Friday, December 19, 2014

The bad news is piling up for Air France-KLM – Challenges.fr

The bad news is piling up for Air France-KLM – Challenges.fr

The bad news follow for Air France-KLM. The stock market watchdog has requested a penalty of 1.5 million euros against the air group in a folder on financial communication of the group during its 2010-2011 fiscal year.

A fine of 50,000 euros the same facts was also required against Pierre-Henri Gourgeon, head of the group at this time, during a meeting of the disciplinary committee of the Financial Markets Authority (AMF), Friday, December 19.

Furthermore, the action of the air group lost more than 7% Friday morning at the Paris Stock Exchange, with the announcement of a new warning result, the third the year.

At 9:22, the title lost 7.62% to 7.67 euros in a market up 0.88%.

“The company lowered again its target of 2014 EBITDA (EBITDA) expected € 200 million lower than the previous forecast. A revision is explained by the weakness of the recipe unit several long-haul lines since the summer, the strike of the impact of update, with new tax rules and a price effect of the limited fuel, “noted analysts at Aurel BGC.

“To compensate, AF-KLM is working on new actions reductions in costs and investments (aircraft deliveries will likely be shifted),” they added.

Between 1.5 and 1.6 billion euro surplus

Air France -KLM ended the year on a pessimistic note after announcing Thursday that it now included a gross operating profit (EBITDA) in 2014 of between 1.5 and 1.6 billion euros against a range between 1.5 and 1.8 billion announced in October and 2.5 billion before.

His CFO Pierre-François Riolacci, explained that the continued weakness of the recipe unit on long distance flights since the summer, continued in December. “In the first days of December, revenues continue to be unfavorable developments,” he said.

The airline industry is highly competitive and is faced with overcapacity in some regions of the world : in particular, on flights to Asia and, to a lesser extent, to North America, which require companies to include the price of their tickets, which has the effect of blunting revenue (called unit ).

(With AFP)

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