Air France-KLM (AFLYY) warns that its 2014 profit may now be 12% lower than previously estimated. The company is now expecting earnings of approximately €2.2B, down from €2.5B. Despite the guidance drop, Air France-KLM highlighted that this will still represent a 20% improvement from 2013 EBITDA.
The carrier has attributed the new estimate to overcapacity, which has resulted in lower prices for both its passenger and cargo markets.
Despite the reduced profit guidance, net debt is still estimated to be reduced to €4.5B in 2015.