European travel to the U.S. appears to be stabilizing, according to a report from Kepler Cheuvreux. In 2025, inbound passenger flows from Europe experienced a sharp decline, impacting long-haul carriers. Political rhetoric and actions deterred many travelers, prompting them to choose other destinations. French and German travel experienced the steepest drops.

However, the report suggests signs of a turnaround. Data indicates a rebound in late 2025, especially in Germany. Booking data for the June-July 2026 period, coinciding with the FIFA World Cup, shows a 15% year-on-year increase in reservations. Growing interest in flights to the U.S. has also been observed in major European markets, mirroring the increase in passenger numbers.

This potential recovery is a positive sign for transatlantic travel. EU-U.S. travel is a major profit center for IAG, British Airways’ parent company. Deutsche Lufthansa, which faced considerable challenges in 2025, is also poised to benefit. The trend suggests a recovery from the depressed levels seen last year, which could provide a boost to long-haul carriers.

Looking ahead, the recovery of European travel to the U.S. will be driven by several factors, including the World Cup and the easing of political tensions. While the report acknowledges limited visibility, the early indicators suggest a positive outlook for the sector. Investors should watch for the next quarterly reports.