Airlines face investors after strong— but cheaper — July 4 holiday

Delta Air Lines is set to kick off U

Airlines' quarterly reports on July 10

Record travelers are taking to the skies, but fares have dropped

People move through Newark Liberty International Airport ing a news conference by Transportation Secretary Sean Duffy at the airport, where he announced the reopening of a major runway at the airport, nearly two weeks ahead of schedule on June 2, 2025 in Newark, New Jersey

Spencer Platt | Getty ImagesMillions of travelers are expected to fly over the July 4 holiday period, but the outlook for the rest of the year still looks murky as airlines wrestle with too many flights and not enough demand. "The summer is on sale, which certainly implies lower fares," Southwest Airlines CEO Bob Jordan said in an interview late last month

Domestic airfare this summer is averaging $265 for a round-trip flight, down 3% over last year and the cheapest since 2021, according to fare-tracker Hopper

Things might not be much er now as Delta kicks off airline earnings next Thursday, with other carriers set to report later this month. "We're stable where we are, but we have not seen an inflection back," Jordan said

In response, airlines have outlined plans to cut unfitable flights, particularly on off-peak days after the major summer travel season

Airlines make the bulk of their fits in the second and third quarters of the year

From last Tuesday through next Monday, the Transportation Security Administration said it expects to screen more than 18. 5 million travelers at U

Jobs data came in stronger than expected despite some signs of a slowdown in the labor market a day earlier. "While the broader macro environment has been more resilient than feared, overall airline industry demand has been tepid," TD Cowen analyst Tom Fitzgerald said in a Wednesday note

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Slumps, but Americans can’t stop traveling overseasGoodbye to 'bags fly free' on Southwest, the last free perk in AmericaDebit and credit card spending tracked by Bank of America showed an 11. 8% decline on air travel spending last month from a year earlier in June, after five months of year-on-year declines. "Debit and credit card data for spend on airlines has been down slightly more in June than April/May, so we are not expecting a meaningful sequential imvement in revenue trends," Bank of America analyst Andrew Didora said in a Tuesday note. "We believe investors will be looking for ary on any green shoots in demand, and any further ary on 2H25 capacity cuts could be viewed positively. "International trips originating from the U

Have been a strong corner of air travel and a boon for big global carriers Delta, American and United Airlines

But fares have eased for trips abroad, too

International flights from U

Airports are up 4. 3% from last summer, according to Hopper

To Europe are averaging $817, down almost $100 from last year, and on par with 2019, Hopper said