents up to 40 cents per share earlier. It states that the profits are likely to be flat in the year compared to the January estimate of as much as 5%.

The American stated that in submitting securities, that “the income environment was weaker than originally expected from the influence of flight 5342 and the softness in the segment of the internal leisure, first of all in March,” referring to Deadly collision In January, one of the regional planes and the army helicopter in Washington, the District of Colombia.

The forecast has followed Delta Air Lines cutting it Estimates of the first quarter After the market is closed on Monday. Delta stated that her forecast “influenced the recent decrease in consumer and corporate trust, caused by an increase in macro -determination, for softness in domestic demand.”

Apart from rest, carriers also noted that a sharp decline in Government Travels Since the start of Trump’s last administration and his politicians, such as tariffs, government dismissal and other costs.

“I think people are cautious, and they are a little back on trips, not organized, but just waiting to find out what will pass, whether it is trade and tariff problems or macroeconomic policy changes, or just a bit of a market that we all see,” – CEO Ed Bastian at JPMorg.

United Airlines CEO Scott Kirby repeated these sentiments at the same conference.

“We also saw weakness in the demand market,” Kirby said. Government trips make up about 2% of the United Staff, but also influenced other workers, such as consultants and contractors, which account for another 2% to 3%.

“We saw how to bleed in the domestic rest market,” Kirby said.

One of the cost savings: Kirbi said that United retired 21 planes, planes that otherwise have to spend $ 100 million on major repairs this year.

Both executives were more raised in long-term trends and bright spots, such as international demand for many years and premium experiences.

Delta and US shares have decreased by more than 6%in the afternoon. United has decreased by less than 1%.

South -Western airlines Also reduce income recommendations to increase no more than 4%, decreasing by far as far as the first quarter over the past year. Carrier also announced on Tuesday the end of his policy “two bags” free to charge customers proven luggage For the first time since May. His shares increased by 8%.

JetBlue Airways The stock increased by approximately 6%.