Shares in Air France-KLM opened down more than 7% this morning after the Franco-Dutch airline group issued its third profit warning since July and announced new cost cuts.
The group, Europe's second-largest traditional carrier, trimmed its forecast for earnings before interest, tax, depreciation and amortisation (EBITDA) by €200m to €1.5-1.6 billion.
It cited higher than expected pilot strike costs and weak long-haul revenues.
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 next year and in 2016.
