Air France-KLM To Increase Summer Capacity

March 9, 2016

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Air France-KLM plans to increase capacity on its services by 1.5 percent this summer, driven by a 15 percent increase on flights operated by its Transavia budget carrier.

The Franco-Dutch airline group said it would offer 0.1 percent more long-haul capacity on its network as it resumes services between Paris and Tehran, increases flights to the United States and China, and launches a new route between the French capital and Astana.

KLM is suspending its summer service to Dallas because of lower demand in the gas and oil market, Air France-KLM said in a statement.

The medium-haul network will offer 0.7 percent more capacity, with 13 new routes across Europe, while Transavia will add 36 new destinations.

Air France-KLM is cutting staff costs and restructuring its network to better compete with deep-pocketed Gulf airlines and fast-growing European low-cost carriers.

Weak oil prices have reduced the cost of fuel and provided some relief for the carrier, but it has nonetheless warned that pressure on ticket prices from competition could eat into those benefits this year.

(Reuters)