📉 Travel Stocks Plunge

The sweeping new tariffs announced by President Trump have raised the risk of recession and the response from financial markets was swift.

View in browser Unsubscribe Friday April 04, 2025 Good morning, readers. Skift Research has maintained that travel has become a more important part of household budgets over the past decade. But make no mistake: It is not recession proof. We still don't expect a recession but the risks of one have risen sharply and below we share our latest reduced forecasts for global travel.    We also tally up the damage to travel stocks as seen by the wreckage in the Skift Travel 200, our proprietary index. Tourism Image by The White House Travel Stock Carnage and Our New – Lower – Forecasts The sweeping new tariffs announced by President Donald Trump have raised the risk of recession and the response from financial markets was swift.  In light of what may turn out to be a slower economy, Skift Research is revising downwards its outlook for global travel. We now forecast 2-5% travel industry growth in 2025, down from our forecast at the start of the year for 6-9% growth. The Skift Travel 200, our proprietary index that measures the performance of the largest publicly traded travel companies in the world, fell 5%. This compounds a weak start to 2025 with the ST 200 down 12.8% this year vs. the S&P 500's decline of 8%. The hardest hit sector this year has been cruise and tours, down 21%.  Get The Full Story On Skift Q&A How Sandals Resorts' New Campaign Champions Caribbean Authenticity Together With   Sandals Resorts By emphasizing its authentic roots, culture, and decades-long presence in the Caribbean, Sandals Resorts aims to remind travelers that it offers more than just luxury — it delivers an experience that is uniquely and unmistakably Caribbean. Get the Full Story On Skift Airlines   Gordon Smith Airline Weekly Editor Image by Adobe Stock/Thiago Thivisan U.S. Airlines Face Uncertainty U.S. airlines are dealing with uncertainty and they've seen their stocks plummet after President Trump announced the latest rounds of tariffs this week. United Airlines shares were down 12%; Delta Air Lines shares fell 9%; and American Airlines was down 8%.  The U.S. Travel Association said it was seeing some "concerning trends," including long visa wait times, concerns over travel restrictions, a question of America's welcomeness, and a slowing U.S. economy. Share prices at Europe's largest long-haul airlines also plummeted on Thursday, including Air France-KLM and IAG, British Airways' parent company. Get The Full Story On Skift Event | May 14-15 Skift Asia Forum The travel industry's top event comes to Bangkok. Skift Asia Forum provides an essential lens into the forces driving change across one of the world's most complex and fast-moving regions. Register Before the Price Increase Airlines   Darin Graham Climate Reporter Image by London Gatwick Airport Airlines Struggle to Hit Net Zero Emissions The International Air Transport Association (IATA), which represents most global airlines, said it was struggling to meet its target of reaching net zero emissions by 2050. The warning comes after some airlines raised concerns last month about the slow production of sustainable aviation fuel, without which airlines have said they can't meet emissions targets.  "Unfortunately, we are being let down. Governments have failed to provide the necessary policy support and financial backing to scale up SAF production, even though they have a playbook at hand with how the wind and solar energy industries expanded," an IATA spokesperson told Skift.  IATA also pointed to another major hurdle in its struggles to reduce emissions: the slow delivery of new, more fuel-efficient aircraft. Get The Full Story On Skift Editor's Picks   Rashaad Jorden Associate Editor/Archivist Hotels Oyo's Strong UK Performance Spurs Ambitious Growth Plans   Tourism Lady Gaga's Singapore Tour Drives Surge in Interest from Indian Travelers Get More News On Skift   Skift Pro       With a subscription to Skift Pro, you get full access to the in-depth reporting, exclusive interviews, and breaking news that me and the rest of the Skift Editorial team produce – as well as the travel industry's premier AI answer engine and Skift Travel 200 stock index. Lock in to a New Monthly Rate Defining the future of travel. Skift. 35 W 31st St., New York, NY, 10001, USA Follow Us: LinkedIn   |  X   |  Facebook   |  Whatsapp   |  Bluesky   |  Threads You received this because you are subscribed to Newsletter | The Daily from Skift. For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. To get updates from Skift direct to your primary inbox, drag and drop this email to that tab.