US airlines' shares fall as tariffs stoke discretionary spending worries

Shares of major U.S. airlines fall in early trading on worries around a slowdown in discretionary spending amid a tariff war

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada take effect on Tuesday, along with doubling of duties on Chinese goods to 20%

Delta Air Lines DAL.N down 6.9%, United Airlines UAL.O down 8% and American Airlines AAL.O down 6%

Budget carriers Southwest Airlines LUV.N down 3.2% and JetBlue Airways JBLU.O down 8.5%

"As retailers and other businesses warn their customers about higher prices from tariffs, there's a feeling that people will have less discretionary spending available for holidays and vacations," says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital

"Businesses may also reduce corporate travel in order to help keep their expenses in check and maintain margins," Schulman says

YTD, S&P 1500 airlines sub-index .SPCOMAIR down 6.3%