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Air France-KLM books biggest quarterly profit ever

Air France-KLM had its best quarter ever this summer. For the period from July to September, the aviation group booked an operating profit of 1.3 billion euros, breaking the record of six years ago. Profit rose by almost a third in the third quarter compared to last year.

Due to the strong demand for airline tickets, planes were fuller, and Air France-KLM could charge more for a ticket. As a result, the merged company more than made up for higher fuel and wage costs.

Budget airline Transavia, in particular, grew strongly despite the problems caused by a shortage of available aircraft. Hundreds of flights were canceled during the summer holidays as a result. However, the capacity was still 14 percent higher than a year earlier and well above the level before the coronavirus crisis. The entire group was at 94 percent of the 2019 level. By next year, the pandemic’s effects will likely be wholly erased.

Air France-KLM brought in 7 percent more money in recent months than a year earlier. In the second quarter, turnover growth was still 14 percent, but that was because there was much less travel in the same period in 2022 due to the coronavirus crisis. CEO Ben Smith now speaks of a “solid quarter, helped by strong demand in the summer period.” The net profit, which also deducts costs like taxes and debts, more than doubled to 900 million euros.

KLM is having more difficulty recovering from the coronavirus period than its French sister company. KLM increased capacity in the past year by 5 percent and Air France by 7 percent. The Dutch branch made a profit of 539 million euros, compared to 806 million euros for Air France. The group’s freight division remains a concern, but according to Air France-KLM, the one-third decline in turnover is stable compared to earlier this year.

The capacity on flights to China and Japan is still only about half of the 2019 level, despite the fact that the number of flights to those countries has already increased significantly this year after the relaxation of local coronavirus restrictions, especially in China. Air France-KLM even made less on its flights to Asia and the Middle East last quarter than last year.

South America, on the other hand, is very popular. The planes in that direction are the best-filled of all the areas the group flies to. North America also showed growth.

https://nltimes.nl/2023/10/27/air-france-klm-books-biggest-quarterly-profit-ever Air France-KLM books biggest quarterly profit ever

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