Economic uncertainty is setting in for carriers as consumer spending drops.
Aircraft movements at New York LaGuardia Airport. (Photo: AirlineGeeks | William Derrickson)
Airlines are reportedly feeling the brunt of recent economic dips, and over 5,000 jobs have been lost amid financial uncertainty.
According to a recent Wall Street Journal report, Bank of America said customer spending on airlines fell by 7.1% in the week ending March 8.
The drop coincided with recent comments from airline leaders at the J.P. Morgan 2025 Industrials Conference. Notably, CEOs at both United and Delta talked about future capacity cuts.
Several carriers have cut their financial outlooks for the beginning of 2025 due to poor weather, recent aircraft accidents, and less consumer spending affecting revenue.
That reduction in spending also coincides with a drop in the number of airline jobs this quarter.
According to a Tuesday report by the U.S. Department of Transportation’s Bureau of Transportation Statistics, passenger airlines lost 411 employees in January 2025. Combined with cargo airlines, the U.S. airline industry as a whole lost 5,188 workers for the month.
1,159 total jobs were lost during the same period last year.
Despite United recently losing 50% of its government travel, the carrier still led scheduled passenger carriers by adding 791 employees in January. It was followed by Southwest with 194 and Envoy Air with 98 new workers.
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