More U.S. Airlines Lower Outlook Due to Economic Uncertainty

Key Points

• American, Southwest, and JetBlue have lowered their first-quarter outlooks due to economic concerns.
• Southwest has introduced bag fees for most fare classes to increase revenue amidst lower projections.
• Economic uncertainty, including government mass layoffs and tariff threats, is impacting airline revenues.

Summary

American, Southwest, and JetBlue have adjusted their first-quarter revenue outlooks downward, citing economic uncertainty and specific challenges such as natural disasters and consumer spending slowdowns. Southwest has notably introduced bag fees to boost revenue amidst these challenges. The broader airline industry is grappling with economic issues, including potential government layoffs and trade tariff threats, impacting revenue expectations.