Air France-KLM says 'Transform 2015' plan on track but flagged tough operating environment to come

Air France-KLM noted (25-Jul-2014) its 'Transform 2015' plan remains on track but flagged a tough operating environment placing downward pressure on group results. The airline said overcapacity on long-haul services to the US and Asia is impacting yield and comes on top of "persistently weak cargo demand" and a "challenging situation" in Venezuela. Over the last 12 months Air France received one additional A380 aircraft during the period to a total of 10 and one A320 to a total of 46. KLM Cityhopper received four Embraer E190s and retired seven Fokker 70s. Transavia took delivery of five new Boeing 737-800 aircraft to total of 36, while Hop! received 3 ATR 42-500s and retired one ATR 72-200, three CRJ-100s and two Embraer E145s. The airline intends to maintain strong capital discipline to remain on-track to achieve a debt reduction of EUR4.5 billion by 2015. [more - original PR]