(Updated throughout with details, quotes, analyst commentary and stock quotes)
by Dina Kartit, Juliette Portala and Toby Sterling
Oct 28 (Reuters) – Air France-KLM on Friday lowered its traffic forecast for the last three months of 2022 as its Dutch branch suffered the impact of flight cuts at Amsterdam’s Schiphol Airport.
The shares of the Franco-Dutch airlines group fell more than 14% at 2:25 p.m. GMT on the Paris Stock Exchange and were heading for one of their worst sessions in almost 25 years, investors fearing that it would not be able to take advantage of the rebound in travel demand following the end of COVID-19 restrictions.
European airlines have faced staff shortages and strikes for pay rises amid high inflation since April, forcing them to cut thousands of flights and limit ticket sales for next winter .
Amsterdam’s Schiphol Airport, one of the busiest in Europe, said last month that daily passenger traffic would be reduced by around a fifth until at least March 2023 to ensure the safety of travelers and passengers. employees, which forced KLM to limit ticket sales for the winter.
The Dutch airline, the main carrier at Schiphol, has faced steep cost increases due to high fuel prices, inflation, supply chain difficulties and the costs associated with changing reservations and compensation for passengers, she said in a statement.
A KLM spokesman said airport problems had cost it 175 million euros since April.
Air France-KLM thus plans to use around 85% of its capacity prior to the COVID-19 crisis in the fourth quarter, compared to a previous range set between 85% and 90%.
ODDO BHF analyst Yan Derocles said the outlook is disappointing, especially after upbeat comments from German airline Lufthansa on Thursday and British Airways owner IAG on Friday. Air France-KLM, however, reported on Friday an operating result higher than expected in the third quarter, a summer period generally favorable to the airline sector, thanks in particular to a recovery in demand and despite a drop in seat capacity and pressure on its costs.
The group recorded an operating result of 1.02 billion euros, higher than the 844 million euros anticipated by a consensus established by the company. (French version Diana Mandiá, edited by Camille Raynaud and Kate Entringer)