Air France-KLM cuts profit forecast

Air France-KLM sent a further shiver through the airline sector today when it slashed full-year profit forecasts due to overcapacity on its US routes.

Shares in British Airways owner International Airlines Group slumped 5% in the wake of the warning, which comes weeks after Lufthansa cut forecasts for the next two years due to overcapacity and competition from Middle Eastern carriers such as Emirates or Etihad on US and European routes.