Many investors avoid airline stocks due to their volatility, which can be triggered by the health, or lack thereof, in the broader economy. In 2025, investors are navigating crosscurrents that are making the outlook for airline stocks unclear.
For example, the cost of jet fuel dropped during the summer. That would normally be bullish, except that many airlines indicated that the decline was due to lower demand. It’s the first sign that the travel boom that began in late 2021 is starting to wind down, particularly among lower-income consumers, who are referred to as the back-of-the-cabin passengers.
