Latest news with #intra-European
Business Insider
3 days ago
- Business
- Business Insider
European travel to the US slowed down this year — but travel companies say a summer rebound is already underway
Despite political tensions and growing anti-American sentiment, US travel is holding steady among European tourists — especially when prices drop. From January to April, several major travel platforms observed a slowdown in European bookings to the US. Thomas Cook reported a dip that exceeded typical seasonal fluctuations. "We did observe a softening in bookings to the US between January and April this year — a dip that goes beyond the usual seasonal adjustments," Nicholas Smith, holidays digital director at Thomas Cook and eSky Group, told Business Insider. However, by May, things began to shift. Smith said aggressive pricing strategies, including hotel rate cuts of around 25% and deposits of just over $1, triggered an uptick in bookings. "This has, in turn, helped stimulate demand, particularly among UK travelers adept at spotting good deals," he said. "We expect this rebound to continue into the summer months." Other travel firms echoed that optimism. TravelPerk, which serves business and corporate travelers, said bookings to the US from Europe rose 1% year over year in April, while US to Europe bookings climbed by 14%. Cancellation rates remained stable at 7 to 9%. Etraveli Group, which analyzed bookings through April, found that while demand for flights from the EU to the US declined by 7%, overall trip orders to the US from Europe jumped 19.5% year over year. However, bookings to other intercontinental destinations grew even faster, up 24.3% overall, 29% for Africa, and 25% for Asia. Shorter intra-European trips surged by 29%. Tariff backlash These shifts are unfolding against a politically charged backdrop. President Donald Trump's escalating trade war, with tariffs on EU imports swinging from 20% to 10% and now potentially rising to 50%, has triggered grassroots consumer backlash across Europe. Apps like Brandsnap in the Netherlands and Detrumpify in France are helping Europeans identify US brands to avoid in supermarkets and online. In Denmark, major retailer Salling Group labelled European-made products with black star labels, while Norway's largest oil bunkering operation company, Haltbakk Bunkers, made headlines for briefly refusing to refuel US Navy ships. Meanwhile, high-profile American brands like Tesla and Coca-Cola are already seeing a fallout. Tesla's sales in Europe dropped by 46% between January and April, according to data from the European Automobile Manufacturers Association, and McDonald's reported a global sales dip linked to "anti-American sentiment," especially in Northern Europe. This behavior may reflect more than a passing political reaction. In its March Consumer Expectations survey, the European Central Bank found that 44% of about 19,000 respondents preferred to switch away from US brands, regardless of tariff levels. The bank warned that this suggested a "possible long-term structural shift in consumer preferences away from US products and brands." It may not be a long-term shift French hotel giant Accor added to the concerns last month. CEO Sébastien Bazin told Bloomberg that summer bookings to the US from Europe were down 25%. Yet, travel industry analysts cautioned against assuming this signals a long-term shift. "While there is evidence of a temporary slowdown at this stage, the combination of price adjustments and strong interest in iconic US destinations suggests the market is poised to recover momentum," said Smith of Thomas Cook. Hosuk Lee-Makiyama, director of the European Centre for International Political Economy, told BI that politics isn't the only factor deterring travelers. "Some of it is a genuine disinclination against spending your holidays in the US," he said, "but much of it is the fear of harassment at the border."
