Airlines have a bird’s eye view of the economy, and CEOs are seeing clouds. Delta Air Lines and Frontier Airlines pulled their 2025 outlooks last week, calling out a murky U.S. economic picture and weaker near-term demand. Airline CEOs are warning about slowing bookings, including weaker corporate travel, citing President Donald Trump’s trade war, mass government layoffs, fewer visitors from Canada and other countries, and more recently, weaker demand for domestic coach seats as price-sensitive consumers grow skittish about planning trips. Consumer sentiment tumbled this month, according to a University of Michigan survey. Bank of America said in a report Thursday that consumer spending on “nice to have” discretionary services like restaurants and tourism slipped in February and March. “I think we’re acting as if we’re going to a recession,” Delta CEO Ed Bastian told CNBC’s “Squawk Box” on Wednesday. “I think everybody is going into a defensive posture.” It’s a sharp change from the start of the year, when Bastian said 2025 was set to be the “best financial year” in the century-old airline’s history. Now, airlines are banking even more on wealthier leisure travelers, a big driver of record revenue in the wake of the pandemic. They’re hoping those consumers will continue to treat themselves to pricier, roomier seats, despite global market turmoil and a more concerning economic picture. Budget travel icon Spirit Airlines last week used a beloved line from Parker Posey’s North Carolinian character in “The White Lotus” in an ad for the carrier’s priciest and roomiest seats.<br/>
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Atlanta’s Hartsfield-Jackson International Airport has once again been crowned the world’s busiest airport. The US hub had more than 108m domestic and international passengers in 2024, according to a new report from Airports Council International (ACI) World. Atlanta has held the top spot every year for 27 years except for during the Covid pandemic in 2020 when China’s Guangzhou Baiyun International Airport claimed the crown. The ACI World data shows that global passenger numbers have finally surpassed pre-pandemic levels at close to 9.5b, up 3.8% from 2019. ACI World Director General Justin Erbacci said despite “global challenges”, the resilience of the world’s busiest airports continues to shine. “These hubs are vital arteries of trade, commerce, and connectivity. As air travel grows, ACI World stands ready to support its members, ensuring the smooth flow of people and goods that drive global economic, social, and cultural progress." Dubai is in second, ahead of Dallas Fort Worth International Airport. The biggest climber is Shanghai Pudong International Airport, vaulting from 21st position in 2023 to 10th.<br/>
Istanbul Airport (SAW), already Europe’s second-busiest hub by passenger volume, is set to begin simultaneous triple independent runway operations starting Thursday. The move will make Türkiye the first country in Europe to implement this advanced aviation system, which allows three aircraft to take off and land at the same time on separate runways. The new system is expected to enhance the airport’s efficiency significantly, reducing waiting times and increasing traffic flow and operational capacity. While similar systems are already in use in the United States, Türkiye will be the first European country to implement such operations. Transport and Infrastructure Minister Abdulkadir Uraloglu emphasized that the initiative would optimize the use of the airport’s runways. “With this system, three aircraft will be able to land and three others take off simultaneously,” he said. He added that the enhanced runway capability will accelerate air traffic flow and boost the airport’s dynamic capacity, strengthening Istanbul Airport’s position as a key hub in Europe.<br/>
Hong Kong International Airport (HKIA) retained its position in 2024 as the world’s busiest cargo airport. Fresh from expanding and adding a third runway, it handled 4.9m metric tonnes of freight, a 3.3% year-on-year increase, according to provisional figures released on Monday by Airports Council International (ACI). It is the thirteenth time since 2010 that HKIA has been named the world's busiest cargo airport, slipping in 2020 because of the Covid-19 pandemic. HKIA is the first airport in the world to attain the full suite of Centre of Excellence for Independent Validators (CEIV) certifications from the International Air Transport Association (IATA) for handling special air cargo, including pharmaceuticals, perishables, live animals and lithium batteries. Since 2017, HKIA has been recognised by the International Air Transport Association (IATA) as a Partner Airport of the IATA’s Centre of Excellence for Independent Validators (CEIV). In cargo handling, Shanghai jumped one spot to second while Memphis slipped to third. Over the first two months of 2025, cargo throughput in HKIA rose by 2.2% to 718,000 tonnes, with transshipments recording the highest year-on-year increase of 9.6%.<br/>
India and China have held one round of talks on resuming direct passenger air services, but no dates have been fixed yet, New Delhi said on Monday, as relations continued to thaw five years after a deadly border clash. The neighbours agreed in January to work on resolving trade and economic differences, in a move expected to boost their aviation sectors, particularly China's which has lagged other countries' in rebounding from the COVID pandemic. "The civil aviation ministry and our counterpart in China have had one round of meetings," Civil Aviation Secretary Vumlunmang Vualnam said at a conference organised by the Indian Chamber of Commerce in New Delhi. There were still some issues to resolve, he added, without going into detail. Relations soured between India and China in the wake of the 2020 clash between troops along their border in the Himalayas, which killed at least 20 Indian soldiers and four Chinese. India imposed restrictions on Chinese companies investing in the country, banned hundreds of popular apps and cut passenger routes, although direct cargo flights continued. Relations have improved since an agreement in October to ease a military standoff on the mountainous border, the same month that President Xi Jinping and Indian Prime Minister Narendra Modi held talks in Russia.<br/>
China has reportedly taken the first step towards creating a commercial flying taxi industry. According to state-run news agency Xinhua, the Civil Aviation Administration of China (CAAC) has approved the country's first-ever passenger drones or flying taxis for commercial use. Once the favourite child of science fiction movies, flying cars have yet to become a full-fledged reality, though several countries are conducting trials and private players have been showcasing working models of air taxis for years. These vehicles are expected to provide an alternate mode of travel, reducing urban traffic and the burden on the roads. EHang Holdins and Hefei Hey Airlines have obtained air operator certificates, clearing both Nasdaq-listed companies to use unmanned aerial vehicles for commercial passenger services, such as sightseeing tours. With the issuance of the air operator certificate, both Ehang Holdings and Hefei Hey Airlines have passed the final hurdle before the commercial operations of their respective passenger air taxi services. As per a report by Citic Securities, both the companies had already obtained the type certificate, production certificate, and airworthiness certificate.<br/>
Australians are increasingly avoiding travel to the US under Donald Trump’s second presidency, fresh data shows, with forecasters expecting tourist numbers to plummet further throughout the year. Official statistics from the US International Trade Administration reveal the number of visitors from Australia in March 2025 was down by 7% compared with March 2024 – a reduction of 4,559 people. This is the largest decline since March 2021, when the Covid-19 pandemic was disrupting international travel. The figures – which count any visit of one or more nights – also show sharp drops in visitors from Europe and other areas, as countries updated their travel advice for the US. Overseas arrivals to the US from all origins dropped 11.6% in March, the government data showed. The downturn in travel following Trump’s inauguration exceeded even the global tourism industry’s worst case predictions, according to travel analytics group Tourism Economics. Aside from the long-term weakness in the Australian dollar meaning more expensive holidays, a string of incidents with US border protocols since January may have left some reconsidering their destination. Guardian Australia last week reported the case of an Australian man with a working visa who was detained and deported on returning to the US. The man alleged border officials called him “retarded” and boasted “Trump is back in town”. Meanwhile, an award-winning Australian comedian cancelled a planned trip to the US after receiving legal advice that she could be stopped at the border due to her previous jokes about the Trump administration.<br/>