Airline Earnings At Risk As Demand Dips Amid Weak Business Travel, Low Transborder Traffic, DOGE Cuts: Analyst Says
Benzinga (Thu, 03-Apr 3:43 PM)
Demand in the airline sector weakened throughout the first quarter, with expectations of a tough earnings season featuring lower second-quarter forecasts and reduced 2025 earnings guidance.
Airline stocks are down 24% year-to-date, and BofA Securities analyst Andrew G. Didora notes that demand recovery hinges on achieving macroeconomic stability.
The positive outlook for the airline industry in 2024 was initially based on steady demand, but that has shifted since early February due to factors like macro uncertainty, cuts in DOGE, weaker consumer confidence, poor transborder traffic, stagnating business travel, and slowing transatlantic demand, the analyst writes.
Per Didora, the upcoming first quarter of 2025 earnings season is expected to show weak second-quarter forecasts and lowered 2025 earnings guidance, with analysts adjusting their estimates and price targets.
Also Read: United Airlines’ Starlink Rollout To Boost Regional Aircraft Wi-Fi Speed By 50x
Due to weakening demand and pricing in 1Q25, the airline ...
