Flying Cheaper, but Airlines Still in Turbulence

The July 4 holiday saw a lot of people flying, but airlines are still not sure what the rest of the year will bring. Many flights are cheaper now, but that doesn't mean things are going well for the airlines. Domestic flights this summer cost about $265 round-trip. That's a bit cheaper than last year and the lowest since 2021. But even with lower prices, airlines like Southwest, Delta, American, and Alaska have pulled their forecasts for 2025. They say the economy is too uncertain, with things like tariffs and fewer international visitors making it hard to plan. Airlines are now cutting flights that aren't making money, especially on days when fewer people travel. Most of their profits come from the summer months, so they're focusing on that. Over the July 4 week, the TSA expects to screen more than 18. 5 million travelers. But even with all these people flying, demand hasn't been as strong as expected. The economy isn't in a sharp downturn, but it's not growing much either. Analysts say the overall demand for air travel has been weak. Even though the economy is doing better than feared, airlines are still struggling to fill seats.