Air France (AF, Paris CDG) and partner KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) have announced they will defer delivery of ten B777-300(ER)s as a result of their current financial year's earnings before interest, tax, depreciation and amortization (EBITDA) expected to take a EUR 200million (USD243 million) knock due, in large part, to a devastating pilots strike in September and depressed international demand.
"The Group has decided to revise its 2015 and 2016 business plans to take into account the consequences of the pilots’ strike and of the weaker unit revenue trend that has developed since the summer. The Group is thus planning further unit cost reduction measures and a significant scale back in its investment plan," a filing said.
The aircraft were to have been delivered over the next two years of which five were due in 2015. However, according to Bloomberg, 'some' deliveries will be postponed starting in 2016. The Franco-Dutch carrier said the decline in global oil prices "reduces any gains from having more fuel-efficient aircraft."
Presently, the two airlines combined operate a total of forty-five B777-300(ER)s.
