The gross profit (EBITDA) is another 200 million lower than the company had indicated in October. Reported that the Franco-Dutch airline group Thursday.
Air France-KLM still has considerable burden of price pressure on long routes. The aftermath of the pilots strike at Air France in September cost more than anticipated. In addition, the company has a pension shortfall tricks.
The falling oil prices can not compensate for the price of jet fuel declined less sharply than that of crude oil. Air France-KLM also has a substantial portion of its fuel in advance at a fixed price purchased through forward contracts.
Originally, Air France-KLM for 2014 of a gross profit of 2.5 billion euros. Meanwhile, the forecast is between 1.5 and 1.6 billion euros. This reduction is about half the expense of the increased competition on long-haul destinations. The other half is due to the pilots strike.
” There’s a lot of pressure on revenue development. Also in the first weeks of December we do not see the improvement we had hoped, ” said CFO Pierre-François Riolacci in a statement. The offer lower oil prices but limited lighting, he added. ” For jet apply criteria other than crude oil, ” he said.
Air France-KLM also noted that it puts the investment over the next two years on the back burner. It continues to look for cost savings in connection with the September announced strategic program Perform 2020
What you should know about budget cuts at KLM
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