Air France-KLM sees robust bookings after better-than-expected quarter
Air France-KLM said on Friday its 2023 bookings were almost back to pre-pandemic levels as it reported a better-than expected fourth-quarter operating profit with global travel demand seeing a rebound. The airline’s shares rose more than 6% in early trade, hitting their highest since June and outperforming the broader weak stock market. The pan-European Stoxx 600 was down 0.85% at 8:05 a.m. London time. The carrier reported its highest Q4 revenue at E7.1b ($7.55b), up almost 50% year-on-year. Operating profit fell 45% to E134m on the back of higher costs including fuel, but it beat estimates. “Early 2022 was a bit difficult with Omicron and the issues in Ukraine, but we had a fantastic summer, especially across the Atlantic,” Air France-KLM CEO Benjamin Smith told CNBC’s Charlotte Reed. “We had more capacity on the Atlantic than we did in 2019, Africa was always a market that was resilient throughout the crisis.” He added that the premium leisure market had “exploded” and was filling business class, first class and premium economy cabins, bridging the gap left by a lag in the return of business travel. Looking ahead, he said: “Demand is still strong, yields are good, capacity is quite tight in many of our markets, Paris is a very attractive market.” Last year was a difficult one with the travel industry struggling with pandemic-related restrictions and as prices of jet fuel and other key products soared due to the Russia-Ukraine conflict, CFO Steven Zaat said. Air France also lost E170m in revenue last year due to travel disruptions at Amsterdam’s Schiphol airport after the airport restricted capacity last year due to staff shortages. “I’m very happy that we can say now that 2022 Q4 ended better than where we ended in Q4 2019,” Zaat added. The company said it was on track to fully pay back French state aid by April 2023, reporting a net debt of E6.3b, down E1.9b from the previous year. Zaat, however, said staffing shortages at Schiphol airport may not be resolved before end-June.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-02-20/sky/air-france-klm-sees-robust-bookings-after-better-than-expected-quarter
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Air France-KLM sees robust bookings after better-than-expected quarter
Air France-KLM said on Friday its 2023 bookings were almost back to pre-pandemic levels as it reported a better-than expected fourth-quarter operating profit with global travel demand seeing a rebound. The airline’s shares rose more than 6% in early trade, hitting their highest since June and outperforming the broader weak stock market. The pan-European Stoxx 600 was down 0.85% at 8:05 a.m. London time. The carrier reported its highest Q4 revenue at E7.1b ($7.55b), up almost 50% year-on-year. Operating profit fell 45% to E134m on the back of higher costs including fuel, but it beat estimates. “Early 2022 was a bit difficult with Omicron and the issues in Ukraine, but we had a fantastic summer, especially across the Atlantic,” Air France-KLM CEO Benjamin Smith told CNBC’s Charlotte Reed. “We had more capacity on the Atlantic than we did in 2019, Africa was always a market that was resilient throughout the crisis.” He added that the premium leisure market had “exploded” and was filling business class, first class and premium economy cabins, bridging the gap left by a lag in the return of business travel. Looking ahead, he said: “Demand is still strong, yields are good, capacity is quite tight in many of our markets, Paris is a very attractive market.” Last year was a difficult one with the travel industry struggling with pandemic-related restrictions and as prices of jet fuel and other key products soared due to the Russia-Ukraine conflict, CFO Steven Zaat said. Air France also lost E170m in revenue last year due to travel disruptions at Amsterdam’s Schiphol airport after the airport restricted capacity last year due to staff shortages. “I’m very happy that we can say now that 2022 Q4 ended better than where we ended in Q4 2019,” Zaat added. The company said it was on track to fully pay back French state aid by April 2023, reporting a net debt of E6.3b, down E1.9b from the previous year. Zaat, however, said staffing shortages at Schiphol airport may not be resolved before end-June.<br/>
