European Airlines Soar Amid Economic Turbulence

European airlines Lufthansa and Air France-KLM recorded higher second-quarter profits, defying economic uncertainties and U.S. tariffs affecting transatlantic travel. Despite weaker domestic U.S. travel, premium and international demand remained robust. Lufthansa's profits were buoyed by ITA Airways investments, while Air France-KLM benefited from Paris's draw and SAS integration plans.

In a defiance of economic turbulence and U.S. tariffs, European airlines Lufthansa and Air France-KLM have posted higher second-quarter profits. These robust earnings come as a boost for transatlantic travel routes, among the industry's most lucrative, even as U.S. airlines falter under fluctuating demand.

Lufthansa attributed its strong performance to resilient demand in the U.S. and strategic investments, including a profitable stake in Italy's ITA Airways. Meanwhile, Air France-KLM emphasized the potency of its premium offerings, with significant interest in flights to Paris and strategic moves in Copenhagen following its majority stake in SAS.

Contrasting with strained domestic U.S. air travel, the European market benefits from wealthier American tourists and stabilizing travel demand, though cost-conscious behavior persists. While geopolitical crises linger, leaders like Lufthansa's CEO remain optimistic, citing reduced oil prices and enhanced operational efficiency as key profit drivers.

(With inputs from agencies.)