Air France-KLM cut its third-quarter capacity forecast, citing airport operational challenges.
The company forecasts capacity to reach 80% to 85% of pre-pandemic third-quarter levels, down from 85% to 90% in May.
“This summer’s robust rebound is testing the aviation industry,” CEO Ben Smith remarked.
“While Air France-KLM prepared for pre-pandemic demand levels, our carriers aren’t immune to global operational issues.”
Rapid tourism growth has led to workforce shortages, and rising inflation has cabin crews and pilots demanding higher compensation and improved working conditions.
This summer, KLM, Lufthansa, British Airways, and EasyJet (LON: EZJ) have all reduced flights and limited ticket sales.
KLM reported a dramatic surge in passenger numbers, long lines at Amsterdam’s Schiphol Airport, and staff shortages put heavy pressure on operations in May and June.
Air France-KLM outperformed quarterly expectations with core and net income returns.
Second-quarter income from current operations was 386 million euros and net profit was 324 million, both above estimates.
Strong summer demand should keep the company’s yields high until 2022, exceeding 2019 levels.
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