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Pilot strike impacts results of Air France-KLM in 2014

Xinhua, February 19, 2015 Adjust font size:

Air France-KLM suffered a decline in revenue in the full year of 2014, partially as a result of the pilot strike at Air France in September last year, the Franco-Dutch airline announced on Wednesday.

Revenue in 2014 reached 24.9 billion euros (28.387 billion U.S dollars), down by 2.4 percent from the previous year.

Compared to 2013, the EBITDA of the company (Earnings Before Interest, Taxes, Depreciation and Amortization) declined by 266 million euros (303 million U.S. dollars) to 1.589 billion euros (1.81 billion U.S. dollars). Excluding the impact of the Air France pilot strike in the second half of September last year, it went up 159 million euros (181 million U.S. dollars).

The KLM stated that activity was affected by the 14-day strike by the Air France pilots, which had an estimated negative impact of 425 million euros (484 million U.S. dollars) on the operating result.

The number of passengers grew by 0.2 percent from 77.328 million in 2013 to 77.450 million in 2014.

"The full year 2014 results speak for themselves," CEO Alexandre de Juniac said in a press release. "Despite the challenging economic and competitive context, once corrected for the impact of the Air France pilot strike, EBITDA is up by more than 50 percent in three years, and the operating cash flow has more than tripled to reach nearly 1.5 billion euros (1.7 billion U.S. dollars)."

Against the backdrop of an uncertain global context in early 2015, a significant drop in fuel prices, the continued overcapacity situation on several long-haul markets, and a negative currency impact, Air France-KLM decided to reinforce several scheduled measures.

The investment plan will be scaled back by 600 million euros (683 million U.S. dollars): 300 million euros (341.5 million U.S. dollars) in 2015 and 300 million euros (341.5 million U.S. dollars) in 2016.

Also Air France-KLM revised the unit cost reduction target, up from 1-1.5 percent per year announced in September 2014 to an average of 1.5 percent per year. Endi