Air France-KLM shares sink as travel chaos darkens outlook

Air France-KLM Friday cut its capacity forecast and its Dutch arm warned of losses due to prolonged curbs on flights at Amsterdam's Schiphol airport, prompting a major share sell-off. The carrier's shares dropped more than 16% and were set for one of their biggest one-day falls in almost 25 years as investors worried it may miss out on a travel boom spurred by the end of COVID-19 lockdowns. Air France-KLM and British Airways-owner IAG beat earnings expectations for the seasonally strongest Q3 on Friday, while Finland's national carrier Finnair reported its first positive quarter since the pandemic took hold in 2020. But the region's airlines are struggling with staff shortages and labour disputes as cabin crews and pilots demand better working conditions and higher wages to offset inflation. Schiphol, one of Europe's busiest airports, said last month daily passenger numbers would be reduced by around a fifth until at least March 2023 to guarantee the safety of passengers and employees, forcing KLM to limit ticket sales for the coming winter. The Dutch airline, the main carrier at Schiphol, has faced sharp cost increases because of high oil prices, inflation, supply chain shortages and costs associated with rebooking and compensating passengers, it said in a statement.<br/>