American, Southwest shares fall sharply after reports

Shares in American Airlines AAL.O and Southwest Airlines LUV.N were falling sharply on Thursday after their quarterly updates prompted concerns about U.S. travel demand

Southwest shares were down 10.8% at $33.38 after it reported lower-than-expected quarterly profits and revenues late Wednesday due to tepid demand from U.S. consumers for travel

AAL shares were off 7% at $11.80 after it restored its full-year financial outlook on Thursday but offered a wide forecast range, citing broader economic uncertainty hobbling of consumer spending on domestic travel

LUV was tracking for its biggest one-day pct drop since March 2024 while AAL was eyeing its biggest one-day dip since April 10

Rival Alaska Air Group ALK.N was down 2.1% while Delta Air DAL.N was off 0.8%; Dow Jones Transport Average index .DJT was slightly lower while the NYSE Arca airline index .XAL dropped 2.5% and was on pace for its biggest daily percentage drop since July 11