Air France prepares for potential strike and raises ticket prices

A potential strike at Air France-KLM promises to wreck havoc in Europe’s air travel industry. The planned walk-out is scheduled to occur on May 22^nd, 2008, after French union leaders invited airline employees to join other workers across the country in a strike aimed at expressing their displeasure against government attempts to reform the country’s pension scheme. Six French unions have already made it clear that they would participate in the mass strike. It has not yet been confirmed whether any Air France-KLM employees will join the labour action, nor has there been any indication about how long the walk-out will actually last.

While the prospect of a strike lingers, Air France-KLM also made headlines earlier today, after announcing yet another airfare hike. The Franco-Dutch carrier has announced a €10 fee increase to all long-haul flights, in order to help offset the record high cost of jet fuel. This, however, represents the seventh such price increase and it also means that the average passenger on a long-haul flight will now have to pay over €100 ($156), simply as part of the fuel surcharge. The new fees will come into effect as of Friday, and those on medium-haul flights will not be exempted either from these increases, as they will have to pay €4 more each way. Domestic flights within France will also cost €2 more per ticket.

The first fuel surcharges were introduced in 2004. Air France-KLM did, however, try to reassure passengers by noting that it would cut the latest increase in half, once the price of oil shows signs of decreasing, or at least stabilizing.

www.airfrance.com