Key Takeaways Jeffereis downgraded American, Delta, and Southwest, sending shares of all three companies lower.The analysts called consumer sentiment "disappointing" and pointed to rising uncertainty around tariffs.

Jefferies turned cautious on the airline sector on Tuesday. The firm warned that consumer sentiment continues to disappoint and pointed out that tariffs, which take effect this week, could impact continue to impact investor confidence.

As previously reported, Jefferies downgraded American Airlines (AAL) to Hold from Buy with a price target of $12, down from $20, as the firm