'The Canary Is Sick Already': Airlines Brace for Softer Demand

Airlines’ post-pandemic growth will be tested as tariffs, mass layoffs within the federal government, and weakened international demand continue to create economic uncertainty.

The post-pandemic boom for the airline industry could come to an end as tariffs, a sinking stock market, and declining consumer confidence weaken travel demand.

At the start of the year, analysts expected strong results — premium and international travel would continue to be healthy, corporate travel was slowly bouncing back, and even domestic travel was starting to make a comeback.

But now, the latest round of sweeping tariffs from the Trump administration has sparked fears of a potential recession. Some Wall Street leaders have already declared the U.S. is in a recession.

“One CEO specifically said the airline industry is a proverbial bird in a coal mine — canary in the coal mine — and I was told that the canary is sick already,” said BlackRock CEO Larry Fink a