Air France-KLM issues third profit warning this year

KLM flightDutch-French airline KLM-Air France issued a third profit warning on Thursday, saying it expects pre-tax and interest earnings to be €200m lower than stated at its previous revision in October.

KLM said at the beginning of this year it expected its ebitda earnings to be €2.5bn, but reduced this to €2.2-€2.3bn in July and again by €500m in October, because of the impact of the pilots strike.

The new downward revision is due to continuing losses on long-haul flights and the continuing impact of the pilots strike. In addition, the airline cannot fully benefit from falling oil prices because of long-term fuel contracts, KLM said.

According to Bloomberg, KLM will also push back planned plane deliveries in an effort to contain costs.

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