Lufthansa confirmed its operating result forecast for 2025. Analysts deemed this assessment more positive than other airlines. However, Lufthansa warned that it was monitoring the impact of trade tensions.
European airlines are entering the first-quarter earnings season. Increased investor anxiety over demand exists due to global economic worries stemming from U.S. President Donald Trump’s tariff threats, which drag on U.S. air travel.
CEO Carsten Spohr said in a statement, “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.”
Earlier this month, U.S. carrier Delta pulled its 2025 financial forecast. They pointed to Trump’s tariff threats as a drag on demand. Virgin Atlantic also reported a slowdown in travel to Britain from the U.S.
Air France-KLM reports first-quarter results on Wednesday. Earlier this month, they said that they would consider cutting economy fares in an effort to support potentially lagging transatlantic travel.
The transatlantic route is key for global airlines. It maintains some of the highest revenue and demand and helps airlines like IAG-owned British Airways maintain solid results.
Lufthansa stated demand in the U.S. sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the U.S. to Europe.
The company 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. It faces pressure to revive its core airline, bogged down by wage talks and high pay. Also, Lufthansa needs to find new sources of revenue as it struggles to compete with Chinese carriers in Asia.
The German flag carrier said in a statement, “Macroeconomic uncertainties, particularly the trade tensions between the U.S., the EU and other regions, are making it difficult to forecast the coming quarters accurately.”
For the first three months of 2025, Lufthansa reported an adjusted loss before interest and taxes (EBIT) of 722 million euros ($822.14 million). This result was 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 to 7.3 billion euros.
Lufthansa shares are around the same level as this time last year. One trader said there could be a bounce today based on what they see as “good enough” results.
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