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Bloomberg
Air France-KLM Group third-quarter earnings fell on lower demand for cargo transport and a reduction in lucrative last-minute passenger bookings at the height of the summer travel season. The shares fell the most in eight months.
Operating profit dropped 16% to 900 million euros ($1 billion), the carrier said in a statement, missing an average forecast of 963 million euros compiled by Bloomberg. The carrier also blamed higher fuel costs.
The numbers illustrate the fragility of a turnaround drive led by Chief Executive Officer Ben Smith, especially as economies slows in Europe.
Air France-KLM trimmed its outlook for capacity growth at low-cost Transavia unit. “The environment isn’t as good as in 2018 or even 2017,†Chief Financial Officer Frederic Gagey told reporters, citing trade tensions weighing on the cargo business.