Air France KLM issues profit warning

admin
By admin July 8, 2014 14:31

Air France KLM issues profit warning

Air France KLM has become the latest EU airline to issue a profit warning, stating that it expects a 12% decline over previous forecasts. As with other carriers such as Lufthansa, AFI KLM also attributed the warning to overcapacity resulting in weakening prices in the passenger and cargo sectors.

AFI KLM also stressed that despite the profit warning, the airline’s results so far this year still represented a 20% improvement on 2013, with overall traffic for June up 2.9% year-on-year.

In a statement, AFI KLM said: “While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields.”

Shares in AFI KLM Group also fell 5% after the profit warning was announced.

admin
By admin July 8, 2014 14:31
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