Major U.S. airlines including Delta, American, United, and Southwest have lowered their revenue and profit forecasts for the first quarter of 2025, citing a significant drop in domestic travel demand. The airlines attribute this decline to economic uncertainty and reduced consumer and corporate confidence. Delta Air Lines reported a 7.3% drop in its stock price after cutting its earnings outlook due to weaker U.S. demand, which has fueled recession concerns. American Airlines also revised its guidance, expecting a loss per share of between 60 and 80 cents for the first quarter, a significant adjustment from its previous forecast. The downturn in travel demand is seen as a broader indicator of economic health, with airlines noting a particular decrease in government-related travel. United Airlines mentioned a 50% reduction in government bookings, which has also affected the domestic leisure market. In addition to economic factors, recent air disasters, including a deadly midair collision on Jan. 29 in D.C. that killed 67 people and a Delta jet flipping over on Feb. 17 in Toronto, where 80 passengers survived but 21 were injured, have contributed to the decline in consumer confidence in air travel. Delta CEO Ed Bastian, American CEO Robert Isom, and United CEO Scott Kirby discussed these issues at the JPMorgan conference.