Airlines face investors after strong— but cheaper — July 4 holiday

Millions of travelers are expected to fly during the holiday period of 4 July, but the appearance of the rest of the year seems to be blurry because the airlines wrestled with too many flights and there is not enough demand.

“Summer on sale, which definitely implies lower wages,” Southwest Airlines CEO Bob Jordan said in an interview at the end of the last month.

According to Mouse-Tracker Hopper, local air tickets this summer are $ 265 for a round-trip flight that is the cheapest since last year and the cheapest since 2021. Flight Ticket in May Inflation report It fell more than 7% compared to a year ago.

Southwest and a number of other airlines – Delta Air Lines– American Airlines And Alaska Airlines -Earlier this year, he attracted his tahmines for 2025, and he blamed the Trump administration’s re -tariffs and a series of new difficulties, such as less overseas visitors to the United States.

Delta may not be much clearer because it launches airline earnings next Thursday, and other carriers will report later on this month.

“We’re stable where we’re, but we didn’t see a twist,” Jordan said.

On the other hand, the airlines summarized their plans to cut off unprofitable flights, especially on intense days after the big summer travel season. Airlines make most of the snow in the second and third quarter of the year.

The transportation safety administration between the next Mondays last Tuesday, expects more than 18.5 million travelers at the US airports, but is not expected to undertake a single day due to approximately 3.1 million passengers passing through the checkpoints that are an agency record on June 22.

Although a sharp economic decline was not realized, the demand for air travel was not as strong as some of the expected industry members expected last year or at the beginning of 2025. However, symptoms of slowdown in the labor market emerged.

“Although the wider macro environment is more resistant than feared, the demand for the general airline industry was warm.” He said.

Debt and credit card expenditures monitored by Bank of America decreased by 11.8% in the last month compared to the previous year compared to the previous year.

“Debt and credit card data fell slightly in June/May in June/May, so we do not expect a significant sequential improvement in income tendencies,” Bank of America analyst Andrew Didraa said. He said. “We believe that investors will look for comments about any green exile in demand, and other comments about 2H25 capacity cuts can be seen positively.”

International trips from the United States have been a powerful corner of the air journey and a blessing for large global carriers such as Delta, American and, such as Delta, American, and. United Airlines.

However, fees have also made it easier for trips abroad. According to Hopper, international flights from US airports increased by 4.3% than last summer. Hopper said that the average wages from the United States to Europe has dropped an average of $ 817, approximately $ 100 from last year and equal to 2019. Hopper DATA, flights to Asia in June, July or August decreased by 13% to $ 1,328.