ORLANDO, Fla. — Editor’s note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal.
Airlines trim growth plans on weak demand
Industry watchers like consulting giant Deloitte pointed out at the beginning of the year that one threat to the then-strong travel demand was the specter of tariffs.
Well, airlines are finding out they were right. The uncertainty surrounding the back-and-forth rollout of the tariffs — not to mention the expected inflation as a result of the tariffs themselves — has eroded consumer confidence among would-be travelers. Chicago-based United Airlines Holdings Inc. CEO Scott Kirby said during a recent conference call with investors the weaker economic environment has led to softer travel demand.
In response, three major airlines so far — Atlanta-based Delta Air Lines Inc., Dallas-based Southwest Airlines Co. and United — have said they are reducing planned capacity increases later this year. A fourth, American Airlines Group Inc., hasn’t yet make explicit plans to cut growth, but executives said on a recent earnings call they would be ready to do so if needed.
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