Tuesday, March 4, 2025
HomeTravelThe economic problems of airline inventory are rolling | Real Time Headlines

The economic problems of airline inventory are rolling | Real Time Headlines

The United plane is visible on July 16, 2024 at Newark Liberty International Airport in Newark.

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NYSE ARCA Airline Index vs. S&P 500 Index

Airlines, especially full-service airlines with large international networks, are a highlight due to strong demand and savings on domestic flight growth, but some analysts now expect potential demand to impact, especially for price-sensitive customers ahead of the crucial spring travel season.

The U.S. Department of Commerce said last week that U.S. consumer spending fell for the first time in nearly two years. In early February, it Retail Report Since one month ago, it has shown a greater than expected decline.

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“While we continue to remain constructive in the supply context – we still think this is favorable, our attention has shifted to what seems to be emerging economy’s soft quality,” Deutsche Bank said in a report on Tuesday. “However, it is not clear what extent and duration it will be, and we do think it may be approved based on the demand for air travel, especially domestically as appropriate.”

The bank said there was no sign of weakness in the company or long-distance international travel.

“The business is really strong,” United Airlines CFO Mike Leskinen said at the Barclays industry conference last month. “International leisure is very strong. Family leisure is good. Very good. That’s what we expected.”

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