Air France-KLM raises caution over France as a destination

A warning about “France as a destination” has been issued by Air France-KLM as recent terror attacks hit sales.

The airline group reported a 5.2% drop in second quarter revenues to €6.22 billion over the same period last year.

A strike by Air France pilots also reduced profit by an estimated €40 million.

However, quarterly operating profit rose 138% to €317 million, partly due to lower fuel costs.

Air France-KLM joined other European airlines in warning of the impact from the “high level” of geopolitical and economic uncertainties.

“The global context in 2016 remains highly uncertain… resulting in an increasing pressure on unit revenues and a special concern about France as a destination,” the airline said.

Air France-KLM’s results were issued the morning after a priest was killed by two armed men in Normandy, adding to a spate of attacks in Europe that has affected demand for travel and coming on top of the aftermath of the Brexit vote.

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