July 25 (Reuters) - Airline group Air France KLM

reported a 30% drop in quarterly operating profit on

Thursday that was worse than analysts expected, citing unit

costs and higher fuel prices that also exerted pressure on

revenue across the broader sector.

Operating profit in the second quarter decreased by 220

million euros to 513 million euros ($556.55 million) compared to

last year, below the 547 million euros expected in a

company-provided consensus of analyst forecasts.

Shares fell 1.8% in morning trading.

The company said higher costs came from salaries linked to

labour agreements at both Air France and KLM, and higher tariffs

at Amsterdam Schiphol and Paris airports.

The group said it expected unit costs - the average cost

of flying an aircraft seat one mile - to rise 2% in 2024

compared to the previous year, against 1-2% estimated

previously.

It trimmed its annual capacity forecast to a 4% rise,

from 5% previously.

Air France KLM said it had taken robust measures to cut

costs since April, including a hiring freeze for support staff.

Cuts in marketing expenses and a 20% reduction of

discretionary costs should be implemented the rest of this year,

it said.

Revenues grew 4.3% to 7.95 billion euros between the months

of April and June, as expected, though the company noted that

the impending Olympic Games in Paris has had a 40 million euro

impact. The group had issued a profit warning earlier this

month, as the Games - from July 26 to Aug. 11 - spurred some

people to rethink their travel plans.

($1 = 0.9217 euros)