Air France-KLM stock drops on profit warning

By The Associated Press | Posted - Dec. 19, 2014 at 9:50 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

PARIS (AP) — Air France-KLM shares have plunged more than 8 percent in the wake of the airline's warning that weak demand on several long-haul routes and other factors would wipe hundreds of millions off profits this year.

Shares in Europe's largest airline were down 8.2 percent at 7.63 euros in late Friday trading on the Paris stock exchange.

In a statement late Thursday, Air France-KLM said a combination of factors, including weak demand, higher costs from a crippling pilots' strike, and new tax rules would strip an additional 200 million euros ($250 million) from earnings before interest, tax, depreciation and amortization this year, well above the 500 million-euro forecast it made three months ago.

Air France-KLM said it would take additional cost-cutting measures and make "a significant scale back" in investments.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast