US airline shares fall after carriers slash forecasts

Shares of U.S. airlines fall after carriers cut forecasts amid concerns over tariff pressures and government spending uncertainties

Delta Air Lines DAL.N slashed Q1 profit estimates by half on Monday, becoming the first major U.S. carrier to report that mounting economic worries among consumers and businesses were hurting domestic travel

Southwest Airlines LUV.N cuts Q1 unit revenue growth forecast but shifts to paid baggage policy to lift earnings, sending its shares up 9%

American Airlines AAL.O also forecasts a bigger first-quarter loss

DAL down 4%, American Airlines drops 1%

Analysts at Jefferies say a cut to Delta's earnings estimates was anticipated, but the magnitude is more severe

*Shares of travel booking companies also fall after airlines cut forecasts

Expedia EXPE.O down 5%, Airbnb ABNB.O loses 3.1% and Booking Holdings BKNG.O drops 1.4%

DAL down 16.8%, UAL has lost 20% and AAL has declined 28.3% so far in 2025