Decline in European Travelers Booking Flights to the U.S.; Multiple Airlines Report the Trend
Revamped Dispatch:
Traveling to Europe remains alluring for Americans, according to Air France-KLM, despite economic turbulences surrounding tariffs. Meanwhile, European bookings to the U.S. show a decline. The parent company of British Airways, IAG, acknowledges a "weakness" in flights to the U.S. European vacation interests seem to be shifting, but Americans continue to embark on transatlantic journeys, at least for now.
Air France-KLM reported on Wednesday that bookings for flights from Europe to the U.S. in May and June were down by 2.4% compared to the previous year, while bookings in the reverse direction increased by 2.1%. European travelers appear to be veering towards exotic destinations this summer. The airline group's bookings for travel from Europe to the rest of the world rose by 9.2%, surpassing the 7.3% increase in the opposite direction.
"Europe is sailing through the turbulence, with incoming traffic from both the United States and the rest of the world up compared to last year," CEO Ben Smith said during the earnings conference.
Similar trends have been observed by Lufthansa, Europe's largest airline by revenue. CEO Carsten Spohr stated in a conference call that Americans are spending more and that the airline is witnessing stronger growth in the U.S. than in other markets. He further noted that American bookings have experienced a slight softening, both inbound and outbound, due in part to stricter U.S. immigration policies.
IAG, the parent company of British Airways, published itsfirst-quarter 2025 results, reporting a 9.6% revenue increase compared to the same period last year. Although demand for travel to Latin America and Europe remains strong, IAG was able to offset the recent weakness in Economy in the U.S. with strong premium cabin sales, according to CEO Luis Gallego.
French travel and hospitality company Accor voiced concerns over declining bookings due to negative sentiment and increasing reports of Europeans being denied entry at the U.S. border. The denial of entry to a scientist critical of Donald Trump further added to the concerns.
Economic uncertainty and Trump's trade plan have led to a dampened outlook for European travel to the U.S. However, Americans, on average earning 35% more than the French, are willing to splurge on premium travel experiences after the pandemic. France, a popular vacation destination for Americans, might benefit from this trend.
While analysts suspect that the worst is yet to come for airlines, they also recognize the resilience of premium travel demand. Some, such as Andrew Lobbenberg of Barclays, expect this demand to weaken due to wealth effects. Nevertheless, European destinations continue to hold their charm for Americans, ensuring a steady stream of transatlantic travelers for now.
- American tourists are continuing to travel to Europe, despite the economic turbulences surrounding tariffs, as reported by Air France-KLM, demonstrating a general-news trend of resilience.
- European travelers are showing a preference for exotic destinations over the U.S. this summer, according to Air France-KLM's booking data, integrating French travel preferences into the macroeconomic picture.
- Lufthansa, Europe's largest airline by revenue, has observed stronger growth in the U.S., suggesting a significant impact of American finance on the travel industry, particularly in the premium sector.
- IAG, the parent company of British Airways, has noted a slight softening in American bookings due to stricter U.S. immigration policies, raising concerns about the political implications for travel from the U.S. to Europe.
- French travel and hospitality company Accor has expressed concerns over declining bookings due to negative sentiment and increasing reports of Europeans being denied entry at the U.S. border, highlighting the interplay between lifestyle, politics, and finance in the travel sector.
