Air France KLM Revenue Impacted By Protests in France

The violent protests across France took a toll on Air France-KLM Group’s revenue in December, yet another setback for the carrier which had a challenging year.

The anti-government protests cost the company about $17 million in monthly sales, according to a new report from Bloomberg.

In addition, the number of passengers who flew Air France and its local carrier Hop! Dropped about 0.2 percent when compared with December 2017. The Dutch-based arm of the company, KLM, however, grew 7.2 percent, according to Bloomberg.

Air France-KLM Group said December revenue was crimped by violent French street protests, capping a turbulent year for a carrier struggling to get past a damaging labor dispute and revamp of top management.

The news is just the latest challenge for the company, which was also impacted in 2017 by labor disputes and airlines/air-france-klm-ceo-quits-after-pay-dispute.html” rel=”nofollow”>shuffling of top management.

A new CEO, Ben Smith, took over the company in September 2017. Smith is hoping to end the pay dispute with French pilots, which last year triggered crew walkouts and resulted in the removal of his predecessor.

Smith reached a deal with labor groups in October, but the challenges with the pilots union remain unresolved.

Bloomberg also reported that the higher profits at KLM have been a cause of tension since airlines/air-france-and-bookingcom-announce-new-partnership.html” rel=”nofollow”>Air France took over the Dutch airline in 2004.

The Yellow Vest demonstrations that have impacted the airline kicked-off in November in response to rising fuel taxes and the high cost of living in France. Many of the protesters are demanding that President Emmanuel Macron resign.

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