American Airlines' 1Q outlook causes airline stocks to drop.

American Airlines' lackluster Q1 outlook has caused airline stocks to tumble amid fears that travel demand, which has surged for the past year, could finally be slowing in the face of inflation and economic uncertainty. While American indicated that demand is still about as strong as it predicted in January, analysts have cautioned investors about a slowdown in travel bookings, particularly for travel within the United States. Despite rising costs for labor and jet fuel prices, airlines say demand for travel remains strong, which helps them charge more.