Money and business

Fears on the profits of airlines amid the escalation of the trade war

European airlines are preparing to unveil their financial results for the first quarter in the coming weeks, amid a major anticipation of the summer travel season. This comes with the escalation of fears of a global economic slowdown that may negatively affect the demand for travel, according to what was reported by the network “Yahoo Finance” American.

Boeing faces challenges before announcing its financial results

In conjunction, a company is preparing “Boeing” The American to announce its financial results amid increasing challenges related to the trade war and supply chain problems, which may cast a shadow over its performance during the coming period.

European study: The generation is reduced its plans for travel this summer

A recent study issued by the European Travel Commission revealed that travel intentions decreased among Europeans, especially the Zil Z, during the summer season. These initial indicators are evidence of the possibility of slowing demand, which was witnessing a remarkable recovery after the Kofid-19 pandemic.

Read alsoThe trade war is renewed between the two largest economies in the world … What are the consequences?

The demand and the greatest risk to European airlines decreased

The analyst explained Rurrei Colinani From “RBC” in a research note that the biggest challenge that European airlines is currently facing is the low demand and unity revenues, in exchange for the positive aspect of the possibility of fuel prices.

Did the aviation sector already slow?

Despite some weak indicators, analysts believe that the signs of slowdown are still not decisive. European airlines have been able to achieve a strong return to profitability in recent years. However, global economic pressures and trade tensions have become, especially after President Trump’s recent statements about the imposition of customs duties, receiving their weight on consumer spending levels.

Read alsoBoeing and Airbus crises are reflected in the performance of flight lines around the world

Expected results for “Lufthansa” and “Air France-CLM”

The markets are awaiting the announcement of results “Lufthansa” On Tuesday, followed “Air France-KLM” On Wednesday, amid expectations that the numbers are affected as a result of the delay in the profit season due to Easter later this year.

Although no prominent negative results have not yet been recorded, airlines reports have reported that the travel plans for the generation Zi decreased by 10% during the period from April to September 2025, affected by high costs.

Low recreational travel and tourist trips stagnation

It is estimated that the total number of planned tourist trips decreased by 3% in Europe, with entertainment travel by 8% compared to the summer of 2024. In this context, the company warned “Ryan Air” The ticket prices may witness a slight growth that is not enough to make up for last year’s losses.
While it was announced “Air France-KLM” On plans to study the reduction in the prices of economic class tickets to stimulate the transatlantic travel.

Trump returns pressure to the European Aviation Sector

Since the president’s return Donald Trump To the White House in January 2025, the demand for flights to the United States declined due to the imposition of comprehensive customs duties and escalating political certainty. According to sources from the European aviation sector, many passengers are awaiting the stability of the situation before their flights.

Various reviews of analysts about the future of air travel

Despite the prevailing concerns, some analysts adhere to an optimistic view, where he stated Stephen Forllong From the company “Duffy” that European airlines still maintain the growth rates of their capacity at moderate levels, which contributes to supporting financial returns.

On the other hand, he sees Dodley Chanley From “Godbodi” that investors are more concerned about the impact of low ticket prices in North America, and the possibility of this impact to move to European markets.

Watching the announcement of the results of “Boeing” amid manufacturing crises and the supply chain

The markets are waiting for the announcement of the results of the company “Boeing” Amid expectations to achieve a limited improvement despite the continued supply chain crises and trade war.
It is expected that the CEO will review Kelly Ortberg Board production of a plane 737 MaxThe best -selling model for the company.

As part of its efforts to restructure, Boeing announced the sale of its air navigation unit “Jebetn” To a company “Toma Bravo” For $ 10.55 billion in cash, reflecting its focus on strengthening its main activities in the fields of commercial and defensive aircraft.

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