Airlines expect a strong tailwind from travel demand in 2025, even as the industry faces a capacity crunch
ByDAMIAN J. TROISE AP business writer
January 29, 2025, 4: 50 PM
NEW YORK — Airlines expect a strong tailwind from travel demand in 2025, even as the industry faces a capacity crunch.
United Airlines, Delta Air Lines and several other U.S.-based carriers have all given investors strong forecasts for the year. Wall Street expects major airlines to increase revenue and profit in 2025. Lower jet fuel prices have also helped brighten those forecasts.
Delta Air Lines CEO Ed Bastian said the airline is already on track for the best “financial year” in its history.
“The U.S. consumer is financially healthy and continues to prioritize spending on experiences,” he said, following the airline’s latest quarterly earnings report.
Consumer spending remained strong across most goods and services in 2024. Air transportation was among the stronger categories, with spending increasing each month through November, according to the data on personal consumption expenditures.
Airlines were among 2024’s biggest gainers on Wall Street, with Delta’s stock rising 50% and United Airlines more than doubling. Most airline stocks have