Latest news with #CarstenSpohr
Business Insider
01-05-2025
- Business
- Business Insider
Europeans are pulling back from travel to the US, but rich Americans are still going the other way, Europe's biggest airlines say
Europeans may be losing interest in visiting the US, but Americans are still keen on flying transatlantic — for now. Air France-KLM, Europe's second-largest airline by revenue, said Wednesday that bookings on flights from Europe to the US in May and June are down 2.4% compared to last year. Meanwhile, those in the opposite direction have risen 2.1%. Europeans instead seem to be looking anywhere else for their summer travels. The airline group's bookings from Europe to the rest of the world are up 9.2%, compared to 7.3% the other way. "Europe is holding up against the turmoil with inbound traffic from both the United States and the rest of the world showing growth compared to last year," CEO Ben Smith said on Wednesday's earnings call. Germany's Lufthansa, Europe's biggest airline by revenue, is seeing similar trends. CEO Carsten Spohr said on a Tuesday earnings call that Americans are more willing to spend than Europeans, and the airline group is seeing stronger growth from the US than in other markets. He added: "Bookings have slightly softened in the US, destinations to and from." Tighter immigration rules in the US are one reason Europeans are looking to travel elsewhere. In an interview with Bloomberg, the CEO of hospitality firm Accor spoke of declining bookings due to a "bad buzz," with more reports of Europeans being turned away at the US border. For example, France's higher education minister told Agence France-Presse that a scientist was denied entry to the US after he was found to have sent texts criticizing Donald Trump. The president's tariff plan has also caused economic uncertainty. Travel is one of the first things to suffer in such cases because it's a non-essential thing to spend money on and is relatively easy for consumers to forego. However, people have also been more willing to pay for experiences post-pandemic, and premium cabins for leisure travel have been more resilient. This may be driven by Americans, given that they earn about 35% more than French people on average. France is also a particularly popular vacation spot for Americans, especially since the pandemic. But with the economic uncertainty set to continue and the impact of tariffs yet to be fully realized, some analysts think the worst is yet to come for airlines. "At the moment, the US carriers and Lufthansa have pointed towards resilient premium leisure demand. We continue to think this will weaken due to wealth effects," Andrew Lobbenberg, a Barclays analyst, wrote in a Tuesday note. In another note the following day, he added that Barclays analysts are "bearish" for transatlantic routes.
Yahoo
29-04-2025
- Business
- Yahoo
Lufthansa's Q1 loss deepens even as US bookings remain bright spot
Lufthansa has once again started the year in the red, despite a sharp rise in revenue. The German airline group - which besides its namesake Lufthansa includes SWISS, Austrian Airlines and Brussels Airlines - faced noticeably higher operating costs in the first quarter, not helped by the fact that the Easter holiday in April - a typically strong travel period - shifted to the second quarter this year. In the first quarter, Lufthansa's revenue grew 10% year-on-year to €8.1 billion ($9.2 billion). The group's operating loss, adjusted for special items, narrowed by 15% to €722 million. However, the passenger airline segment saw its loss widen to €934 million. Overall, the group's net loss increased by more than 20% to €885 million, largely due to reduced tax benefits. The company announced on Tuesday in Frankfurt that passenger numbers from the United States rose significantly in March compared to the previous year, even amid the market volatility triggered by President Donald Trump's sweeping tariff programme. Bookings from the US have continued to climb, providing a boost to the carrier's outlook. As a result, chief executive Carsten Spohr reaffirmed his target of increasing the group's operating profit, or adjusted EBIT, this year, aiming to "significantly" exceed the 2024 result of approximately €1.65 billion. Sign in to access your portfolio
The Sun
29-04-2025
- Business
- The Sun
Lufthansa keeps 2025 outlook, warns of trade risks
BERLIN: German airline Lufthansa yesterday confirmed its operating result forecast for 2025, offering what analysts deemed a more positive assessment than other airlines, but warned that it was monitoring the impact of trade tensions. European airlines are entering the first-quarter earnings season with increased investor anxiety over demand as global economic worries stemming from US President Donald Trump's tariff threats drag on US air travel. 'Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025,' CEO Carsten Spohr said in a statement. Earlier this month, US carrier Delta pulled its 2025 financial forecast, pointing to Trump's tariff threats as a drag on demand. Virgin Atlantic also said it had seen a slowdown in travel to Britain from the US Air France-KLM, which will report its first-quarter results today, earlier this month said that it would consider cutting economy fares in an effort to support potentially lagging transatlantic travel. The transatlantic route is key for global airlines, maintaining some of the highest revenue and demand and helping airlines like IAG-owned British Airways maintain solid results. Lufthansa said demand in the US sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the US to Europe. Still, the company said it has set up 'a task force to closely monitor current developments and, if necessary, respond quickly and flexibly to any weakening in demand, for example by adjusting capacity.' Lufthansa is counting on the lucrative route as it faces pressure to revive its core airline, bogged down by wage talks and high pay, and find new sources of revenue as it struggles to compete with Chinese carriers in Asia. 