by Virgin Atlantic has warned of slowing down the demand for transatlantic journey, which led to a further decline in the share price of the competing British Airways owner IAG.
Both British long-distance airlines rely on lucrative routes between London and North America to increase their profits, and analysts have warned that economic uncertainty and growing tensions between the United States and Europe could harm their business.
Virgin Atlantic, Sir Richard Branson’s airline, said that trade was strong at the beginning of 2025, since he announced a return to the profit for the first time since the Covid Pandemy in the results of 2024.
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Shai Weiss, CEO of Virgin Atlantic, said that 2024 was “a turning point for Virgin Atlantic and the highlight of our transformation,” and added that this year new transatlantic routes to Toronto and Cancún and a new Virgin clubhouse in Los Angeles would bring.
In accompanying comments, the CFO of Virgin Atlantic, Oli Byers, said: “In the past few weeks we have found some signals that the US demand has slowed down.”
Byers stated that the slowdown met bookings in the second quarter – a peak time of travel. He added: “We believe that this is a fairly natural reaction to the general uncertainty of consumers.”
The IAG shares fell in the hours after byers commented and closed 6.6%, which made it a top -tftse case on Monday.
Last month, due to a booming transatlantic market, it reported an annual gain of 2.2 billion GBP. But after the stock market value was more than doubled in early February, it has fallen by 30%since then.
A weaker dollar threatens to restrict the growing basis of high-expenditure, book the premium seats, while analysts have warned that the break-in between Canada and the USA could be replicated throughout the Atlantic due to emerging hostility.
Economic trust in the United States could be the main factor, since US airlines will be warned of the weak domestic demand at the beginning of this month, a slowdown that could spread on international routes. The US partner of BA in his transatlantic Allianz American Airlines has dropped the share price by 40% in two months.
In a note this month provocative with the title “The Golden Goose is cooked”, Andrew Lobbenberg switched from Barclays to sell investors to advice, instead of buying IAG shares, and explained that the airline group was most exposed to the USA and was dependent on the transatlantic for its profits.
The customs markets prescribed by Donald Trump have shaken the stock markets, and Lobbenberg warned: “The weakening assets that result from the volatile financial markets can in particular burden the trust of the wealthy premium leisure time. In view of the actual importance of the premium temporary demand for the Full service.
