Air France-KLM Adopts Price Cuts Amid Weakening Demand

Air France-KLM is reducing prices on transatlantic flights to ensure full economy cabins as international travel demand weakens. The company's economy fares are experiencing some decline, though premium cabins remain stable. CEO Ben Smith acknowledged the challenges posed by an economic downturn and new tariffs.

Air France-KLM is implementing price cuts for its transatlantic flights, aiming to maintain full economy cabins amid a dip in international travel demand, the airline's CEO Ben Smith disclosed to Bloomberg News on Wednesday.

While the airline's economy fares show a slight decline, Smith highlighted that premium cabins are enjoying stability. He remarked that the airline has not yet adjusted its flight capacity, though an economic downturn could introduce new obstacles.

Smith noted that the travel industry is vulnerable during economic downturns, labeling the situation as "uncharted territory." Air France corroborated Smith's statements. This development follows a sharp drop in European airline shares after President Trump's announcement of new tariffs on EU products.

(With inputs from agencies.)