FRANKFURT, Germany, April 29, 2025 (BSS/AFP) - German airline giant Lufthansa said on Tuesday its losses unexpectedly worsened at the start of the year and warned that trade tensions with the United States had heightened uncertainty.

In the first three months of 2025, Lufthansa, one of Europe's leading aviation groups, reported a net loss of 885 million euros ($1.0 billion).

While the start of the year is typically a slow period for airlines, the figure was still worse than a 734-million-euro loss in the same period last year, when the company was affected by a wave of strikes.

It was also worse than analyst forecasts.

The group -- whose airlines include Lufthansa, Eurowings, Austrian, Swiss and Brussels Airlines -- blamed factors such as rising costs at airports.

And while demand for air travel to North America remained strong in the first quarter, the group warned that US President Donald Trump's tariff blitz was clouding the outlook.

"Macroeconomic uncertainties, particularly the trade tensions between the US, the EU and other regions, are making it difficult to forecast" what will happen later in the year, it warned.

The group said it had set up a task force to monitor current developments and respond if demand weakens.

"We are in a period of high volatility," chief financial officer Till Streichert said.

"We are keeping an eye on market risks. We are well prepared to respond should these materialise."

Despite the uncertainty, Lufthansa stuck to its outlook for the year, saying it expected strong business in the summer and predicted operating profits would increase to around 1.6 billion euros.

After a strong post-pandemic rebound, Lufthansa saw its earnings hit hard in 2024 due to a wave of walkouts, rising costs and delayed aircraft deliveries.

It has launched a turnaround programme at its flagship carrier, which has faced particular problems.