Air France-KLM Sees $632 Million Earnings Hit From Strike
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Air France-KLM Group said profit in 2014 may be 500 million euros ($632 million) lower than earlier forecast amid lost revenues from the worst strike in its history, which crippled flights for two full weeks last month.
The fallout from the actual strike stands at 320 million euros to 350 million euros. That figure represents lost revenue and additional costs minus expenses avoided such as a fuel, it said. The total shortfall is higher because the strike has led some passengers to delay bookings, though the airline, Europe’s largest, said it was difficult to know to what extent poorer-than-expected bookings are related to the strike, and to what extent, a general weakness in demand.