Air France-KLM shares tumble on growth warning

Air France-KLM’s shares have closed at their lowest level in over three years, down 12.3% at 11.87 euros, following a predicted zero growth for 2009 and 2010.  Shares dived following the release of a statement reaffirming it’s cost-saving plans and a reduction in it’s investment program:

“The Air
France-KLM group indicates that, at this stage, it has decided to limit the increase in its capacity
for Winter ‘08 and Summer ‘09 to between 1 and 2%. In subsequent years, capacity will be
adapted in accordance with prevailing market conditions.”
“Air France-KLM has already approved a new cost-saving plan as well as a reduction in its
investment program.”
“Taking into account current economic conditions, it will be very difficult for the group to achieve
its objective of operating income for this financial year of 1 billion euros. Nevertheless, the
operating result will remain comfortably in profit as long as market conditions do not deteriorate
any further.”
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