Transportation
Air France, IAG Caution on Capacity Growth as Peak Travel Looms
- Air France-KLM stock dips after group reports quarterly loss
- IAG says North American capacity may not grow as much
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Air France-KLM and IAG SA cautioned that some capacity growth may slow this year as geopolitical tensions deter the flying public and corporate travel remains below pre-pandemic levels, suggesting an uneven recovery as the European aviation industry heads into the busiest season of the year.
Shares of Air France-KLM fell as much as 9.9% in Paris, their biggest intraday drop since mid November, after the Franco-Dutch group reported earnings. IAG, the owner of British Airways and Iberia, also dipped shortly after the open, before recouping losses in mid-morning trading and gaining as much as 1.2%. Deutsche Lufthansa AG, which reports earnings next week, also declined.