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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 (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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