Air France-KLM is downbeat about profits this year.
Point of view
"There is clear pressure on France as a destination"Chief Financial Officer, Air France-KLM
It has joined other European airlines in warning of falling demand for travel amid terrorist attacks in France and elsewhere in Europe along with the uncertainty created by Britain’s vote to leave the European Union.
The Franco-Dutch group just reported a drop in sales and revenue down 5.2 percent to 6.22 billion euros between April and June.
The carrier noted there is “clear pressure on France as a destination” with travellers from China and Japan in particular staying away.
And it said the need to reduce ticket prices would more than cancel out any savings from lower fuel bills this year.
It is also dealing with more strikes by staff. Its two main cabin crew unions just started a week of walkouts which the airline said will cost it more than 40 million euros.
The industrial action came as talks on renewing a collective labour agreement broke down. New Chief Executive Jean-Marc Janaillac said he would do his utmost to restore trust between management and staff.
KLM (@AirFranceKLM) July 27, 2016
EasyJet last week said it was unable to give an earnings forecast, while Germany’s Lufthansa warned on profit. Low-cost carriers Ryanair and Wizz Air maintained their targets, but said they will shift capacity away from Britain after its vote to quit the EU.