The big four US airline stocks have collectively shed about $24 billion in value over the past month
Delta, United, American, and Southwest have all sunk in the past 30 days as tariffs send investors running.
The seatbelt sign hasn’t turned off for a solid month at the big four US airlines.
The market caps of Delta Air Lines, United Airlines, American Airlines, and Southwest Airlines have fallen by roughly $24 billion combined over the past month. Together, the companies control roughly 80% of the US market when accounting for their regional partners.
For context, that’s about the equivalent of losing a Best Buy plus a Mattel, three-ish years of Delta’s Amex credit card income, or roughly 180 737 Max 10s.
Delta, United, and American have dropped by more than 28% each since early February, while Southwest has shed more than 7%. JetBlue, Spirit, and Alaska Air shares are also down significantly.
Sending the oxygen masks down: Trump administration tariffs, which certainly haven’t helped an industry already plagued by accidents this year.
25% levies on steel and aluminum, materials that are key to making things that fly, are set to go into effect on Wednesday. It’s estimated those tariffs could hike the production cost of a narrow-body aircraft by up to $2.5 million. Other duties (delayed or not) have Wall Street fearing a downturn in discretionary spending and travel.
Depending on how long tariffs last, the airline manufacturing supply chain could be in for rough skies. Carriers may lease more jets (as opposed to buying them outright), sending leasing rates higher. Ultimately, that could bump up ticket prices for passengers.
Understandably, the aviation industry isn’t thrilled about the situation. Boeing, which itself is down more than 18% over the past month, could be hit harder than its European rival Airbus due to retaliatory tariffs. The Airbus CEO called the levies a “lose-lose” late last month.
