Two of Europe’s largest airline groups, Air France-KLM and Lufthansa, have issued cautious warnings about softening demand for travel to the United States among European tourists, citing political uncertainty and concerns over U.S. border policies. The report, originally published by the Financial Times, highlights that while overall travel demand remains resilient, signs of hesitance are beginning to emerge on some of the world’s most lucrative flight routes.
Air France-KLM CEO Ben Smith told analysts this week that a portion of European customers are holding back from booking tickets to the U.S., awaiting more clarity on border and immigration issues. The airline’s CFO, Steven Zaat, further noted a shift in booking trends, with more Americans heading to Europe, while some Europeans are opting out of U.S. travel.
Data presented in the Financial Times shows transatlantic bookings from Europe to the U.S. in May and June have fallen by 2.4% compared to the previous year, even as American tourism to Europe has grown by 2.1%. These trends could prove significant for European carriers, which derive a large share of their long-haul profits from transatlantic flights.
German flag carrier Lufthansa echoed similar concerns, reporting a “slight weakening” in summer bookings from European travelers to the U.S. CEO Carsten Spohr pointed to hesitation particularly among families in Germany, Austria, and Switzerland, who may be reconsidering trips to the U.S. due to the political climate.
“When it comes to vacation trips to the US… it’s easy to imagine conversations around the kitchen table where families are saying, ‘We don’t know yet if we really want to go,’” Spohr said.
In response to the dip in demand, Lufthansa plans to scale back growth on its U.S. routes in the fourth quarter, trimming planned capacity expansion from 6% to 3%. The airline has also set up a dedicated task force to adjust operations if demand weakens further.
While both Air France-KLM and Lufthansa are holding firm on their full-year forecasts and remain optimistic about summer travel overall, investor anxiety remains. Shares in Lufthansa, IAG (the parent company of British Airways), and Air France-KLM have all come under pressure in 2025 due to worries about geopolitical instability and its potential to undermine a post-pandemic recovery in global travel.
The Financial Times also noted that the U.S. recorded a 12% year-on-year drop in overseas visitors in March, underscoring the broader trend. Travel companies beyond the airline sector are reporting similar concerns. Virgin Atlantic has flagged a slowdown in demand from U.S. travelers, and Sébastien Bazin, CEO of hotel giant Accor, described a “bad buzz” around visiting the U.S. in a recent interview with Bloomberg.
Despite these headwinds, Air France-KLM reported improved financial performance in Q1, narrowing its operating loss to €328 million from €489 million a year earlier, with revenue climbing 7.7% to €7.2 billion—boosted by demand for premium cabins.
Lufthansa’s Spohr remains hopeful that as trade tensions ease and clarity improves, bookings may rebound. “We believe that some of these bookings will be recovered in the coming weeks,” he said. “Despite all the geopolitical uncertainties, we remain on course for growth and are optimistic about the summer.”
