Airline stocks slide as concerns are increasing on consumer travel

The actions of airlines slipped on Tuesday as Wall Street’s concerns about the lower than expected travel demand in the midst of imminent prices and a sharp drop in consumer confidence continues to weigh in the sector.

Actions of Delta airlines Was dropped by more than 3% in the afternoon trade after Jefferies lowered the transporter, the most profitable in the United States, to a Buy reservoir note, and almost half reduced its price of courses to $ 46, several weeks after the airline reduced its advice in the first quarter.

The bank said that Delta would “probably” reduce its 2025 forecasts. Although the concerns have developed, in particular about more priced travelers, Delta managers have declared that the airline had increased its share of income from its high -end cabins such as the first class, as well as its lucrative credit card partnership with credit card with credit card with credit card with credit card with credit card with credit card American Express.

Delta is launching the season for the results of American airlines when it reports results next Wednesday morning.

Jefferies also reduced his note American airlines,, Southwest Airlines And Air Canadawhich has an excessive exposure to a slowdown in cross-border trips with the United States

The American also fell by around 3% in afternoon trading, while Southwest has flowed more than 5%.

United Airlines There remains the only Jefferies purchasing company from the airline for American carriers, although it has also reduced its price target by 48%.

Airline leaders at a JPMorgan industry conference in mid-March have warned against demander than expected, especially for domestic travel, which constitute the majority of income from the American travel industry.

Credit and debit card expenditure of American households increased by 1.5% compared to last year to March 22, but expenditure in airlines dropped 7.2%, according to a report from the Bank of America last week.

On Monday, the Bank of America Institute wrote in a report that the decline in spending on the travel card “could be that the recent decrease in consumer confidence is reflected in people hesitating to reserve trips, or planning to make them go back”, but added that “bad weather and a late Easter this year also play a role”.

THE Index of the airline NYSE ARCAwhich mainly follows American carriers, dropped 18% in the first quarter, exceeding the S&P 500 ‘S declines and marking the greatest drop in percentage in the sector index since the third quarter of 2023.

Correction: the NYSE Arca Airline index fell 18% in the first quarter. A previous version has destroyed the drop.