PARIS: Air France-KLM said on Wednesday its third-quarter operating profit more than halved to 247 million euros (315 million), while revenue fell 6.7 percent due to the combined effects of last month's pilot strike and a sluggish market environment.
On a like-for-like basis, revenue rose 0.2 percent and operating income fell just 18 million euros, it said. Europe's second-largest network carrier by revenue fine-tuned its estimate for the cost of the two-week strike, saying it had put a dent of 416 million euros in quarterly revenue and 330 million in the third-quarter operating result.
It confirmed that a combination of the strike and lacklustre demand would have a negative impact of around 500 million euros on its target of 2.2-2.3 billion euros in earnings before interest, tax, depreciation and amortisation (EBITDA) for 2014.
It said it would limit investments and accelerate cost controls next year to mop up the remaining effects of the strike and weaker unit revenue trends experienced since the summer. However, part of a delay in fourth-quarter bookings seen during the strike could be reduced "over the coming weeks".
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