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Business Standard
6 days ago
- Business
- Business Standard
Asia leads air cargo recovery with 10% growth as global demand soars
Air cargo is flying high again, with Asia leading the charge. According to data from the International Air Transport Association (IATA), global air freight demand surged 5.8 per cent year-on-year in April 2025, with Asia-Pacific carriers delivering a standout performance at 10 per cent growth. The rise was driven by seasonal shipping of fashion and consumer goods — some of it front-loaded ahead of US tariff changes — and a 21.2 per cent drop in jet fuel prices over the past year. Asia-Pacific leads recovery Asia-Pacific carriers posted a 10 per cent year-on-year increase in demand, with capacity up 9.4 per cent. This reflects strong intra-regional trade and continued resilience on Europe-Asia routes, which grew 11.3 per cent in April — marking 26 consecutive months of expansion. India's exporters could benefit from this momentum. In April, India's Flash Purchasing Managers' Index (PMI) climbed to 60.0, up from 59.5 in March, the strongest pace of growth in eight months. The uptick was driven by strong international demand for services and manufactured goods, with new export orders growing at their fastest pace since September 2014. Regional trends in air cargo Latin American airlines saw the highest growth at 10.1 per cent, while North American carriers posted a 4.2 per cent increase. European carriers recorded a more modest 2.9 per cent rise, while West Asian airlines saw the slowest growth at 2.3 per cent. 'Air cargo demand grew strongly in April, building on March's solid performance,' said Willie Walsh, IATA's Director General. 'While the outlook is encouraging, global trade stresses and shifting policies, especially in the US, will require airlines to stay flexible in the coming months.' Mixed trends in trade lanes IATA noted that all international trade routes except for West Asia-Europe, Africa-Asia, and intra-European routes recorded growth. Europe-Asia routes saw an 11.3 per cent surge, continuing the 26-month growth streak. In contrast, Africa-Asia traffic fell by 7.9 per cent, and intra-European cargo declined by 8.8 per cent. Industry outlook: Cautious optimism Air cargo capacity rose 6.3 per cent from last year, while freight rates showed signs of improvement. Jet fuel prices have declined for three straight months, with a 4.1 per cent drop in April alone. The global manufacturing PMI ticked up to 50.5, signalling modest expansion, though the new export orders index slipped to 47.2, below the threshold for growth.
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
IATA: Global air cargo demand up by 5.8% y-o-y in April
KUALA LUMPUR — The International Air Transport Association (IATA) has reported a year-on-year (y-o-y) increase in global air cargo demand for April 2025. Total demand, measured in cargo tonne-kilometres (CTK), rose by 5.8 per cent in volume, building on March's solid performance, IATA said in a statement today. International operations saw an even stronger increase of 6.5 per cent, while in terms of capacity, measured in available cargo tonne-kilometres (ACTK), ticked up by 6.3 per cent globally and 6.9 per cent for international routes. In April 2024, the total demand for international operations was 6.5 per cent higher. In terms of capacity, measured in ACTK, increased by 6.3 per cent, compared with April 2024 of 6.9 per cent for international operations. IATA director general Willie Walsh said seasonal demand for fashion and consumer goods, front-loading ahead of the United States tariff changes, and lower jet fuel prices have combined to boost air cargo. 'With available capacity at record levels and yields improving, the outlook for air cargo is encouraging. While April brought good news, stresses in world trade are no secret. 'Shifts in trade policy, particularly in the US, are already reshaping demand and export dynamics. Airlines will need to remain flexible as the situation develops over the coming months,' he said. Several economic indicators supported the uptick in air cargo performance, including the increase in global industrial production, which rose 3.2 per cent y-o-y in March. It also noted that jet fuel prices declined by 21.2 per cent from the previous year and 4.1 per cent compared with March, marking the third consecutive month of falling fuel costs. Besides, global manufacturing Purchasing Managers' Index (PMI) rose to 50.5 in April, signalling continued expansion for the fourth month in a row. 'However, there are also signs of caution. The Purchasing Managers' Index (PMI) for new export orders dropped 2.8 points to 47.2, remaining below the 50-point benchmark that indicates growth,' it said. In terms of regional performance in April, Asia-Pacific airlines saw 10.0 per cent y-o-y demand growth for air cargo, while capacity increased by 9.4 per cent y-o-y. On trade lane growth, IATA said all international routes experienced growth in April, except for Middle East-Europe, Africa-Asia, and intra-European routes. Overall, the data reflect a robust air cargo sector buoyed by economic and seasonal tailwinds, though the potential for policy-driven shifts remains a key risk in the months ahead. The IATA represents some 350 airlines comprising over 80 per cent of global air traffic. In terms of total cargo traffic measured by CTK, the Asia-Pacific region holds the largest market share at 34.2 per cent. North America follows with 25.8 per cent, while Europe accounts for 21.5 per cent of the global share. The Middle East contributes 13.6 per cent to the total cargo traffic, whereas Latin America and Africa represent smaller portions, with 2.9 per cent and 2.0 per cent, respectively. These figures highlight the dominant role of Asia-Pacific, North America, and Europe in global air cargo movement. — BERNAMA
