Airlines bank even more on splurging vacationers as clouds form on economy

Leslie Josephs - CNBC - 14/04
Carriers are hoping that wealthier leisure travelers will continue to treat themselves to pricier, roomier seats.
A view from the Delta Sky Club at Los Angeles International Airport, Sept. 2, 2022.
AaronP | Bauer-Griffin | GC Images | Getty Images

Airlines have a bird's eye view of the economy, and CEOs are seeing clouds.

Delta Air Lines and Frontier Airlines pulled their 2025 outlooks last week, calling out a murky U.S. economic picture and weaker near-term demand.

Airline CEOs are warning about slowing bookings, including weaker corporate travel, citing President Donald Trump's trade war, mass government layoffs, fewer visitors from Canada and other countries, and more recently, weaker demand for domestic coach seats as price-sensitive consumers grow skittish about planning trips.

Consumer sentiment tumbled this month, according to a University of Michigan survey. Bank of America said in a report Thursday that consumer spending on "nice to have" discretionary services like restaurants and tourism slipped in February and March.

"I think we're acting as if we're going to a recession," Delta CEO Ed Bastian to...
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