- Despite the economic uncertainties related to tariffs, Air France-KLM reported an increase in American travelers heading to Europe.
- In the meantime, reservations from Europe to the U.S. have decreased.
- The demand for American travelers heading to Europe continues to increase, yet this trend might not persist according to certain experts.
People from Europe might be becoming less interested in traveling to the U.S.
, but Americans continue to be enthusiastic about crossing the Atlantic by air — at least for now.
Air France-KLM,
The continent’s second-biggest carrier based on income reported on Wednesday that flight reservations from Europe to the US for May and June are down 2.4% compared to the previous year. Conversely, booking numbers going the other way have increased by 2.1%.
It appears that Europeans are seeking out destinations beyond their continent for their summer getaways. Airline reservations from Europe to other parts of the globe have risen by 9.2%, whereas bookings moving in the opposite direction have increased by only 7.3%.
“Despite facing turmoil, Europe continues to hold strong as inflows from both the U.S. and global sources show an increase when compared to last year,” CEO Ben Smith stated during Wednesday’s earnings call.
Germany’s
Lufthansa,
The largest airline in Europe based on revenue is experiencing comparable patterns.
During a Tuesday earnings call, CEO Carsten Spohr stated that Americans are showing greater willingness to spend compared to their European counterparts, leading to more robust growth for the airline group within the U.S. market as opposed to other regions.
He stated, “There has been a slight decline in bookings for travel to and from the US.”
Stricter immigration policies in the U.S. are causing Europeans to consider traveling to alternative destinations.
During an interview with Bloomberg, the CEO of hospitality company Accor discussed decreasing reservations attributed to negative publicity, along with additional reports of decline.
People from Europe were denied entry at the U.S. border.
.
For instance, France’s Minister of Higher Education informed Agence France-Presse that a scientist had their entry into the U.S. refused because they were discovered to have sent messages disparaging Donald Trump.
The president’s
The tariff plan has likewise created economic instability.
In these situations, travel often endures as one of the initial sacrifices since it is not essential for spending and is quite simple for customers to skip.
Nevertheless, individuals have shown greater readiness to spend money on experiences since the pandemic ended, with luxury seating options for pleasure trips proving particularly robust.
This could be attributed to Americans, as they typically earn around 35% more compared to their French counterparts on average. Additionally, France has become an especially favored holiday destination for Americans, notably post-pandemic.
However, considering the ongoing economic instability and the partial effects of tariffs, several experts believe that airlines may face even tougher times ahead.
“As of now, both U.S. airlines and Lufthansa have indicated strong resilience in high-end leisure travel demand. However, we maintain our view that this trend will likely diminish because of economic impacts,” noted Andrew Lobbenberg, a Barclays analyst, in his report released on Tuesday.
The next day, in an additional note, he mentioned that Barclays analysts have a negative outlook on transatlantic routes.
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