U.S. airlines were flying high less than two months ago on talk of a new golden age, as strong travel demand and tight industrywide capacity raised the prospect of a multiyear profit boom.

But U.S. President Donald Trump's broad tariffs and a crackdown on government spending have upended that optimism. Tourists and companies have reduced spending amid rising economic uncertainty, forcing carriers to cut their first-quarter profit forecasts.

With travel a discretionary item for many consumers and businesses, growing odds of weak economic growth and high inflation have clouded the outlook for the remainder of the year as well.