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    Air France Reports Pilots Strike Cost 500 Mln Euros in Damages

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    French air carrier Air France released loss reports on Wednesday estimating 500m euros ($632m) in damage caused by the two week pilot strike in September, equivalent to 20% of the yearly profit.

    MOSCOW, October 8 (RIA Novosti) – French air carrier Air France released loss reports on Wednesday estimating 500 mln euros ($632 mln) in damage caused by the two week pilot strike in September, equivalent to 20% of the yearly profit.

    According to the Reuters report, the number of Air France-KLM passengers serviced fell by 15.9% in September due to the strike and advance ticket sales for the fourth quarter have slid 1-2%. Air France said that out of the total loss of 500 mln euros, there was 320-350 mln euros in direct damage caused by customers using other airlines during the strike period.

    After the announcement, Air France stock fell by 4.2%. Before today, Air France stock had lost 12% its value during 2014.

    “It’s hard to know exactly what portion of that is linked to the strike, and what is linked to a lower market trend”, Chief Financial Officer Pierre-Francois Riolacci said on the drop in September passenger  traffic as quoted by Bloomberg.

    Air France-KLM had decreased its 2014 target EBITDA in July from 2.5 billion euros down to 2.2-2.3 billion, due to overcapacity on routes in North America and Asia, as well as poor demand for cargo-carrying operations, Reuters said.  Last year Air France reported EBITDA of 1.86 billion euros.

    The airline is resuming talks with pilot unions today about the Air France discount airline, Transavia France, reports Bloomberg.

     

    Tags:
    strike, airline company, Air France, France
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