• U.S. airlines are expected to lower their 2025 outlooks as they report earnings this week, reflecting a notable decline in travel demand. Analysts have observed a shift in consumer sentiment, with travelers pulling back on bookings amid economic uncertainties, including inflation and government policies. Major airlines like Delta, American, and Southwest have already adjusted their forecasts, indicating weaker-than-expected corporate and leisure travel. This downturn has led to a significant drop in airline stock prices, with Delta's shares falling over 38% this year alone.

• The broader airline industry is experiencing a shift as demand for international travel wanes, particularly for U.S.-Europe routes, which have seen a 13% decrease in bookings compared to last year. Analysts express concerns that the current economic environment, characterized by slower growth and higher inflation, may lead to a structural decline in corporate travel. Additionally, the impact of new tariffs and mass layoffs could further dampen consumer confidence and spending on travel, raising questions about the sustainability of the industry's recovery.