U.S. airline stocks decline amid lowered profit forecasts

Published 11/03/2025, 14:14
© Reuters.

Investing.com -- Major U.S. airline companies including American Airlines Group (NASDAQ:AAL) Inc., Delta Air Lines Inc (NYSE:DAL)., and Southwest Airlines (NYSE:LUV) Co. have seen a drop in their stock prices following announcements of lower-than-expected financial performances for the first quarter of the year.

American Airlines Group Inc. has warned of a larger first-quarter loss than initially predicted due to a slump in leisure travel demand and the repercussions of a fatal crash involving one of its planes in Washington.

Similarly, Delta Air Lines Inc. has reduced its profit forecast for the first quarter by approximately half, citing a decrease in travel demand. This revision serves as a recent indicator that economic concerns are affecting consumer expenditure.

Southwest Airlines has also adjusted its unit revenue guidance for the first quarter downwards. The airline attributed this to a higher-than-anticipated completion factor, reduced government travel, and a more substantial impact from the California wildfires than was initially calculated.

In a significant policy shift, Southwest Airlines Co. will also commence charging passengers for certain checked luggage. This move marks the end of a free-bag policy that has been a distinguishing feature of the airline since its establishment over fifty years ago.

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