Move comes as airline industry reacts to uncertainty over Iran war and increase in price of Brent crude
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Air France-KLM has cut its capacity growth forecasts for this year as the Iran war drives up its fuel costs by billions of dollars.
The French-Dutch airline expects its fuel bill to increase by $2.4bn (£1.8bn) this year as a result of the surge in costs since the Middle East conflict began. In response, it has trimmed its expectations for capacity growth to between 2% and 4% this year, down from 3% to 5% previously.
The Air France-KLM chief executive, Ben Smith, said in a statement that fuel price increases were “expected to weigh on the coming quarters”, after the company reported a smaller loss than expected for the first three months of the year. Smith added that the operating environment remained “uncertain”.
