Air France-KLM Warns Suppliers Against Tariff Price Hikes

Air France-KLM has issued a warning to parts suppliers, stating it will respond “aggressively” to any rapid price increases linked to global tariffs. The message came from Group CFO Steven Zatt during an investor call discussing the airline group’s latest financial results.

Zatt addressed concerns about U.S. tariffs announced under former President Donald Trump, noting that while the situation is still unfolding, any aggressive trade action by the U.S. could backfire, especially as the country is a major aviation exporter. “It all depends for us more on the retaliation from Europe,” he said, emphasizing that Air France-KLM is closely monitoring potential supplier cost increases. “We will aggressively reply to any suppliers which are intending to increase their fees,” he added.

The group does not expect significant disruption in aircraft deliveries, as most orders are from Airbus. Only four Boeing 787-10s are scheduled for delivery to KLM this year, minimizing exposure to U.S. manufacturers.

Regarding transatlantic travel demand, Zatt noted a mixed trend. There is slight growth in business and premium economy travel on U.S. routes, while economy class bookings show some softness. He also pointed to rising interest in flights to Canada and Latin America.

Zatt acknowledged that forecasting remains difficult due to shortened booking windows. “I don’t see a shift in any capacity through the third quarter,” he said. “Perhaps in the fourth quarter, if necessary, we’ll start to relook at that. But as of today, we’re maintaining our capacity across the network as planned.”

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com