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Shares in Air France-KLM opened down more than 7 per cent on Friday after the Franco-Dutch airline group issued its third profit warning since July and announced new cost cuts.
The group trimmed its forecast for earnings before interest, tax, depreciation and amortisation (EBITDA) by €200 million ($246 million) to 1.5-1.6 billion late on Thursday, citing higher-than-expected pilot strike costs and weak long-haul revenues.
In early trading, shares in Europe’s second-largest traditional carrier were down 7.7 per cent at €7.662.
Air France-KLM said the way its fuel hedging contracts are structured were also partly to blame for the downgrade in its forecasts, which would also trigger a slowdown in deliveries of 10 Boeing 777 jets due in 2015 and 2016. ($1 = 0.8141 euros)
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