PARIS (Reuters) – Air France-KLM  warned on Thursday of a 150 million to 200 million euro ($162 million to $216 million) hit to earnings by April as it contends with the China coronavirus epidemic’s “brutal” impact on the airline industry.

The Franco-Dutch group’s shares fell sharply after its full-year results and 2020 outlook, which was in the spotlight as markets watch for economic effects well beyond the Asian center of the outbreak.

Like many global airlines, Air France-KLM has canceled flights to mainland China until the end of March, basing its impact estimate on the assumption that flights will then will resume progressively.

“That’s the hypothesis we’re using for the moment, but we don’t know how credible it is,” Chief Financial Officer Frederic Gagey said. “Obviously if it lasts longer, the impact will be heavier.”

Air France-KLM shares were down 3.8% at 9.36 euros at 1102 GMT, with travel and tourism stocks hit by mounting concerns over the spread of the virus across Asia.

For Air France and stablemate KLM, as for global peers, the January outbreak came just as an easing of global trade tensions seemed to promise stronger demand in 2020.

Reuters

https://www.reuters.com/article/us-air-france-klm-results/air-france-says-coronavirus-impact-could-climb-above-200-million-idUSKBN20E0KN

Photo Rob Vogelaar