Delta Airline Boeing 767-332 (ER).
Joan Valls | nuphoto | Getty Images
Airline stocks slipped further on Tuesday as Wall Street concerns about weaker than anticipated travel demand continue to weigh sectors amid a sharp decline in looming tariffs and consumer confidence.
Stocks Delta Air Lines It fell more than 2% on Thursday after Jefferies downgraded the most profitable carrier in the US from purchases to a pending rating, and reduced its price target to $46 a few weeks after airlines cut its first-quarter guidance.
The bank said Delta would “probably” reduce its 2025 forecast. There has been growing concern, especially about more price-sensitive travelers, but Delta executives said the airlines are not only increasing their revenue share from high-end cabins like first class, but also have profitable credit card partnerships. American Express.
Delta will begin its revenue season for US airlines to report results next Wednesday morning.
Jeffries also reduced that rating. American Airlines, Southwest Airlines and Air CanadaThere is an oversized exposure to slowing travel across the US border
Americans also fell by 2%, while Southwest sank more than 5%.
United Airlines It remains Jeffreys’ only purchase airline, the US airline, but has reduced its price target by 48%.
Airline executives at the JPMorgan Industry Conference in mid-March warned of softer-than-expected demand, particularly domestic travel, which accounts for a large portion of the revenues of the US travel industry.
According to a Bank of America report last week, US household credit and debit card spending rose 1.5% as of March 22 last year, while airline spending fell 7.2%.
On Monday, Bank of America Institute wrote in a report that the decline in travel card spending “is likely to be translated into people who have hesitated to book a trip or are considering reducing them,” but added that “severe weather this year and the late Easter are also likely to play a role.”
NYSE ARCA AIRLINE INDEXmainly tracking US carriers, fell 18% in the first quarter, S&P 500′S will decline and mark the biggest decline in sector indexes since the third quarter of 2023.
Fixed: The NYSE Arca Airline Index fell 18% in the first quarter. Previous versions misrepresented the drop.
