Airlines bank even more on splurging vacationers as clouds form on economy

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/>