Last checked at 
* Carrier says attacks hurting demand for long-haul flights
* CFO sees unit revenues declining in July, August
* Shares rise after Q2 earnings beat expectations (Adds shares, CFO comments, analyst comment)
PARIS, July 27 (Reuters) - Air France-KLM joinedother European airlines in warning of the impact on revenue thisyear of recent attacks in France and political upheavalelsewhere as it reported a drop in sales and braced for a strikeby its staff.
Second-quarter results were issued hours after a priest waskilled by Islamist militants in France, adding to a spate ofattacks in Europe that has knocked demand for travel and comingon top of the uncertainty created by Britain's vote to leave theEuropean Union.
"There is clear pressure on France as a destination," ChiefFinancial Officer Pierre-Francois Riolacci said, addingtravellers from China and Japan in particular were staying awayand that lower ticket prices would more than cancel out anysavings from lower fuel bills this year.
EasyJet PLC last week said it was unable to give anearnings forecast, while Germany's Lufthansa warned onprofit. Low-cost carriers Ryanair and Wizz Air maintained their targets, but said they will shift capacity awayfrom Britain after its vote to quit the EU.
Riolacci said he expected unit revenues - a measure ofpricing - to decline in July and August as a result of therestrained demand and overcapacity across the industry. Unitrevenues fell 4.1 percent in the second quarter when adjustedfor currency.
He said, however, the group had seen unit revenues fall lessthan rivals because it had been more constrained on the amountof capacity it offers.
Air France-KLM plans to grow capacity 1 percent this year.Lufthansa last week trimmed its growth plans to 5.4 percent from6 percent.
"Unfortunately European airlines as a whole have been on agrowth binge powered along by lower cost fuel. Binges tend toend badly and we see this one looks to be no exception," RBCanalyst Damian Brewer said.
The Franco-Dutch group is also dealing with more strikes andits two main cabin crew unions called for a week of walkouts,starting Wednesday, after talks on renewing a collective labouragreement broke down. New Chief Executive Jean-Marc Janaillacsaid he would do his utmost to restore trust between managementand staff.
Still, its shares rose on Wednesday, one of the top gainersamong travel and leisure stocks, as lower fuel andcost-cutting efforts led to better than expected results for thesecond quarter. Shares in the carrier are down 23 percent so farthis year.
Although revenues fell 5.2 percent to 6.22 billion euros,earnings before interest, tax, depreciation and amortisation(EBITDA) improved to 728 million euros from 557 million lastyear, beating expectations for 629 million in a Reuters poll.
The carrier also maintained financial targets to cut unitcosts by around 1 pct in 2016 and significantly reduce net debt. (Reporting by Victoria Bryan and Cyril Altmeyer, Editing by TimHepher and Elaine Hardcastle)
