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MarketsMar 11, 2025

The Airline Industry Is Hitting Turbulence As CEOs Sound Alarm on Domestic Travel Slowdown, With $JETS ETF Down 16%

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Turbulence has hit the airline industry, and everyone’s bracing for an emergency landing. The US Global Jets ETF has plummeted 16% over the past month, reflecting widespread concerns throughout the aviation sector. Major airlines, including Delta, American, and Southwest, have all drastically cut their first-quarter forecasts amid what executives describe as rapidly deteriorating domestic demand and consumer confidence.

Delta CEO Ed Bastian acknowledged that “companies started to pull back in terms of corporate spending” and “consumer spending started to stall,” particularly in domestic markets.
American Airlines now anticipates a loss between 60 and 80 cents per share for Q1, citing “softness in the domestic leisure segment” as a key factor in its revised outlook.

Fueling further concerns: While fluctuating oil prices typically drive airline performance, this downturn appears more fundamentally tied to consumer behavior than fuel costs. Despite Brent crude prices recently dipping below $70 per barrel, aviation ETFs continue their descent, suggesting deeper economic challenges at play. As spring travel season approaches — typically a revenue lifeline for carriers — the industry watches nervously to see if hesitant consumers will return to the skies or keep their wallets firmly in the upright and locked position.