European travellers to the US fall sharply in March amid ongoing tensions
Kenneth Fox
The number of European travellers visiting the US has fallen sharply as political and economic tension and fears of a hostile border under President Donald Trump threaten the world’s most lucrative air routes.
According to the Financial Times, visitors from Western Europe who stayed at least one night in the US fell by 17 per cent in March from a year ago, according to the International Trade Administration.
Travel from some countries — including Ireland, Norway and Germany — fell by more than 20 per cent, an FT analysis of ITA data showed.
The trend poses a threat to the US tourism industry, which accounts for 2.5 per cent of the country’s GDP. Some airlines and hotel groups have warned of waning demand for transatlantic travel and a “bad buzz” about visiting the US.
The total number of overseas visitors travelling to the US dropped by 12 per cent year-on-year in March, the steepest decline since March 2021 when the travel sector was reeling from pandemic restrictions, according to the ITA data.
“In just two months [Trump] has destroyed the reputation of the US, shown one way by diminished travel from the EU to the US,” said Paul English, co-founder of travel website Kayak. “This is not only one more terrible blow to the US economy, it also represents reputation damage that could take generations to repair.”
Meanwhile, Air France is slashing prices to maintain full economy cabins on its transatlantic flights as the airline faces weakening demand for international travel, the European carrier's top boss told Bloomberg News.
The company is noticing a "slight softness" in economy-class fares, while its premium cabins enjoy "relative stability," the airline's chief executive, Ben Smith, told Bloomberg TV.
He added that the French airline has not yet altered its flight capacity in response to these trends, though an economic downturn could pose fresh challenges.
Smith said travel is one of the first industries to get hit during economic downturns. "This is uncharted territory for us."
Air France confirmed that Smith had made the comments.
Shares of European airline groups have plunged after U.S President Donald Trump revealed on April 2nd his "reciprocal" tariff plan that included an imposition of 20 per cent tariffs on European Union products such as Airbus.
The EU is set to launch its first counter-measures against Trump's tariffs next week.
Additional reporting Reuters
