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Air France-KLM posts stronger-than-expected Q1 rebound

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Air France-KLM posted a stronger-than-expected recovery in the first quarter due in part to low oil prices, but warned of geopolitical risks and airline overcapacity while reaffirming its targets for the year.

[PARIS] Air France-KLM posted a stronger-than-expected recovery in the first quarter due in part to low oil prices, but warned of geopolitical risks and airline overcapacity while reaffirming its targets for the year.

The Franco-Dutch airline group reported earnings before interest, tax, depreciation and amortisation (EBITDA) of 266 million euros (US$305.5 million), compared with a loss of 26 million in the first quarter of last year.

The carrier also reduced its operating loss to 99 million euros from 417 million a year earlier, it said in a statement on Wednesday.

The company, which has just named a new chief executive, reported a 0.4 per cent gain in revenue to 5.605 billion euros.

Analysts had on average forecast positive EBITDA of 162 million euros and an operating loss of 189 million on revenue of 5.541 billion, according to a poll conducted for Reuters by Inquiry Financial.

REUTERS