Oct. 8, 2014, 3:32 AM
- Following a two-week strike at its French arm last month, Air France-KLM (OTCQX:AFLYY) has issued a profit warning saying the strike cost the airline as much as €500M ($632M).
- Air France-KLM now expects EBITDA to come in between €1.7B-€1.8B this year vs. an earlier target of between €2.2B-€2.3B.
- The profit warning is the second issued in 2014. In July, the airline announced that it would miss an earlier EBITDA target of €2.5B.
Jul. 8, 2014, 5:03 AM
- 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.
AFLYY vs. ETF Alternatives
Air France-KLM is a France-based holding company, which holds Air France and KLM. Through its subsidiaries, Co. is primarily engaged in providing scheduled and charter domestic and international air transportation for passengers and cargo. Co.'s three core businesses are: passenger transport,... More
Other News & PR