Airlines including American, Delta, and JetBlue take a beating amid lower airfares and spending softness

The airline industry group of the S&P 500 was the worst performer of the index on Wednesday, with major players including American Airlines, Delta Air Lines, and JetBlue all dropping significantly.

Shares began to fall early on Wednesday following the May CPI report that showed airfares fell 7.3% year over year in May, following a 7.9% year-over-year drop in April.

Stocks dove further after American Express said it’s still seeing weakness in airline spending in the current quarter at the Morgan Stanley US Financials conference.

Major US airline stocks have spent the better part of 2025 in the red as tariff-led fears have sent travel demand falling. Of the big four airlines, which together control about 80% of the US market, only Southwest Airlines shares are near flat on the year — and that’s because investors like the company’s massive cost-cutting spree. Execs have repeatedly warned that continued trade policy uncertainty could lead to a recession.