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Sunday, 27 July 2025
Markets

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

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

People go to the airport through the Newark Liberty International Airport after a news conference by Transport Secretary Sean Dafi, where they announced the reopening of a major runway at the airport, on June 2, 2025, 2025, New Jersey, about two weeks before the schedule in New Jersey.

Spencer Plot | Getty images

Millions of passengers are expected to fly during the July 4 holiday period, but the approach for the remaining year still looks like airlines wrestling with too much flights and is not enough. demand,

“Summer is on sale, which definitely implies low fare,” Southwest Airlines CEO Bob jordan Said in an interview later last month.

In this summer, domestic air fare is an average of $ 265 for a round-trip flight, which is the cheapest since last year and the cheapest since 2021, according to the Fair-Trior Hopper. Aircraft in US inflation in May Report More than 7% was below a year ago.

A host of South -West and other airlines – Delta air lines, American Airlines And Alaska Airlines , Draw their forecasts For 2025 earlier this year, the Trump administration again blame the uncertain economic background again Tariff And a host of other new challenges, such as less foreign visitors To the United States.

Things can no longer be very clear as delta shuts down the airline’s earnings next Thursday, other carriers are ready to report later this month.

“We are stable where we are, but we haven’t seen a divine back,” Jordan said.

In response, the airlines have underlined the plans Cut outless flightsEspecially on the off-pick days after the major summer journey season. The airlines create a large part of their profits in the second and third quarters of the year.

From last Tuesday to next Monday, the Transport Safety Administration stated that it expects a screening of over 18.5 million passengers at US airports, although about 3.1 million passengers going through posts on June 22 are not expected to go to the top, an agency record.

While a sharp economic recession has not become physical, the demand for air travel has not been strong as some industry members in last year or early 2025. On Thursday, American jobs came into data Stronger than expected Despite some signs of Dearcase in labor market A day ago.

“While the wider macro environment has been flexible than apprehension, the overall airline has become tipped in the demand for the overall airline industry,” TD Coven Analyst Tom Fiter.

Read more CNBC airline news

Debit and credit card expenses tracked by Bank of America saw a decline of 11.8% on air travel expenses a year ago in June a year ago in June.

Bank of America analyst Andrew Didora said in Tuesday’s note, “Debit and credit card data for spending on airlines is slightly higher in June/May, so we are not expecting a meaningful sequential improvement in revenue trends.” “We believe that investors will look for comment on any green shooting in demand, and any other comment can be seen positively on 2H25 capacity cuts.”

International trips arising from the US have been a strong corner of air travel and a boon for big global carriers like delta, American and like delta. United Airlines,

But the fare for trips abroad has also decreased. According to the Hopper, international flights from American airports are 4.3% above last summer. Hopper said that the fare from the US to Europe is an average of $ 817, which is about $ 100 from the previous year, and is equivalent to 2019. Flights to Asia were going to $ 1,328 on average in June, July or August, 13% below last year, hopper data shows.

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