Receding travel demand hits airlines' profits

Given the rapid drop in airline shares this year, some analysts say the worst for the sector may be over

Airlines are experiencing a reversal from the post-pandemic rush, when ticket prices soared as people splurged on holidays after two years of home confinement, in what was dubbed 'revenge travel'.

Just as the annual summer vacation gets underway in Europe, airlines in the region are feeling a cold chill wafting over the Atlantic from their US counterparts.

On Wednesday, United Airlines Holdings became the latest carrier to warn of weakening profitability, joining the likes of Alaska Airlines Group and Delta Air Lines in offering a muted outlook. Airlines have warned of falling ticket prices amid a fare war that’s weighing on their profit, hurting carriers during a time of the year that normally marks an industry peak.