Continued strong competition and increased fear of terrorism put yields under pressure, says the airline group Wednesday.
Air France-KLM saw its sales by more than 5 percent calving to 6.22 billion euros. The pressure on ticket prices still increasing, while also met adverse currency effects. However remained below the line a profit of 41 million euros after a loss of 79 million euros a year earlier.
The operating profit increased from 179 million to 317 million. The company was helped by a fuel bill that went out nearly a third lower. But not including fuel, flight costs appear to have dropped by 1.5 percent. For the whole of 2016, Air France-KLM still aims for a decrease of 1 percent.
Uncertainty
In addition, the outlook for the remainder of the year are very insecure. Include the British brexit referendum and the recent series of attacks in Europe provide a lot of uncertainty. The increased threat of terrorism is particularly France as a destination out of favor, especially among Asian travelers.
KLM has the results so far managed to improve this year stronger than Air France. ” But we’re not there yet, ” said CEO Pieter Elbers. ” We must continue down this route by increasing productivity and reducing costs which KLM to further invest and grow. ”
The possibilities to thank grow this year according to Elbers the cost-saving collective agreements that last year are made. In order to further increase the supply necessary additional measures, he stressed.
Strikes
KLM succeeded so far failed to convince all unions thereof. FNV is still straight and announced Wednesday action by ground staff. And Air France will face from Wednesday with a strike by cabin crew. Earlier pilots put the work down.
Besides the cost will Air France-KLM also reduce the debt significantly further this year.
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