Monday, April 14, 2025

Fewer and fewer people want to travel to the US – and it could get worse, experts warn

Business Insider Fewer and fewer people want to travel to the US – and it could get worse, experts warn Business Insider now • 2 minutes read Airlines are reducing the number of seats on their transatlantic flights. Fewer and fewer people want to travel to the United States. Airlines are struggling to fill their planes for transatlantic flights. Therefore, most airlines are now reducing their seat count, as "Wirtschaftswoche" reports. US airlines already reported last year that they were experiencing revenue losses. Europeans are now following suit. In March, about eleven percent fewer people traveled from Europe to the US than a year ago. According to "Wirtschaftswoche," airlines are trying to keep their details under wraps. However, the US Trade Administration (ITA) reported a decline in air travelers for February and March that was comparable only to the slump at the beginning of the coronavirus pandemic and after the attacks of September 11, 2001. What the declining demand means for airlines While most airlines are reducing the number of available seats on their flights to the USA, Lufthansa is offering more. A spokeswoman told "Wirtschaftswoche" that the transatlantic business still looks good. From Munich, there will be seven percent more seats than in summer 2024. But the overall trend suggests that the wind could soon change for Lufthansa as well. And then things look bleak – after all, flights to North and Latin America, including feeder flights to hubs, account for 30 to 40 percent of the German airline's business. Such a decline would also have serious consequences for the other airlines. In the airline business, operating costs would not immediately decrease even with declining passenger numbers – after all, the planes still take off. Therefore, Barclays analysts warn of "an abrupt reduction in profitability," according to "Wirtschaftswoche." Furthermore, the American tourism sector would have to make cuts. Last year, foreign tourists left $250 billion in the country – a profitable business. What is the cause of the decline? This decline is not yet a result of US President Donald Trump's tariff policy, Shakeel Adam of the consulting firm Aviado Partner told "Wirtschaftswoche." Tickets are often booked in advance – the effects of the trade war are yet to be felt. Currently, it is primarily the already difficult economic situation that is burdening people and preventing them from spending money on expensive airline tickets. Added to this are the many crises that are currently leading to an uncertain global situation. If Trump's actions provoke a recession, the consequences will be even more serious in the future. And things aren't looking good. Trump is destroying the US's reputation with searches and even arrests of international visitors, according to Sébastien Bazin, head of Europe's largest hotel group, Accor. He told Wirtschaftswoche that he already sees a decline in travel this summer: about 25 percent less than last year. The number could get even worse: Many travelers are canceling their US trips, warns travel booking site Omio. According to Wirtschaftswoche, German, French, and British travelers in particular are losing interest in traveling to the United States.