The travel industry is heading into the summer blind.
Most U.S. airlines withdrew their financial projections for the full year after the industry showed the first signs that Americans are spending less on travel. The rest of the travel sector is holding its breath to see whether the demand decline will ripple into hotels and online booking platforms.
“Visibility on travel demand has become increasingly muddied,” Melius Research analyst Conor Cunningham said in a note Monday. “The question that likely needs to be answered is how long this uncertainty will last.”
Alaska Air, American Airlines and Southwest Airlines this week withdrew their full-year guidance, following in the footsteps of Delta Air Lines earlier in April. United Airlines was the exception, sharing one outlook that was the same as what it said in January and a lower one that accounted for a recession.
The withdrawn and altered outlooks did little to clarify how other travel companies can expect demand to evolve this year. If uncertainty and economic turbulence snowball, other travel companies will start to feel the effects, Cunningham said.
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