Airlines, Cruise Stocks Soar on 90-Day Tariff Pause

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Airlines, Cruise Stocks Soar on 90-Day Tariff Pause.

stock :: 2025-04-10 :: source - investopedia

By Colin Laidley

Jonathan Raa / NurPhoto / Getty Images

Travel stocks soared Wednesday afternoon after President Trump announced a 90-day pause on most of the sweeping tariffs that have been weighing on the stock market for the last week.

United Airlines (UAL) was the best-performing stock in the S&P 500 Wednesday, with shares leaping 25% in recent trading. Delta Air Lines (DAL) was close behind; its shares were up more than 22%. Cruise operators Norwegian Cruise Line Holdings (NCLH) and Carnival (CCL) jumped 18% and 17%, respectively.

Delta on Wednesday reported better-than-expected first-quarter results but pulled its earnings outlook in light of uncertainty about tariffs and the economic outlook. CEO Ed Bastian warned that leisure and business travel demand stalled in late February, and said recent consumer behavior resembled what would be expected during a recession.

Trump’s 90-day tariff pause prompted a broad stock rally, lifting the Nasdaq Composite about 11% and the S&P 500 more than 8%. Investors are hoping the pause gives countries targeted by Trump’s tariffs more time to negotiate, which could lead to concessions beneficial to U.S. businesses or lower tariff rates.

Airlines, Cruise Companies Sensitive to Slowdowns

Airlines and cruise operators are less directly affected by high tariffs than companies that produce and sell goods. But their services are highly discretionary, making them vulnerable to economic slowdowns and cratering consumer confidence, which has recently slumped to its lowest level since 2022.

U.S. airlines are also facing lower demand from international travelers, some of whom are forgoing American vacations in light of the Trump administration's antagonism toward U.S. allies like the European Union and Canada. Trump's severe crackdown on immigration has also put off some prospective travelers and prompted several countries to issue warnings about traveling to the U.S.