DALLAS — European airline group Air France-KLM (AF-KLM) released its third-quarter (Q3) financial results, with a solid performance for the summer. Moreover, Air France (AF) revealed its route network for the winter season.
For Q3 2023, the group’s revenue reached €8.7 billion (US$9.2 billion), a seven percent increase compared to last year. The operating result of €1.3 billion (US$1.4 billion) is €318 million higher than last year. These higher figures are due to an increase in the number of passengers the group carried during the quarter, eight percent higher this year with almost 27 million travelers.
The operating margin of the group is 15.5% overall, with Transavia (TO) being first with 18.5%, KLM (KL) at 15.7%, and Air France (AF) at 15.0%. This figure is again higher than last year and shows an increase in the group’s profitability. The group’s predictions for the full-year result remained unchanged.
Low-cost subsidiary Transavia posted strong Q3 results. Photo: Alberto Cucini/Airways
Financial Operations
When we look at the strong results, AF-KLM reduced its debt, which is now at €5 billion. According to French media, the group fully reimbursed its loan to the French government. This €4 billion loan was granted during the pandemic, to help the airline when the passenger demand was so low. Moreover, according to French news outlet Les Echos, the group also paid France €650m in interest, making the loan profitable.
During the summer, AF-KLM invested in its future with a new order for 50 Airbus A350s. Just before this order, the group announced the creation of a 50-50 joint venture with Airbus to provide services linked to A350 components.
Another major move for the group was its investment in SAS Scandinavian Airlines (SK), taking a share in the bankrupt airline and helping it recover financially. This investment allows the group to take a controlling share in the airline in a few years, and a new partner in…
read more airwaysmag.com
Ad Amazon : Books UFO
Ad Amazon : Binoculars
Ad Amazon : Telescopes
