Overcapacity has been responsible after Air France-KLM released a benefit caution on July 8th.
Shares in the Franco-Dutch airline decreased over 5 % to €8.9 (£7.08) in early trading following the statement. It showed their 'abnormal' amounts since late February and provided yet another strike to the Western airline sector reduced. Air France-KLM also stated that the issue of overcapacity could lead to more job reduces.
The European airline, the second-largest airline on there are, cautioned that its 2014 earnings could be 12 % reduced than previously expected. It has experienced improved competitors from other low-cost airways providing cheap air tickets.
Air France-KLM has experienced problems in the South American countries which have avoided airways from repatriating earnings from passes sales there. Despite the organization having to modify its annually income prediction from €2.5 billion dollars to between €2.2 billion dollars and €2.3 billion dollars it is still anticipating making leap over 20 % compared to 2013.
The organization said: "While not comprising a level in industry styles, the July traffic numbers released today as well as reservations for July and August nevertheless indicate the over-capacity on certain long-haul paths, especially The United States of America and Asia, with the worker impact on results in."
Air France-KLM's statement comes after German airline Lufthansa also declared a earnings caution. It persuaded a 14 % drop in share which the organization held responsible on improved competitors on its main US and Western paths.
Lufthansa has also been hit by issues in Venezuela which had reduced its results by a further €60 thousand while its 2015 making focus on had to be reduced from €2.65 billion dollars to €2 billion dollars. A three-day lead attack in Apr cleaned another €60 thousand of its yearly benefit.
Shares in the Franco-Dutch airline decreased over 5 % to €8.9 (£7.08) in early trading following the statement. It showed their 'abnormal' amounts since late February and provided yet another strike to the Western airline sector reduced. Air France-KLM also stated that the issue of overcapacity could lead to more job reduces.
The European airline, the second-largest airline on there are, cautioned that its 2014 earnings could be 12 % reduced than previously expected. It has experienced improved competitors from other low-cost airways providing cheap air tickets.
Air France-KLM has experienced problems in the South American countries which have avoided airways from repatriating earnings from passes sales there. Despite the organization having to modify its annually income prediction from €2.5 billion dollars to between €2.2 billion dollars and €2.3 billion dollars it is still anticipating making leap over 20 % compared to 2013.
The organization said: "While not comprising a level in industry styles, the July traffic numbers released today as well as reservations for July and August nevertheless indicate the over-capacity on certain long-haul paths, especially The United States of America and Asia, with the worker impact on results in."
Air France-KLM's statement comes after German airline Lufthansa also declared a earnings caution. It persuaded a 14 % drop in share which the organization held responsible on improved competitors on its main US and Western paths.
Lufthansa has also been hit by issues in Venezuela which had reduced its results by a further €60 thousand while its 2015 making focus on had to be reduced from €2.65 billion dollars to €2 billion dollars. A three-day lead attack in Apr cleaned another €60 thousand of its yearly benefit.
