Lufthansa confirms 2025 outlook, braces for possible trade fallout

German airline Lufthansa on Tuesday (Apr 29) confirmed its operating result forecast for 2025, offering what analysts deemed a more positive assessment than other airlines, but warned that it was monitoring the impact of trade tensions.

European airlines are entering the first-quarter earnings season with increased investor anxiety over demand as global economic worries stemming from US President Donald Trump’s tariff threats drag on US 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, US 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 US.

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.

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Lufthansa said demand in the US sales region was continuing to rise. In March, the airlines group carried around 25% more passengers from the US 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 US, 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 (S$1.07 billion), 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 with 7.3 billion euros.

Lufthansa shares are around the same level as this time last year, with one trader saying there could be a bounce today based on what they see as “good enough” results. REUTERS