Air France-KLM Slashes Year-End Capacity on Pandemic Surge

  • Carrier blames new lockdown in France taking effect on Friday
  • Fourth-quarter earnings expected to be substantially lower

Leisure travel had picked up for Air France-KLM and its peers during the summer months when infection levels dropped. But the surge in cases since then has put the brakes on any recovery.

Photographer: Nathan Laine/Bloomberg
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Air France-KLM will slash its schedule this quarter as European governments implement tough new measures to combat a resurgence of Covid-19 infections.

The shares fell after Air France-KLM saidBloomberg Terminal Friday that its French arm will offer less than 35% of year-ago capacity and KLM about 45%. That’s well below a previous forecast of 65% for the Paris-based group.