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Key Facts & Trends in 2025 Airline Travel
High-income travelers (earning over $150,000 annually) are spending 7% less on airline tickets in the 35 days before May 25, according to Consumer Edge.
Meanwhile, lower-income consumers started reducing their airline spending right after Liberation Day tariffs were announced in April.
In May, however, the trend reversed. The highest-income group’s spending dropped from strong growth to the slowest pace — a possible warning sign for airlines, warns Michael Gunther of Consumer Edge.
Analysts suggest this spending slowdown could signal future bookings, making it an important indicator for the industry ahead of peak travel seasons.
How Are US Airlines Performing in 2025?
This year has been disappointing for US airlines. In January, they expected revenue growth, but by April, concerns over the shaky economy and tariffs made major airlines like Delta, American, Southwest, and JetBlue** withdraw full-year guidance**.
Stock prices reflect this downturn — the Dow Jones US Airlines Index has fallen 13% since January. Shares of United and Delta are down around 11-13%, while American and JetBlue are down about 30-33%.
Will International Travel Stay Strong?
Airlines remain optimistic about international demand. American Airlines expects positive revenue from international flights in Q2, despite some declines from Canada and Europe.
United Airlines reports that U.S.-origin demand has compensated for weaker inbound travel, maintaining a positive outlook for international travel in 2025.
The Impact of a Weaker Dollar on Americans Abroad
However, the US dollar has fallen 6% against foreign currencies year-over-year, making travel abroad more costly. Prices for trips to Europe, Britain, and Japan are higher for Americans, which could discourage some travelers.
Can Premium Seats Save the Day?
Many airlines upgraded their cabins — adding lie-flat seats and luxury features — hoping to boost premium ticket sales. In Q1 2025, airlines still rely on higher-priced seats to offset weaker coach demand.
Delta’s president, Glen Hauenstein, noted premium demand is more resilient than main cabin, especially in a recession. But recent data, particularly from Consumer Edge, hints that even premium travel might slow down, especially after summer.
Bonus: The Hotel Industry’s Outlook
The hotel sector is also feeling the pressure. Forecasts for 2025 now predict only 1% growth in RevPAR (revenue per available room), down from 1.8%, due to weaker leisure and business travel.
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