United Airlines CEO Supports Trump’s Tariff Plan Amid Travel Sector Uncertainty
United Airlines CEO Backs Trump’s Tariff Plan Amid Travel Sector Uncertainty
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In a surprising endorsement, United Airlines CEO Scott Kirby has expressed support for former President Donald Trump’s controversial tariff plan, despite the turbulence it may bring to the travel industry. Speaking at the Semafor World Economy Summit on Thursday, Kirby urged stakeholders to remain calm, likening the situation to a chess game with many moves yet to unfold.
“We should all take a breath,” Kirby stated. “It was just the first move in a chess game, and there are a lot of moves left to come.” He emphasized that Trump’s approach stems from a genuine desire to improve the lives of middle-class Americans and create sustainable job opportunities.
Kirby highlighted the potential for job growth in sectors like aviation, where employees can enjoy long-term careers with six-figure salaries after achieving seniority. This sentiment aligns with Treasury Secretary Scott Bessent’s assertion that the tariffs are part of a broader strategy to bolster U.S. manufacturing jobs.
However, the implications of these tariffs are complex. While they may create jobs, they are also expected to drive up inflation and diminish the dollar’s purchasing power, potentially leaving consumers with less disposable income. This could lead to reduced travel demand, a concern echoed by other airline executives.
Airlines Face Uncertain Future
The airline industry is already feeling the impact of tariff-related uncertainty. United Airlines recently communicated to Business Insider that they had reached out to a frustrated passenger, reflecting the growing concerns among travelers. Airline stocks have been volatile, as travel is often one of the first expenses consumers cut back on during economic uncertainty.
Kirby noted that while customers have not yet abandoned their summer travel plans, some may be exercising caution. Airlines have warned of reduced travel demand and have begun cutting flights in response to the shifting economic landscape. In its first-quarter earnings report, United described the economy as “impossible to predict,” setting two profit forecasts for the year—one optimistic and one pessimistic, depending on potential recession impacts.
American Airlines has also withdrawn its full-year guidance, citing economic unpredictability. CEO Robert Isom remarked on the decline in domestic leisure travel, while Delta Air Lines has halted plans for capacity expansion, with CEO Ed Bastian acknowledging that “growth has largely stalled.”
Despite these challenges, Kirby’s optimistic outlook may provide a glimmer of hope for investors. As the world’s largest airline by fleet size, United’s performance is closely watched, and its resilience could inspire confidence in the broader industry.
Looking Ahead
As the airline sector navigates these turbulent waters, the long-term effects of Trump’s tariff plan remain to be seen. With Boeing facing challenges in delivering jets to China due to the tariffs, the ripple effects of these policies could reshape the aviation landscape for years to come.
In the meantime, Kirby’s call for patience and strategic thinking may be the guiding principle as airlines brace for what lies ahead. As the chess game continues, all eyes will be on how these moves will impact the travel industry and the economy at large.