Air France-KLM positive on ticket prices, takes pensions charge

Air France-KLM expects ticket prices to be positive in Q1 this year and will offer more seats on routes to Asia and Latin America to meet demand, although competition from high-speed trains was biting in France. The Franco-Dutch airline reported Friday an operating result of E1.488b, up 42% but slightly missing the average analyst forecast for E1.53b in a company compiled consensus. The group reported a net loss of E274m for 2017 due to a E1.4b charge linked to a new pension deal for KLM pilots and cabin crew. Like other major European airlines, the Franco-Dutch carrier benefited from low oil prices and strong travel demand last year, while the collapse of Monarch and Air Berlin has removed some competition from the market. Air France-KLM is also benefiting from a return of travellers from Asia and Latin America. It plans to increase capacity by 3-4% overall on its main passenger network this year. “We have been helped by the good environment,” CFOFrederic Gagey said, adding Air France-KLM’s increase in profit was also helped by stable unit costs. The group had set an initial target early last year to reduce unit costs by 1-1.5%, but added caveats to that at its Q3 results. It said it was aiming for a reduction of 1-1.5% this year, excluding the impact of currency, fuel and pension charges. Gagey said forward-bookings on long-haul flights were up 1 percentage point in February, up 4 percentage points in March, down 1 percentage point in April because of Easter, and up 2% for May.<br/>