Total passenger traffic fell 15.9% in September
Air France-KLM now estimates the total cost of last month’s two-week pilot strike at €500 million – likely to slash its estimated full-year core profit by more than a fifth.
Even before the strike, Air France had revised down its 2014 earnings target from €2.5 billion (EBITDA) to between €2.2 billion and €2.3 billion. It had made the revision due to overcapacity on long-haul and poor cargo demand. Now the strike – the airline’s longest since 1998 – adds to these problems.
Total passenger traffic fell 15.9% in September from the same month a year before. Bookings for the Q4 are 1%-2% down. The €500 million consists of a direct impact of between €320 million to €350 million, and the rest due to the delay in bookings.
“The group estimates that part of this delay could be progressively reduced over the coming weeks,” Air France-KLM said in a statement, adding it was hard to “quantify this adjustment exactly given the exceptional nature of the event.”
[photo courtesy Air France]