Shares in KLM Royal Dutch Airlines tumbled today after the company warned fiscal first-quarter operating profit would fall substantially short of the euro 100 million posted in the year-ago period.
KLM shares opened 6.4 per cent down at euro 19.60 before recovering slightly in the opening minutes of trade.
KLM, which had said in May its results for the quarter would not match the previous year's levels, said the drop was due to declining revenues on its North Atlantic and Asia-Pacific routes, which affected both cargo and passenger businesses.
"It's what we had expected," one analyst said.
"But now that the traditionally busy summer season was seen suffering from lower demand as well, earnings for the full year are also likely to be affected," the analyst said.
Northwest Airlines, which operates a transatlantic partnership with KLM, said last month it expected a $50 million to $75 million loss in the second quarter due to the soft US economy and high fuel prices.