Airline stocks lose altitude as consumer sentiment worsens
Mar. 28, 2025 12:40 PM ET Delta Air Lines, Inc. (DAL) Stock, AAL Stock, LUV Stock, ALK Stock, UAL Stock, JBLU Stock, JETS
By: Amy Thielen, SA News Editor
Deteriorating consumer sentiment, fears of a return of problematic inflation, and concerns surrounding a boycott of U.S. tourist destinations are all weighing on the airline sector, causing shares of major players in the sector to lose altitude Friday, driving down the U.S. Global Jets ETF (NYSEARCA: JETS) by 2%, in the red for a fourth consecutive day.
As one of the sectors most vulnerable to economic shocks, airlines have been struggling over the past several weeks as investors digest soft economic data. This includes bad news on consumer spending, an uptick in a key inflation indicator, and a downward revision to the University of Michigan’s consumer sentiment index reflecting American’s heightened worries about the “potential for pain amid ongoing economic policy developments.” This has raised expectations for the Federal Reserve to cut interest rates twice this year to tamp down inflation and avert a recession.
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