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| Air France warns of 'special concern about France as a destination' | |
| (about 1 hour later) | |
| Air France-KLM has warned about "France as a destination" as recent terror attacks weighed on its sales in the second quarter of the year. | |
| The airline group reported a 5% fall in revenue to €6.22bn (£5.2bn) compared with the same period last year. | The airline group reported a 5% fall in revenue to €6.22bn (£5.2bn) compared with the same period last year. |
| Air France also joined other European airlines in warning of the impact from the "high level" of geopolitical and economic uncertainties. | Air France also joined other European airlines in warning of the impact from the "high level" of geopolitical and economic uncertainties. |
| However, operating profit rose 138% to €317m, partly due to lower fuel costs. | However, operating profit rose 138% to €317m, partly due to lower fuel costs. |
| "The global context in 2016 remains highly uncertain... resulting in an increasing pressure on unit revenues and a special concern about France as a destination," the airline said. | "The global context in 2016 remains highly uncertain... resulting in an increasing pressure on unit revenues and a special concern about France as a destination," the airline said. |
| Air France-KLM's results were issued hours after a priest was killed by two armed men in France, adding to a spate of attacks in Europe that has affected demand for travel and coming on top of the aftermath of the Brexit vote. | Air France-KLM's results were issued hours after a priest was killed by two armed men in France, adding to a spate of attacks in Europe that has affected demand for travel and coming on top of the aftermath of the Brexit vote. |
| Gerald Khoo, an analyst at Liberum, said the results were "not as bad as feared" as fuel savings had offset the decline in sales. | Gerald Khoo, an analyst at Liberum, said the results were "not as bad as feared" as fuel savings had offset the decline in sales. |
| Strikes | |
| The strike by Air France pilots in June also reduced profit by an estimated €40m. | |
| A fresh week-long strike by flight crews from 27 July will see the airline cancel some of its domestic and medium-haul flights. | |
| UK airline Flybe said repeated industrial unrest in France had weighed on its second-quarter results. | |
| Flybe said passenger revenue increased 5% to £155.8m, despite a slowdown in airline growth and the problems in France, a market which accounts for 12% of its sales. | |
| "The current outlook is very uncertain and we have limited forward visibility due to our late booking profile," Flybe said. |