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.  

Beyond cautious consumers, the airline sector faces added pressure from a potential Canadian boycott of U.S. travel destinations, fueled by worsening diplomatic tensions between the two countries. Tariffs and new U.S. travel requirements for Canadians staying longer than 30 days have further strained relations. Last year, Canada led all nations in U.S. tourism, sending over 20 million visitors, followed by 17 million from Mexico. However, travel data provider OAG showed a 70% drop in bookings between U.S. and Canada for the summer season. 

In the past month, shares of United (NASDAQ:UAL) were down 24%, Delta (NYSE:DAL) down 26%, American Airlines (NASDAQ:AAL) down 25%, Alaska Air Group (NYSE:ALK) down 30%, and JetBlue (NASDAQ:JBLU) compared to a -5% decline in the S&P 500. Southwest Airlines (NYSE:LUV) is the outlier among the major carriers, up 9% over the last 30 days.