A week-long strike by cabin crew at Air France could cost more than E40m, the CFO of the carrier's parent group said Wednesday. Two of the airline's cabin crew unions called the strike, which started Wednesday after talks on renewing a collective labour agreement broke down. Air France-KLM earlier Wednesday said a strike by pilots in June had cost it around E40m and CFO Pierre-Francois Riolacci said the cabin crew strike could cost more than that, or "several dozens of million euros". Air France has said it will cancel around 13% of the flights planned for Wednesday as a result of the strike. For Thursday, the airline will cancel around 30% of short and medium-haul flights from Paris Charles de Gaulle, while keeping around 90% of long-haul flights running. Around 80% of domestic flights will operate, it said. <br/>
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Air France-KLM SA said Wednesday the geopolitical and economic uncertainties that are depressing ticket prices would more than wipe out this year’s savings from lower fuel costs. Air France-KLM said sales in Q2 declined to E6.2b (US$6.8b). The carrier still managed to swing to a net profit for the April through June period. An almost 30% decline in fuel costs in the period helped deliver a E41m Q2 profit after a E79m loss a year earlier. But the airline group warned the full-year benefit from lower fuel costs to the bottom line are expected to be “more than offset in the coming quarters by downward pressure on unit revenue and negative currency impacts.” “The terrorist attacks that have happened in Europe, but especially in France, are of course hurting France as a destination,” Air France-KLM CFO Pierre-François Riolacci said. <br/>
Kenya Airlines Pilots Union (KALPA) has renewed its call for the Kenyan govt to change the management of Kenya Airways, in order to reverse the successive record loss making streak that has plagued the airline. “The historic losses are a testament to what we have been saying all along that Kenya Airways is in desperate need of new leadership and direction, KAPLA secretary general, Paul Gichinga, said. The airline reported a net loss of KES26.2b (US$258m) in the year ending March, up from a net loss of KES25.7b, a year ago. Analysts say in In the past 5 years, the stock has dropped 87%. CE, Mbuvi Ngunze, who took the helm in Dec 2014, has had a tumultuous reign but remains optimistic that the airline, which was Africa’s dominant airline just 5 years ago, will experience good fortunes in due time. <br/>
China Southern subsidiary Xiamen Airlines has ordered 6 Boeing 787-9s, in a deal worth US$1.4b at list prices. The aircraft, which are scheduled for delivery from 2016 to 2018, will be used to speed up the carrier’s international expansion pace. Xiamen Airlines flies an all-Boeing fleet of 149 aircraft, including six 787-8s, to more than 50 cities across China and over 20 international destinations in Asia, Europe and North America. In July 2015, the airline opened its first intercontinental route from Xiamen to Amsterdam. This was followed by Fuzhou-Sydney and Xiamen-Sydney routes in Dec 2015; Xiamen-Melbourne service in June; and Xiamen-Vancouver service in July. Most of these 5 international routes are operated by 6 787-8 aircraft. <br/>