Uncertain environment bites into Air France-KLM revenues

27th Jul 2016
Uncertain environment bites into Air France-KLM revenues

Air France-KLM has pointed to a deteriorating global situation for a fall in profits during the second quarter of 2016.

The group reported a five per cent fall in revenue to €6.22 billion for the three months to June 30th when compared with the same period last year.

Pointing to a “highly uncertain” geopolitical and economic environment, the Air France-KLM said fuel prices and the continuation of the overcapacity in the airline industry were resulting in an increasing pressure revenues.

At the same time, there were concerns about “France as a destination” following a spate of terror attacks across the country.

However, despite the difficulties, operating profit rose 138 per cent to €317 million for the period, partly due to lower fuel costs.


A strike by Air France pilots in June also reduced profit by an estimated €40 million, while a fresh week-long strike by flight crews from today is likely to see a raft of flight cancellations.

Air France said earlier it expects to operate 92 per cent of its long-haul flights, 90 per cent of its domestic and more than 80 per cent of its medium-haul flights to and from Paris-CDG.

The airline is expecting nearly 40 per cent of cabin crew to take strike action from today.

Customers who are booked on a flight between July 27th and August 2nd have been off the possibility of changing their trip whether their flight is cancelled or not.


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