Airlines Brace for Investor Pressure After Busy but Bargain July 4 Travel

Newark — U.S. airlines are entering earnings season after a record-setting July 4 holiday travel period, but with shrinking fares and uncertain forecasts.

Delta Air Lines will report first on July 10, following a summer of heavy travel. More than 18.5 million people are expected to pass through U.S. airports between July 2 and July 8, according to the TSA. But cheaper tickets are raising concerns.

Domestic round-trip fares are averaging $265, the lowest since 2021, down 3% from last year. International fares have also dropped, with Europe-bound tickets down $100 from 2024, according to Hopper.

Southwest, Delta, American, and Alaska Airlines have all withdrawn their full-year 2025 forecasts. Executives blame economic uncertainty, fading post-pandemic demand, and a softening labor market.

Airlines are now trimming unprofitable routes, especially after summer peaks. Investors are expected to press for signs of recovery or deeper capacity cuts when earnings calls begin.