Transportation

Air France Cuts Fares to Fill Transatlantic Budget Seats

WATCH: Air France CEO Ben Smith talks about travel demand.Source: Bloomberg
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Air France-KLM’s top executive said the carrier is cutting prices to keep its transatlantic economy cabins full as airlines grapple with signs of faltering international travel demand.

The European airline is seeing “slight softness” for economy-class fares and “relative stability” in its premium cabins, Chief Executive Officer Ben Smith said on Wednesday. The trends have not pushed the company to shift its flying capacity so far, he said, but a recession would pose new risks.