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Wednesday, September 27, 2023

Air France-KLM posts profit

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The Air France-KLM Group announced its consolidated 2022 full-year results on February 17. The results indicated combined revenue of €26.4 billion and net income of €0.7 billion.

The load factor is at 84%, and capacity is back to being 85% of what it was in 2019, the final year before COVID.

More than 83 million people were transported by all of the Air France-KLM group’s carriers, including Transavia, last year. This is approximately twice as much as the amount for the previous year when the COVID pandemic’s effects were still being seen.

With a total group operating profit of €1.2B, Air France-KLM is now in an even stronger position than it was in 2019 (4.5% vs. 4.2%) in terms of operating margins.

This was partially brought on by cost savings, as the group’s unit expenses per ASK fell (-4.5%). In its presentation of its view for the future, Air France-KLM committed to keep cutting expenses and, over the medium term, raising the operating margin to 7-8%.

According to Mr. Benjamin Smith, Air France-KLM Group CEO: “We close out the year with a positive net income, having turned the page on COVID, and look to the future with confidence in our ability to address the challenges ahead.”

Additionally, he emphasized the value of the strategic business alliance with the CMA CGM Group, especially in terms of boosting its cargo operations. The Air France-KLM Group’s largest private stakeholder at the moment is this logistics and freight provider.

With only €2.5 billion remaining at the end of 2022, the airline group has continued to pay back the financial assistance it received from the French government. It anticipates paying off the balance in full by March 2023 using money acquired from sustainability-linked bonds and cash on hand.

Between March and April 2023, an additional €1.2 billion that was given under the EU State Aid Covid Temporary Framework will also be paid back. For this reason, Air France-KLM issues a range of financial products.

The company’s decarbonization activities, including investments in SAF and fleet renewal, are also included in the annual report. Over the course of the year, the fleet’s medium- and regional-range aircraft witnessed a net decrease while its long-range aircraft increased.

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