Air France-KLM prepares for potential travel slowdown amid global trade tensions
April 11, 2025
As trade disputes intensify and fresh tariffs threaten cross-border business, Air France-KLM says it’s ready to act if demand for international air travel begins to falter.
Ben Smith, the airline group’s Chief Executive Officer, said the company has a set of contingency plans in place should the ongoing global trade uncertainty start to weigh more heavily on passenger numbers.
Among the options under consideration are deferring aircraft deliveries to reduce capital spending, and rebalancing flight operations away from the US toward regions like Latin America.
For the moment, though, travel demand between Europe and the US has roughly held steady, although the company is looking at how it would respond to lower demand on some routes.
In an interview with Bloomberg TV, Smith noted a slight weakening in economy-class bookings on transatlantic routes and confirmed the airline will be lowering fares in those cabins. He said premium-class demand has remained relatively stable.
Shares in major European airline groups dropped earlier this week after President Donald Trump unveiled new “reciprocal” tariffs on European Union goods – including a 20% duty on Airbus aircraft – escalating concerns of a broader trade war.
