Air France-KLM Third Quarter Profit Up 13 Pct

November 3, 2016

Air France-KLM reported a third quarter net profit of EUR€544 million, a 13 percent increase on last year.

Operating profit for the period dipped 13 percent, however, to EUR€737 million from EUR€880 million in 2015. Revenue too was down in the quarter to end September at EUR€6.94 billion, from EUR€7.31 billion.

Total operating costs were 3.5 percent lower at EUR€6.2 billion, from EUR€6.4 billion.

Air France-KLM said the impact of the Air France cabin crew strike in July/August was estimated at EUR€90 million.

Capacity (in available seat km) was virtually static with a 0.1 percent increase, but unit revenue (per available seat km) dropped 6.5 percent. Load factor was down 1.1 percentage points at 87.5 percent.

“The increasing pressure on unit revenue compared to the previous quarters reflected the weak supply-demand balance in the different regions of the network and weak flows to France as a destination,” Air France-KLM said.

With cargo revenue down 16.6 percent, “the Group continued to restructure its Cargo activity to address the weak global trade and structural air cargo industry overcapacity.”

Cargo capacity was reduced by 3.1 percent during the quarter.

(Airwise)