Air France-KLM warns on impact of terror attacks

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/>