'Macroeconomic uncertainties, particularly the trade tensions between the US, the EU and other regions, are making it difficult to forecast the coming quarters accurately,' the German flag carrier said in a statement. For the first three months of 2025, Lufthansa reported an adjusted loss before interest and taxes of €722 million (RM3.6 billion), roughly in line with a company-compiled forecast. That's down 15% from a loss of €849 million for the same quarter last year. Revenues were up 10% on last year, at €8.1 billion compared to €7.3 billion. Lufthansa shares are around the same level as this time last year, with one trader saying there could be a bounce today based on what they see as 'good enough' results. – Reuters
RTÉ News
29-04-2025
- Business
- RTÉ News
Lufthansa confirms 2025 outlook, braces for possible trade fallout
German airline Lufthansa has today confirmed its operating result forecast for 2025, but warned that it was closely monitoring the possible impact of trade tensions with the US. European airlines are entering the first-quarter earnings season with increased investor anxiety over demand as global economic worries stemming from US President Donald Trump's tariff threats drag on US air travel. "Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025," CEO Carsten Spohr said in a statement. Earlier this month, US carrier Delta pulled its 2025 financial forecast, pointing to Trump's tariff threats as a drag on demand. Virgin Atlantic also said it had seen a slowdown in travel to Britain from the US. Air France-KLM, which reports first-quarter results tomorrow, earlier this month said that it would consider cutting economy fares in an effort to support potentially lagging transatlantic travel. The transatlantic route is key for global airlines, maintaining some of the highest revenue and demand and helping airlines like IAG-owned British Airways maintain solid results. Lufthansa said demand in the US sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the US to Europe. Still, the company said it has set up "a task force to closely monitor current developments and, if necessary, respond quickly and flexibly to any weakening in demand, for example by adjusting capacity." Lufthansa is counting on the lucrative route as it faces pressure to revive its core airline, bogged down by wage talks and high pay, and find new sources of revenue as it struggles to compete with Chinese carriers in Asia. "Macroeconomic uncertainties, particularly the trade tensions between the US, the EU and other regions, are making it difficult to forecast the coming quarters accurately," the German flag carrier said in a statement. For the first three months of 2025, Lufthansa reported an adjusted loss before interest and taxes (EBIT) of €722m, roughly in line with a company-compiled forecast.
Business Times
29-04-2025
- Business
- Business Times
Lufthansa confirms 2025 outlook, braces for possible trade fallout
[BERLIN] German airline Lufthansa on Tuesday (Apr 29) confirmed its operating result forecast for 2025, offering what analysts deemed a more positive assessment than other airlines, but warned that it was monitoring the impact of trade tensions. European airlines are entering the first-quarter earnings season with increased investor anxiety over demand as global economic worries stemming from US President Donald Trump's tariff threats drag on US air travel. 'Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025,' CEO Carsten Spohr said in a statement. Earlier this month, US carrier Delta pulled its 2025 financial forecast, pointing to Trump's tariff threats as a drag on demand. Virgin Atlantic also said it had seen a slowdown in travel to Britain from the US. Air France-KLM, which reports first-quarter results on Wednesday, earlier this month said that it would consider cutting economy fares in an effort to support potentially lagging transatlantic travel. The transatlantic route is key for global airlines, maintaining some of the highest revenue and demand and helping airlines like IAG-owned British Airways maintain solid results. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lufthansa said demand in the US sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the US to Europe. Still, the company said it has set up 'a task force to closely monitor current developments and, if necessary, respond quickly and flexibly to any weakening in demand, for example by adjusting capacity.' Lufthansa is counting on the lucrative route as it faces pressure to revive its core airline, bogged down by wage talks and high pay, and find new sources of revenue as it struggles to compete with Chinese carriers in Asia. 'Macroeconomic uncertainties, particularly the trade tensions between the US, the EU and other regions, are making it difficult to forecast the coming quarters accurately,' the German flag carrier said in a statement. For the first three months of 2025, Lufthansa reported an adjusted loss before interest and taxes (EBIT) of 722 million euros (S$1.07 billion), roughly in line with a company-compiled forecast. That's down 15% from a loss of 849 million euros for the same quarter last year. Revenues were up 10% on last year, at 8.1 billion euros, compared with 7.3 billion euros. Lufthansa shares are around the same level as this time last year, with one trader saying there could be a bounce today based on what they see as 'good enough' results. REUTERS
