Declining US dollar threatens transatlantic flight revenue

The U.S. airline industry has seen a sharp decline in performance recently, dropping nearly 40% compared to the broader market. This follows a period of optimism where airlines like Delta and United expected record profits in 2025. A significant factor in this downturn is the recent devaluation of the U.S. dollar, which has fallen over 4% against other currencies. This decline makes international travel more expensive for Americans, particularly to Europe, where the Euro has strengthened. As a result, airlines that rely heavily on transatlantic flights may face financial challenges. The increased cost of travel could deter premium travelers, impacting revenue for major carriers like Delta and United.