Air France-KLM has put the total cost of last month's two-week pilots strike at 500 million euros ($632 million). As, Hayley Platt reports that's enough to wipe more than a fifth off the group's estimated full-year core profit and it sent shares to a 13-month low.
Air France KLM is licking its wounds after totting up the cost of last month's 2-week long pilots strike. It's estimated to have cost them 500 million euros, sending shares to a 13-month low. Bookings in the fourth quarter fell between 1-2 percent. And total passenger numbers slipped almost 16 percent. Overall the group lost the equivalent of a fifth of its estimated full-year core profit. And IG's Alastair McCaig says there could harm to come. SOUNDBITE: Alastair McCaig, Market Analyst, IG, saying (English): "When they stopped the strike there wasn't really any resolution to the disagreement between the two parties and there's every worry that there may well be strikes somewhere further down the road. Obviously we saw easyJet benefit quite greatly on the back of passenger numbers over the course of September and this will tarnish their reputation going forward." France is no stranger to industrial action. Many say the strong unions are partly to blame for the country's economic woes. SOUNDBITE: Alastair McCaig, Market Analyst, IG, saying (English): "As far as Air France is concerned you do feel to a certain extent this is a little bit of a template for France in itself in so much as union strength is really hampering the company's ability to be competitive in the euro zone and it really does need to be looked at." The airlines share price dropped 5% on the news to a 13-month low. With expansion plans for a low cost service also postponed as a result of the strike further headwinds are likely.