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Lufthansa confirms 2025 outlook, braces for possible trade fallout
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Lufthansa confirms 2025 outlook, braces for possible trade fallout
May 25, 2025 8:31 PM

BERLIN, April 29 (Reuters) - German airline Lufthansa

on Tuesday confirmed its operating result forecast for

2025, but warned that it was closely monitoring the possible

impact of trade tensions with the United States.

European airlines are entering the first-quarter earnings

season with increased investor anxiety over demand as global

economic worries stemming from U.S. President Donald Trump's

tariff threats drag on U.S. 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, U.S. 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 U.S.

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.

Lufthansa said 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.

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 U.S., 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 ($822.14 million), roughly in line with a company-compiled

forecast.

($1 = 0.8782 euros)

(Reporting by Joanna Plucinska and Rachel More, Editing by

Friederike Heine and Varun H K)

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