Two of Europe's largest airlines warn that some Europeans are starting to avoid our travels because President Donald Trump's policies are at risk of hitting the world's busiest flight paths.
France-KLM and Lufthansa reported this week that demand for transatlantic routes by European passengers has weakened, although they say the impact is limited.
As the airline reported quarterly results, as the airline told analysts on Wednesday: “We know there are a lot of customers who are buying tickets so that they can be clearer…the borders and things like that.”
Its chief financial officer Steven Zaat said booking patterns have changed as demand for American travelers flying to Europe grows, while some Europeans travel far away from the United States.
European transatlantic bookings fell by 2.4% in May and June compared to the previous year. Travel in another direction driven by high-spending American tourists grew 2.1%.
Amid economic tensions and fear of hostile borders, the signs of travelers avoiding the United States pose a threat to major European long-haul airlines that rely heavily on their lucrative transatlantic routes.
Barclays analysts estimate that US services account for at least 10% of the profits of Europe’s three major “stellar bearers”: British Airways owners IAG and France-klm Lufthansa.
Lufthansa CEO Carsten Spohr also said Tuesday that some European passengers showed hesitation when booking transatlantic trips. The German airline reported that bookings in busy summer bookings were “somewkish”, especially for our trip.
"When you are on vacation in the United States, especially on vacation trips from Germany, Austria and Switzerland markets, it's easy to imagine the conversation around the kitchen table, where family members say, 'We don't know yet if we really want to go."
Spoel said the airline will reduce its planned growth in transatlantic flights from 6% to 3% in the year in the fourth quarter, but he hopes demand will rebound.
He added: "The discussion about tariffs is no longer as intense as it was four weeks ago. That's why we think some of these bookings will be recovered in the next few weeks."
Lufthansa said it has established a "task team" to "quickly and flexibly respond to any weak demand", including cutting flight schedules.
Shares of Lufthansa, IAG and France-KLM have been under pressure this year as investors worry about the impact on these routes and the broader threat to the pressure on demand for flights by the slowdown. The Financial Times reported this month that the total number of overseas visitors traveling to the United States was in March, down 12% in the year.
Several other travel companies also warned that demand for transatlantic routes had been hit. Virgin Atlantic noted that demand for American travelers slowed, while Sébastien Bazin, CEO of French hotel giant Accor, told Bloomberg that the “bad buzz” surrounding the U.S. visit.
But France - KLM and Lufthansa are more optimistic about the travel outlook this summer, sticking to their full-year forecast even as they warn of geopolitical-driven uncertainty.
"Despite all geopolitical uncertainty, we. are still growing, staying optimistic about the summer and sticking to our positive outlook for 2025," Spohr said.
France-KLM Airlines reported lower losses in the first quarter on Wednesday. The aviation group reported operating losses in the first quarter of the year were €328 million, down from €489 million a year ago.
Revenue rose 7.7% to €7.2 billion, driven by strong demand for its business and top-notch cabins.
Data visualization by Alan Smith