Airlines Warn of Declining US Tourism Amid Tariff Uncertainty

European airlines such as Air France-KLM and Lufthansa have reported a decline in bookings from Europe to the U.S., attributing the drop to uncertainty over American border policies, stricter entry measures, and aggressive trade tariffs. Airline executives noted that European families are hesitating to book U.S. vacations due to concerns about border clarity and stories of travelers being detained at American airports. At the same time, demand for U.S. travelers to Europe remains strong, partially offsetting the decline in inbound bookings. The economic uncertainty and trade tensions, particularly the imposition of new tariffs, have also contributed to financial headwinds for both European and U.S. airlines, forcing some to cut flight schedules and revise growth forecasts. While some airline leaders hope that a recent softening in U.S. tariff rhetoric may revive demand, the travel sector continues to face significant challenges from policy shifts and broader economic pressures. U.S. carriers are dealing with similar turbulence, citing reduced domestic demand and increased operational costs due to the changing trade environment.