Air France-KLM posts higher Q2 profit
AIR France-KLM on Friday (Jul 28) reported bigger-than-expected quarterly earnings, boosted by an increase in the number of passengers carried between April and June, while the situation at airports is much better this summer after strikes and staff shortages last year.
Labour shortages caused headaches for travellers in 2022, in the first holiday season without restrictions following the Covid-19 pandemic.
“I am very glad to see that situation at airports is much better this summer, including at KLM’s hub at Amsterdam Schiphol Airport”, chief executive officer Benjamin Smith said in a statement.
He added that this season notably will serve as a test run for 2024, when France will host the Olympic and Paralympic Games, an event that will flood the French capital with visitors.
Air-France KLM’s operating profit increased by 347 million euros (S$506.9 million) to 733 million euros compared with last year, above the 663 million euros seen in a company-compiled consensus, while lower jet fuel price and higher yield compensating inflation translated into a higher margin of 9.6 per cent.
The carrier, which welcomed 24.7 million passengers across its network between April and June, said its capacity during the second quarter stood at 92 per cent of 2019 levels, the same as the group recorded in the first quarter.
The revenue per available seat kilometre (ASK), a measure used to compare airlines’ financial performance, grew by more than 12 per cent compared with the same period in 2022, driven by the long-haul network and the performance across the network except Asia, the group said.
The group, which is in talks with Apollo to fund a new commercial partners arm, confirmed its capacity outlook for the rest of the year, narrowed in May to around 95 per cent despite strong summer bookings due to delays on new aircraft deliveries. REUTERS
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