Euro decline boosts US travel demand; impacts on airlines vary

Traveling to Europe is now significantly cheaper for Americans than it was before the pandemic or even a decade ago. This shift has led to an increase in demand on European routes operated by US legacy carriers such as Delta Air Lines and United Airlines. Delta has projected record-breaking financial results for 2025, attributing success partly to strong performance in the transatlantic market.

Conversely, travel to the United States has become less appealing for Europeans due to higher relative costs. While European legacy carriers like Air France may face challenges, alliances and joint ventures help mitigate potential negative impacts through revenue-sharing arrangements.

However, airlines that primarily serve European travelers and are not part of major alliances might suffer more significantly from these currency shifts. Carriers like French Bee and Condor could see their market shares decrease unless they adapt their business models to attract more US-based passengers.

Condor has already canceled several high-profile US routes scheduled for summer 2025 as a response to these changing dynamics. As currency fluctuations continue to shape travel markets, airlines must adjust strategies accordingly.