MIAMI—Air France-KLM SA Chief Executive Alexandre de Juniac on
Monday warned that airlines are shifting capacity from ailing
long-haul markets to the profitable trans-Atlantic sector,
threatening to harm financial performance on those routes.
"Everyone is pushing capacity to trans-Atlantic," Mr. de Juniac
said on the sidelines of the International Air Transport
Association's annual meeting. "It is too much," he said.
The situation is compounded by planned aircraft deliveries that
are coming already for the current summer season, he said. "The
market will suffer," he added.
Also, continued weakness in the cargo sector where volumes are
recovering but yields aren't may force the airline to deepen
restructuring in its cargo operations. The company already has been
phasing out many of its cargo planes.
Mr. de Juniac also said he would hold talks with Alitalia to
continue cooperation with the Italian airline, which has announced
plans to exit a joint venture with Air France-KLM. "These JVs are
mutually beneficial," Mr. de Juniac said.
Talks are continuing to deepen ties with Etihad Airways, Mr. de
Juniac said. Those discussions have continued even as the two
airlines battle at a political level over market access, he
said.
Write to Robert Wall at robert.wall@wsj.com
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