Business Recorder
26-05-2025
- Business
- Business Recorder
Foreign investment into Europe falls to nine-year low: survey
BERLIN: Foreign direct investment into Europe fell for the second consecutive year in 2024, reaching its lowest level in the last nine years, a survey by professional services group EY found. FDI into Europe fell by 5% last year, with Germany seeing a 17% drop in projects due to ongoing economic and political instability, although it saw a 35% increase in the number of jobs. Companies surveyed cited a sluggish economy, persistently high energy prices and the geopolitical environment as the top three risks impacting their investment decisions. The number of projects announced by US investors in Europe declined by 11% compared with 2023 and by 24% compared with 2022, due to improving economic conditions in the US, which competes with Europe for investment. Meanwhile, investment trends in Europe highlight a growing shift towards intra-European capital flows. The survey showed that since 2015 the share of investments originating from within Europe has increased by 5 percentage points. 'Over 60% of our investment comes from Europe for Europe,' EY EMEIA Area Managing Partner Julie Teigland told Reuters, noting that US FDI represents only 18%. 'Europe's got to get its skates on and do its homework,' Teigland said. 'That means less focus on regulation, more focus on increasing competitiveness.' US tariffs make an immediate rebound of FDI into Europe unlikely. Some 37% of investors surveyed in early 2025 have postponed, cancelled or scaled back their European investment plans. Nevertheless, 61% of executives surveyed believe that Europe's attractiveness will improve over the next three years. Although this figure represents a decline of 14 percentage points compared with last year's survey, it remains high and is in line with levels seen in 2021 and 2022, prior to Russia's invasion of Ukraine. 'If Europeans know that they invest in Europe and it's going to produce good returns, this should be seen as an opportunity,' Teigland said. Spain, now the fourth-largest country for FDI in Europe, posted a 15% increase in 2024 compared with 2023, and together with Italy shows the growing competitiveness of Southern Europe. In the EY survey, France topped the foreign investment list even though its tally of investment projects fell by 14% and job creation dropped by 27% compared with 2023 due to a protracted period of political uncertainty. Britain, in second position, saw a 13% decline in FDI projects in 2024, impacted by low productivity and some of the highest energy prices in Europe.
Fashion United
21-05-2025
- Business
- Fashion United
European Commission proposes regulatory relief for mid-sized businesses
Medium-sized companies are to be exempted from several EU requirements, according to a proposal by the European Commission. Among other things, this concerns exemptions under the General Data Protection Regulation and simplified regulations, which are intended to make stock exchange listings easier and less expensive, as the authority announced. It expects that companies will save 400 million euros in administrative costs per year through the simplifications. According to the Commission, companies with more than 250 employees are considered large companies under the current regulations and must comply with significantly more rules. Now, a new category of companies is to be introduced, which will have fewer than 750 employees and will have to comply with fewer regulations. According to the Commission, this would affect almost 40,000 companies in the EU. The project also requires a majority in the European Parliament and among the EU states. Company formations should become easier In a legally non-binding strategy, the Commission also calls for tackling the ten biggest problems of the European single market from the perspective of companies. According to the information, these include complicated company formations, complex EU regulations, limited recognition of professional qualifications, different regulations for packaging and differing national regulations for services. The Commission promises, among other things, to propose a so-called 28th regulation for European company law, which is intended to make it easier to set up companies. This should make it easier to set up companies digitally and to work throughout the EU according to common rules, for example in tax, labour and insolvency law. Industry sees good approaches The German Federation of Industries (BDI) sees good approaches in the plans from Brussels. BDI president Peter Leibinger announced that, above all, small and medium-sized enterprises in intra-European trade still face too many obstacles, which have often existed for 20 years. 'If these hurdles were removed, German industry could almost double its exports within Europe, according to estimates,' said Leibinger. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
