Air France-KLM Slashes Prices Amid Transatlantic Travel Turbulence

Air France-KLM is lowering prices to fill economy seats on transatlantic flights due to decreasing international travel demand. While premium cabins remain stable, the airline's CEO, Ben Smith, acknowledges potential challenges posed by economic downturns and U.S. tariffs on EU products like Airbus planes.

Amid declining demand for international travel, Air France-KLM is taking a significant step by reducing prices to ensure full economy cabins on its transatlantic flights. Speaking to Bloomberg News, the airline's CEO, Ben Smith, indicated that while economy-class fares show some softness, premium cabins are maintaining relative stability.

Despite these trends, Air France-KLM has not yet made changes to its flight capacity. However, Smith highlighted that an economic downturn could introduce new challenges, particularly following U.S. President Donald Trump's announcement of a 20% tariff on European products, including Airbus planes, which has caused shares of European airlines to fall.

The European Union is preparing to launch retaliatory measures against Trump's tariffs. Smith noted that the travel industry is particularly vulnerable during economic downturns, describing the current situation as uncharted territory. Air France has yet to respond to requests for comment from Reuters.

(With inputs from agencies.)