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Keep the barf bags handy, people. We're running into some serious economic weather.
President Donald Trump's tariff plans have been causing turbulence in the airline industry.
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A good chunk of the world is none too pleased with America right now, including our neighbors to the north, who aren't happy with Trump's tariffs or his desire to make Canada the 51st state.
Canadians’ leisure travel bookings to American cities dropped 40% in February from a year ago, according to Canadian travel agency Flight Centre Travel Group Canada. The group said in March that one in five of its customers canceled a trip to the U.S. over the past three months.
Delta Air's Bastian: Tariffs 'wong approach'
There are also inflation worries and a tumbling stock market and you can see why air carriers are getting a little airsick.
(Duly noted: Stocks were surging at last check after Trump announced a 90-day pause on tariffs for most countries but increased the levies on China.)
On April 9 Delta Air Lines (DAL) CEO Ed Bastian called Trump’s tariffs “the wrong approach,” CNBC reported. The carrier cut its growth plans and said it can’t affirm its 2025 financial guidance.
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Last month, Delta lowered its first-quarter forecast due to weaker-than-expected demand for corporate and leisure travel.
"With broad economic uncertainty around global trade, growth has largely stalled," said Bastian, who had stated in November that Trump's approach to industry regulation was a “breath of fresh air,”
“In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control," he continued.
"This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.”
Analysts adjust American Air price targets
American Airlines' parent, AAL (AAL) , is also losing altitude. The shares are down 47% since January and off roughly 34% from a year ago.
Investment firms have been adjusting their price targets for American, something that TheStreet Pro's Stephen Guilfoyle learned early on the morning of April 8.
"The news crossed my tape at precisely 04:27 ET this morning," the veteran trader wrote in his recent column. "I posted it to Twitter (or X) a few minutes later."