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