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Good morning from Skift. It’s Friday, April 4. Here’s what you need to know about the business of travel today.
The sweeping new tariffs announced by President Donald Trump have raised the risk of recession and the response from financial markets was swift, with a sharp decline Thursday in shares in travel companies, as measured by the Skift Travel 200.
Because the risks of a recession have risen sharply, Skift Research is revising downwards its outlook for global travel. We now forecast 2-5% travel industry growth in 2025, down from our forecast at the start of the year for 6-9% growth.
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Next, airlines are dealing with uncertainty and have seen their stocks plummet after President Trump announced the latest rounds of tariffs this week, write Airlines Editor Gordon Smith and Airlines Reporter Meghna Maharishi.
United, Delta, and American Airlines all saw share shares drop at least 8%.
Both Delta and American had already lowered their first-quarter outlooks, citing economic uncertainty. European airlines were also impacted by Trump’s announcement, with shares of Air-France KLM and IAG, among other airline companies, falling on Thursday.
Finally, the airline industry is struggling to reach its target of net zero emissions by 2050, writes Climate Reporter Darin Graham.
Graham notes the warning comes after some airlines raised concerns last month about the slow production of sustainable aviation fuel. Airlines have said they can’t meet the emissions targets without the greener fuel.
An IATA spokesperson told Skift the organization was being let down by the failure of governments to increase the production of the necessary fuel.
