US President Donald Trump’s Ninety Days Tariff Suspension Sparks Surge in Travel Stocks, Boosting Airlines and Cruise Amid Market Rally, What You Know

Written By: Tuhin Sarkar

Tuhin Sarkar

Tuhin Sarkar is a Senior Journalist at Travel and Tour World with more than 10 years of experience in travel and tourism journalism. A post-graduate in Journalism and Mass Communication from Jadavpur University, he combines strong research, industry knowledge and storytelling expertise to produce engaging, insightful and impactful travel news and fascinating feature stories.

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April 10, 2025 03:48 GMT+5:30

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In a move that has sent ripples through global markets especially in Canada, US, Mexico, South Korea, Japan, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, US President Donald Trump announced a 90-day suspension on most of the sweeping tariffs that had been weighing heavily on the stock market in recent weeks. This unexpected policy shift has led to a remarkable surge in travel-related stocks, with airlines companies like American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, Alaska Airlines, JetBlue Airways, Spirit Airlines, Hawaiian Airlines, Allegiant Air, Frontier Airlines, SkyWest Airlines, Mesa Air Group, Envoy Air, Republic Airways, Piedmont Airlines, Aeromexico, Interjet, Volaris, VivaAerobus, All Nippon Airways (ANA), Japan Airlines (JAL), Peach Aviation, Vanilla Air, Skymark Airlines, Air Canada, WestJet, Porter Airlines, Air Transat and cruise companies like Carnival Cruise Line, Royal Caribbean International, Norwegian Cruise Line, Princess Cruises, Celebrity Cruises, Holland America Line, Disney Cruise Line, MSC Cruises, Costa Cruises, Oceania Cruises, Viking Ocean Cruises, Cunard Line, Regent Seven Seas Cruises, Seabourn Cruise Line, Crystal Cruises experiencing unprecedented gains. United Airlines (UAL) emerged as the top performer in the S&P 500, with shares leaping 25%. Delta Air Lines (DAL) followed closely, with shares up more than 22%. Cruise operators Norwegian Cruise Line Holdings (NCLH) and Carnival Corp. (CCL) saw their stock prices jump 18% and 17%, respectively.​

Delta Air Lines Reports and Strategic Adjustments

Delta Air Lines reported better-than-expected first-quarter results but withdrew its earnings outlook due to uncertainty surrounding tariffs and the economic outlook. CEO Ed Bastian warned that leisure and business travel demand stalled in late February, with consumer behavior resembling patterns typically seen during a recession. This sentiment underscores the sensitivity of airlines and cruise companies to economic slowdowns and fluctuating consumer confidence.​

Market Rally and Investor Optimism

President Trump’s 90-day tariff suspension prompted a broad stock rally, lifting the Nasdaq Composite about 11% and the S&P 500 more than 8%. Investors are optimistic that the pause will provide countries targeted by Trump’s tariffs more time to negotiate, potentially leading to concessions beneficial to U.S. businesses or lower tariff rates. This optimism is reflected in the significant gains observed in travel-related stocks.​

Sensitivity of Airlines and Cruise Companies to Economic Fluctuations

While airlines like American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, Alaska Airlines, JetBlue Airways, Spirit Airlines, Hawaiian Airlines, Allegiant Air, Frontier Airlines, SkyWest Airlines, Mesa Air Group, Envoy Air, Republic Airways, Piedmont Airlines and cruise operators like Carnival Cruise Line, Royal Caribbean International, Norwegian Cruise Line, Princess Cruises, Celebrity Cruises, Holland America Line, Disney Cruise Line, MSC Cruises, Costa Cruises, Oceania Cruises, Viking Ocean Cruises, Cunard Line, Regent Seven Seas Cruises, Seabourn Cruise Line, Crystal Cruises are less directly affected by high tariffs compared to goods-producing companies, their services are highly discretionary. This makes them vulnerable to economic slowdowns and declining consumer confidence, which has recently slumped to its lowest level since 2022. Additionally, U.S. airlines are facing reduced demand from international travelers, some of whom are avoiding American vacations due to the Trump administration’s strained relations with allies like the Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and Canada. Strict immigration policies have also deterred prospective travelers, prompting several countries to issue warnings about traveling to the U.S.​

The 90-day tariff pause has provided a temporary boost to travel-related stocks, reflecting investor optimism about potential trade negotiations and economic stabilization. However, the underlying economic challenges and uncertainties persist, and the long-term impact on the travel, airline, and hospitality sectors will depend on the resolution of trade issues and the restoration of consumer confidence.