Deals
Air France-KLM Plans Seats Splurge as Discount Rivals Circle
- Europe’s biggest carrier announces major hike in capacity
- Cost cuts to be deepened after falling short last year
This article is for subscribers only.
Air France-KLM Group said it will accelerate capacity increases despite an uncertain economic climate in order to defend its share of an air-travel market that’s becoming flooded with discount rivals.
The Paris-based carrier will boost seating by up to 4 percent this year in a bid to combat the low-cost challenge, even as fuel expenses jump by a forecast 150 million euros ($188 million), it said in a statement Friday. The stock declined as much as 7.5 percent to the lowest in eight months.