There is nothing an economy hates more than uncertainty, and right now, there is a lot of uncertainty in the economy.
With the president imposing tariffs on goods from Canada, Mexico, China, and the European Union, Americans can expect to pay more for just about everything. On top of that, inflation is driving up the prices of everyday goods.
This type of economy is never good for Disney’s domestic parks. Canadiens, who are the second-largest block of international visitors to Disney World, have vowed not to return to the United States to retaliate against Trump’s tariffs.
However, with domestic travelers also cash-strapped, Disney Parks could see a dramatic downturn in attendance, and this latest news will not help their situation.
Three major American airlines announced this week that they are cutting their projected revenues for the first quarter of 2025 after decreased demand. They cited lower consumer confidence over fears of a recession and increased costs of items due to tariffs.
Delta, Southwest, and American all warned investors that their earnings would be down this quarter. As a result, travel-related stocks, including Disney, were down.
Delta CEO Ed Bastian said:
We saw companies start to pull back in terms of corporate spending — started to stall. Consumer spending started to stall. Largely domestic, largely in the close-in. But it was also exacerbated, as you know, the uncertainty that’s out there and consumers in a discretionary business do not like uncertainty.
With airline travel declining, demand for the Walt Disney World Resort could be lower. The majority of Disney World’s visitors come from outside Central Florida, arriving via Orlando International Airport.
This lower demand comes at a bad time for Disney, which is awaiting the impact that the opening of Epic Universe will have on Disney World. The early reviews for Epic Universe have been outstanding, while Disney World is mostly a construction zone for now.
Even a slight softening of demand will hurt Disney’s bottom line, especially now that it is pouring billions into updating its parks. Perhaps this would be a good time for Disney to consider lower prices or not.
The post In a Blow to Disney Parks, Three National Airlines Are Bracing for a Recession appeared first on Inside the Magic.
