A Flying Slump Comes at the Worst Time for Southwest
Budget-conscious travelers are pulling back over concerns about the economy just when the airline is revamping its low-cost model.
Tariff-induced anxiety is hitting the back of the plane.
Photographer: Justin Sullivan/Getty Images
More pain for low-cost airlines is coming as President Donald Trump attempts to reorder global trade with massive tariffs, making passengers who fly toward the back of the plane nervous about their jobs and household finances.
That’s the takeaway from airline earnings conference calls as executives describe wilting demand for “main cabin” airfares, which began in February and has continued into the current quarter. The hit is coming from lower-income leisure travelers while demand for business and international passengers — generally those who pay for premium seats and services — is holding steady, for now.