Shares of the largest U.S. airlines have plunged, wiping out more than $20 billion in market value.

But this is not just a problem for the airline industry.

What is happening is a reflection of one of the biggest economic and political shifts in recent US history – and it could affect all markets.

1- It all started with this bombshell on February 19th:

United Airlines CEO says government travel has plummeted since Trump took office.

This revenue represented more than US$1 BILLION per year for the company.

Apparently Musk's work has started to have an effect

2- The impact was immediate!

In a single month, company shares reacted like this:

•United Airlines: -28.65%
•Delta Airlines: -27.34%
•JetBlue: -27.65%
•American Airlines: -32.40%

3- Next came Delta, which revised its 1Q25 projections downwards:
•Revenue growth dropped from 7-9% to 3-4%
•Operating margins have fallen from 6-8% to 4-5%
•EPS plummeted 50%

Hours later, American Airlines also reduced its projection.

The company now expects a loss of -0.60 to -0.80 per share, while previously it projected up to $0.40 in profit.

The situation got even worse when American Airlines announced capacity reductions in the Washington DC region, one of its most profitable markets.

4- The timeline of these events shows a clear pattern:

•Trump's inauguration

•Massive government cuts (D.O .GE)

•United Announcement on Government Travel

•Delta and American Airlines revising projections

•Stocks plummeting

5- However, investors have begun to understand that the impact goes beyond the airline sector:

📊 Washington DC unemployment claims soared 36% in one week!

📈 The number of layoffs has tripled compared to the 2024 average!

Worse: we have already surpassed 2007 levels

6- The reason?

Since February, the government has cut 62,530 jobs across 17 different agencies.

This represents a 41,311% increase over last year, the largest cut since 2007.

7- The domino effect has reached the real estate market:

🏠 Over 10,000 homes for sale in Washington, DC

📉 Property prices in the region have fallen 21% since November.

The crisis is spreading.

8 - And here is the critical point:

Government workers who stopped traveling are now filing for unemployment benefits.

📈 Orders increased by 400% in the year.

This is the largest increase ever recorded.

This is not a normal adjustment… It is a breakdown.

9- The crisis even extends to government spending:

•A pilot program has already deactivated 200,000 federal agency credit cards.

•In total, more than 230,000 purchase and travel cards are being canceled.
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10- And the trend is expected to continue.

Cuts to government jobs have begun to weigh on the economy. Government employment growth is slowing rapidly.

The context of all this?

Government spending reached almost 34% of GDP – a record outside of a crisis period.

Trump and Musk are scaling back the government. But the impact on markets is just beginning.