Richard Branson slams US tariffs for harming businesses

Virgin Atlantic Airways founder Richard Branson slammed US President Donald Trump’s tariffs as “erratic and unpredictable” actions that have knocked previously buoyant businesses into unknown territory.

“If we take Virgin, our cruise ships were booming, our airline was booming, our health clubs were full,” he said, referring to his Virgin Group holding company.

“They’re still OK but you sort of feel if he continues, he’s in such danger of doing so much damage in this world.”

Americans 'incredibly sad'

Many Americans he knows are “incredibly sad” because of Trump’s recent choices in economic policies, Branson said.

The president doesn’t carry the opinions of the vast majority of Americans, the billionaire added.

Branson was speaking to reporters at Virgin Atlantic’s unveiling of its Riyadh route from its base at London Heathrow. The UK long-haul specialist warned last month that demand from the US to the UK has weakened in the spring travel season.

Virgin Atlantic will benefit from the strong pound, weak dollar and lower fuel prices this summer, Branson said.

About 60% of the airline’s capacity is in the US and much of its portfolio centers around American destinations.

The transatlantic corridor is one of the most lucrative routes in the world, with airlines offering a range of luxurious cabins and low-cost seating to cater to all passengers.

Softening demand for travel

With concerns mounting around Trump’s tariffs and immigration policies, airlines are noticing signs of softening demand in transatlantic cabins.

It’s hard to predict what the third and fourth quarters will look like, Virgin Atlantic Chief Executive Officer Shai Weiss said during the interview. While customers are delaying decisions about flying, the airline isn’t making any changes to its schedule or network amid the softer demand, he said.

“What we’ve got to do is just be patient and let the world play its game,” he said. “And we’ll adjust accordingly.”

The airline plans daily flights to Saudi Arabia’s capital city with an Airbus A330 jet. Virgin also announced it will start daily flights to South Korea, a route it expects will be used mainly by business travelers.