European Airlines Provide Update on US Travel Demand Amid Trade Wars

Some European airlines are beginning to share the impact of the Trump Administration’s trade wars, with one airline reporting slowing demand and another reporting no change. 

Reuters reported that British airline Virgin Atlantic is seeing a slowing demand in the United States after a strong beginning to the year. 

In contrast, the CFO of German airline Lufthansa told the newspaper Boersen-Zeitung that the airline hasn’t experienced a decline in bookings to and from the United States. 

“Our important transatlantic business continues to look very good,” said Till Streichert of Lufthansa.

Germany was one of several European countries that recently updated its travel advice for citizens heading to the United States after several Germans were detained without cause at entry to the United States.  

Several airlines within the United States reassessed and lowered their profit forecasts for at least the first quarter of 2025, largely due to the prospect of economic pressures caused by the trade wars and recent safety concerns within the American airspace. A Tourism Economics report found that an escalating trade war could cost the United States billions in tourism spending. 

Canadian airline WestJet also noted that the trade war and “Buy Canada” movement is already discouraging Canadians from visiting the United States. 

A new report from IATA also found that in February, when air passenger demand reached record levels for every other region of the world, it decreased in North America, mainly due to “the current concerns of US consumers regarding policy and economic factors.” 

Still, IATA’s Director General, Willie Walsh, didn’t express concern about the trade war impacting travel: “It’s additional uncertainty which we never welcome but we’ve always been able to manage.” 

He said the Trump Administration will likely encourage consolidation, which he thinks would be a “net positive” for airlines.