Air France-KLM Reveal Cost of Pilot Strikes
330 million euros in profits lost year on year
Strikes in September this year by Air France-KLM pilots lasted for 14 days and the company has revealed today the results of the actions taken on the third quarter figures.
Striking from 15th September to the 28th, pilots were protesting against plans to develop a low-cost subsidiary, Transavia France. An estimated at €330 million was lost on operating income, (equating to profits of €247 million against €641 million in 2013). But the damage was not only financial, the grounding of half of their planes caused a drop in traffic of 15.9% for passengers and cargo, 17.7% for the month of September. Many passengers were unhappy with the service received, despite prior warning of travel difficulties and many were left stranded or severely delayed. This has no doubt damaged their reputation.
Combined with a market that "will remain rather weak," the group mentioned that it expects a negative impact of approximately €500 million in operating 2014, reports Nicematin.com.
"The group is also committed, without undermining the foundations of the plan Perform 2020 (Growth Plan) to limit the consequences of the strike and the deterioration in unit revenues made during the summer, tailoring programs investment by accelerating the reduction of unit costs and managing dynamically its portfolio of assets,"said the group.
Air France-KLM launched their 'Perform 2020' growth plan with an emphasis on the development of Transavia to counter competition from other low-cost airlines in Europe.
