Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Amsterdam) has issued a profit warning, lowering it profit forecast from 2.5 billion euros to around 2.25 billion. The stock tumbled over 5 percent.
The Group issued this statement in their June traffic numbers:
“While not representing a turning point in market trends, the June traffic figures published today as well as bookings for July and August nevertheless reflect the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields. This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the First Quarter.
These factors lead us to revise our EBITDA target for Full Year 2014 from around 2.5 billion euros to between 2.2 and 2.3 billion euros, a rise of over 20% compared with 2013.
Strong capital disciple will enable us to remain on track in terms of debt reduction and we confirm our objective of 4.5 billion euros in net debt in 2015.”
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