---
title: "US airlines face turbulence as uncertainty clouds 2025 outlook: Bernstein"
description: "US airlines are facing challenges as they adjust their 2025 outlook due to guidance downgrades and policy uncertainty, according to Bernstein. Delta Airlines reported a disappointing outlook, while Am"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/231565172.md"
published_at: "2025-03-12T15:32:52.000Z"
---

# US airlines face turbulence as uncertainty clouds 2025 outlook: Bernstein

> US airlines are facing challenges as they adjust their 2025 outlook due to guidance downgrades and policy uncertainty, according to Bernstein. Delta Airlines reported a disappointing outlook, while American Airlines' guidance fell short. In contrast, Southwest Airlines raised its EBIT guidance. Despite current turbulence, Bernstein remains optimistic about the market's potential recovery, citing disciplined capacity management and lower fuel costs as positive factors for airline stocks.

Investing.com --US airlines are grappling with a challenging start to 2025, as guidance downgrades and policy uncertainty weigh on investor sentiment, according to Bernstein.

"Earlier this week we took down estimates for the group to reflect uncertainty in the outlook tied to government spending and policy uncertainty," the firm stated.

After a strong finish to 2024, airlines are adjusting expectations for the first quarter.

"There is a lot going on in the market, and while things are softer, it’s not clear that this softness is the beginning of the end or the beginning of a new round of belt tightening," Bernstein noted.

Among individual carriers, Delta Airlines (NYSE:DAL) delivered a disappointing outlook, with the firm citing "a lower load factor in 1Q" due to "overplayed" yield management.

Meanwhile, American Airlines’ guidance fell below the lower end of its earlier range, a move Bernstein attributed to the airline’s "higher financial leverage." United Airlines (NASDAQ:UAL) maintained guidance but pointed to the low end of expectations.

Southwest Airlines (NYSE:LUV) stood out by raising its 2025 EBIT guidance to ~$1.7 billion, implying a 5.8% margin.

However, Bernstein expressed caution, noting that "bag fees can help, but won’t be 100% incremental to the old plan."

Looking ahead, Bernstein remains optimistic despite near-term turbulence. " The speed and magnitude of the correction - combined with the benefits of more disciplined capacity, diverisfied revene, and the benefits of lower fuel that should come in later this year - makes us think the market has over-corrected to the downside," the firm stated.

They added that improved capacity management in the summer could drive renewed interest in airline stocks. "We remain bullish the legacy carriers," Bernstein concluded.

This content was originally published on Investing.com

### Related Stocks

- [LUV.US - Southwest Airlines](https://longbridge.com/en/quote/LUV.US.md)
- [AAL.US - American Airlines](https://longbridge.com/en/quote/AAL.US.md)
- [DAL.US - Delta Air Lines](https://longbridge.com/en/quote/DAL.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Ameritas Advisory Services LLC Trims Position in Southwest Airlines Co. $LUV | Ameritas Advisory Services LLC has reduced its stake in Southwest Airlines Co. (NYSE:LUV) by 87% in Q3, now holding 5,17 | [Link](https://longbridge.com/en/news/276214426.md) |
| Alaska Airlines pilots’ salaries revealed — and the numbers are shocking | Alaska Airlines pilots have seen significant salary increases due to a new contract, making their pay among the highest  | [Link](https://longbridge.com/en/news/276178165.md) |
| 09:30 ETTBL Team Boxing League Partners with Michael "Harry O" Harris' Our Community First Foundation | TBL Team Boxing League has partnered with Michael "Harry O" Harris' Our Community First Foundation to empower underserve | [Link](https://longbridge.com/en/news/276063197.md) |
| Starlink loss a blow to Russian forces in Ukraine: experts | US tech titan Elon Musk's decision to cut Russian access to Starlink satellites has likely disrupted Russian military op | [Link](https://longbridge.com/en/news/276363254.md) |
| American Airlines seeks approval to operate US flights to Venezeula | American Airlines is seeking approval to operate flights from Miami to Caracas and Maracaibo in Venezuela through its re | [Link](https://longbridge.com/en/news/275934426.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
