Major airlines and hotel chains in the United States are among the first to feel the impact of the economic and immigration policies implemented by Donald Trump's administration. The introduction of new tariffs, uncertainty surrounding international trade, and stricter border controls are leading to a decline in travel demand, delivering a substantial blow to the tourism industry.
In less than two months, shares of Delta Air Lines, American Airlines, and United Airlines have plummeted between 35% and 36%, despite starting the year with signs of recovery. According to La Vanguardia, in addition to the airline sector, major hotel chains such as Marriott, Intercontinental, and Hilton have seen their stock values drop by 17% to 22%.
The lack of consumer confidence and fears of a recession are directly influencing Americans' spending habits. "Tourism isn't a priority during economic uncertainty," stated David Neeleman, CEO of Breeze Airways, referring to the decline in travel consumption.
Companies like Delta and United have announced plans to cut back on operational capacity if conditions do not improve, with United considering early retirement for part of its older fleet as an adjustment measure. Canadian airlines have also reduced flights on cross-border routes amid heightened bilateral tensions.
Tighter immigration policies are another significant factor weighing on the industry. Reports of visitors encountering issues at the border and canceled trips from Canada, in response to the U.S. government's new stance, reinforce the image of a less welcoming destination.
The ripple effect extends to Europe, where companies such as IAG, the parent company of Iberia and British Airways, have experienced significant market declines this month. The Lufthansa Group has faced similar challenges, although they continue to maintain routes to the United States. Overall, the European tourism sector has seen an 11% reduction in market value in March.
The pressure on tourism businesses is mounting within a framework of policies that have disrupted the usual flow of travelers and the global economic climate. Analysts warn that if these policies persist, further rounds of corporate adjustments may be imminent.
Impact of U.S. Policies on Airlines and Hotels
How have airlines been affected by Trump's policies?
Airlines such as Delta, American, and United have seen their stocks drop significantly, between 35% and 36%, due to decreased travel demand stemming from new tariffs and stricter border controls.
What impact have these policies had on hotel chains?
Major hotel chains like Marriott, Intercontinental, and Hilton have experienced a decline in stock value ranging from 17% to 22%, attributed to reduced consumer confidence and spending.
Why are companies considering operational reductions?
Companies are contemplating operational reductions, such as cutting fleet capacity, due to the ongoing decline in travel demand and the uncertainty of the economic landscape.