Decrease in European Travelers to the US Amidst Consumer Doubts

Major international airlines operating in mainland Europe have reported a decline in travelers heading to the United States, attributing this trend to uncertainty surrounding the early months of Donald Trump’s second term as President.

Lufthansa, the German airline, along with Air France-KLM, has noted that stricter border control measures are contributing to reduced demand for transatlantic flights in recent weeks.

Ben Smith, CEO of Air France-KLM, commented that travelers are seeking “a bit more clarity” before making decisions about trips to the United States.

Carsten Spohr, CEO of Lufthansa, remarked that families seem uncertain about booking holiday trips to the US, stating, “We don’t know yet if we really want to go.”

Earlier reports indicated that Virgin Atlantic, operating from London Heathrow and reliant on transatlantic flights, had also observed a drop in demand, which was interpreted as a clear indicator of consumer uncertainty affecting international travel.

IAG, the parent company of British Airways—significant for its operations between London and New York—is expected to provide updates regarding their situation next week.

Market analysts appear to be reacting already; since the onset of stringent US protectionist policies, IAG shares have experienced a decline of over 25 percent from their five-year peak in February.

Meanwhile, Air France-KLM shares have plunged nearly 40 percent since February, and Lufthansa’s shares have decreased by more than 20 percent.

In March, the British government revised its travel advice for the US, warning that, “The authorities in the US set and enforce entry rules strictly. You may face arrest or detention if you violate these rules.”

Investors are optimistic that easyJet, a European short-haul airline, may benefit from travelers shifting their plans and opting for destinations within Europe. Following a slump to eight-month lows in early April, easyJet shares have rebounded, increasing 15 percent over the past month. On Wednesday, the shares fell slightly by 1p, or 0.2 percent, closing at 494.5p.

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