General Industry

Air France-KLM Traffic Falls

By Publications Checkout
Air France-KLM Traffic Falls

Air France-KLM Group said passenger traffic and average fares both fell in January amid softer demand on routes to emerging markets.

Group-wide traffic - passengers times the distance flown - fell 0.1 per cent, paced by a 5.4 per cent drop on flights to Africa and the Middle East. Unit revenue, which reflects fares, was also down, Air France-KLM said without giving figures.

Management will meet with labour leaders from the main Air France unit on 13 February to discuss cost-reduction measures as the company struggles to bring expenses into line with peers. First-quarter earnings figures are due to be reported 19 February.

January traffic also fell 1.7 per cent on flights to Asia, with the group-wide number buoyed by the low-cost Transavia unit in Europe, which reaped an 8.1 per cent increase.

Performance in North America was “resilient” with a 1.8 per cent traffic gain, the company said, though that fell short of a 2.5 per cent rise in capacity so that occupancy levels fell.

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During the same month, British Airways owner International Consolidated Airlines Group SA boosted traffic 5.5 per cent.

Bloomberg News, edited by Hospitality Ireland