Shares
in Franco-Dutch airline group Air France-KLM fell over 5% on Tuesday after it
issued a profit warning.
The
firm said that it expected rising competition from other airlines on long-haul
flights, weak cargo demand, and currency restrictions in Venezuela to hit its
earnings.
Air
France-KLM revised its yearly earnings forecast down from 2.5bn euros to
between 2.2 and 2.3bn euros.
The
warning came just weeks after a
profit warning by rival Lufthansa.
"While
not representing a turning point in market trends, the June traffic figures
published today as well as bookings for July and August nevertheless reflect
the over-capacity on certain long-haul routes, notably North America and Asia,
with the attendant impact on yields," the company said.
"This
comes on top of the persistently weak cargo demand and the challenging
situation in Venezuela identified in the first quarter."
Currency
restrictions in Venezuela have preventing airlines from repatriating revenues
from ticket sales there.
Despite
the profit warning, Air France-KLM said that it still expected earnings to rise
over 20% compared with 2013.
BBC
Business
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