Trade tensions between the United States and Europe may cloud the important summer airline season. So says Lufthansa, pointing to changed consumer behavior due to economic uncertainty.
Brussels Airlines, a subsidiary of the German airline group, suffered an adjusted operating loss (EBIT) of 53 million euros during the first quarter of this year. However, because the result represents a 9% improvement over the same period last year, Brussels Airlines remains optimistic about a profitable 2025.
Transatlantic flights under pressure?
Lufthansa, Europe’s largest airline group, which also includes Eurowings, Austrian Airlines, and Swiss in its portfolio, has already set up a task force to monitor demand and adjust capacity, if necessary, although global demand for air travel continues to grow.
Transatlantic flights have always been a major source of revenue for Lufthansa, and demand on that route remains robust, both from vacationers and business travelers.
However, concerns that US immigration policy could dampen that demand have increased. For example, due to consumer caution, US carriers Delta Air Lines and American Airlines have already lowered their profit expectations for this year. But Lufthansa points out that in March, it carried almost 25% more passengers between the USA and Europe than in March 2024.
For your information, Lufthansa will no longer sell products such as perfume, cigarettes, and sunglasses on board its long-haul flights. The service is no longer profitable, it says. The decision applies only to the Lufthansa brand.
Still more profit
Despite the increased uncertainty, Lufthansa otherwise expects to post significantly better results this year than last year, when results were depressed by strikes, higher costs, and delayed deliveries of new aircraft. Lower fuel prices, one of the potential positive factors of the trade war for consumers and businesses, may also serve as a buffer against any weaker ticket sales, according to Lufthansa.
In the first quarter of this year, Lufthansa’s profits rose 10% to more than 8.1 billion euros. The loss before interest and taxes was 722 million euros, compared with 849 million euros a year earlier.
Red numbers for Brussels Airlines
On the other hand, Subsidiary Brussels Airlines started the year with red numbers again. In the first three months of 2025, it experienced a 53 million euro loss in its daily operations, although that was 5 million euros less than in the same period last year.
The airline looks at some setbacks, such as social unrest, due to loss. Three national demonstrations cost it 5 million euros. In addition, there was the unfavorable political situation in Central Africa – the conflict has significant consequences for several destinations in Sub–Saharan Africa, where Brussels Airlines operates – and some long-haul aircraft had to be serviced, necessitating the hiring of other aircraft.
Increase in capacity
Brussels Airlines also struggled with slightly fewer passengers. The number dropped from 1,663 million in the first quarter of 2024 to 1,644 million this year, despite an increase in the number of flights operated, from 12,976 to 14,530. The aircraft load factor was also slightly lower: 76,3% compared to 79,9% last year.
Nevertheless, Brussels Airlines also counts on profits for the whole year. For example, capacity is being further increased in view of the summer. Air Baltic’s four Airbus 220 aircraft that have been operating flights under subcontract since March will continue to do so until the end of October. As of June 11th, its own long-haul aircraft, an Airbus 330, will also enter service.
