Air France KLM reduces outlook blaming long-haul overcapacity

Air France KLM saw a passenger boost
Air France KLM saw a passenger boost

Booking trends for Air France KLM have shown an overcapacity on some long-haul routes, prompting the carrier to reduce its outlook for the year.

The airline group said results published this week did not ‘represent a turning point in market trends’ but showed over-capacity on some routes particularly those to North America and Asia.

This, along with weak cargo demand and on-going issues with flights to Venezuela, has caused the group to revise its EBITDA target down from EUR2.5 billion to between EUR2.2-2.3bn. This will still represent a 20+% boost compared to 2013.

The airline group recorded a 3.9% boost in passengers during June to 7.2 million, in a month when its short and medium-haul routes were impacted by strikes. This pushed up load factors although its revenue per available seat kilometre remained stable.

The group has said it still remains on track to reduce its debts to EUR4.5bn in 2015.

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