Air France-KLM Posts Q3 Profits Despite Schiphol Issues
The Air France-KLM Group has enjoyed increased capacity, yields, and load factors, helping to boost its profits in Q3.
The Air France-KLM Group has enjoyed increased capacity, yields, and load factors, helping to boost its profits in Q3.
DALLAS - The Air France-KLM Group has announced an operating profit of €1.02bn (US$1.02bn) for the third quarter of July to September.
Net income also rose to €460m (US$457m), an increase of €653m (US$649m) compared to last year. Group revenues now stand at €8.1bn (US$8bn), and a full-year operating profit of over €900m (US$895m) is currently forecast with a positive outlook for winter 2022/2023.
Broken down between the airlines, Air France (AF) contributed the biggest amount, with €570m (US$567m). Meanwhile, KLM (KL) added €443m (US$441m) and Transavia (HV) €123m (US$122.6m). The group's maintenance arm also contributed €46m. This was despite the numerous issues that KLM has faced at its Schiphol Airport (AMS) hub.
In the official Q3 statement, AF-KL added that the increase has been 'driven by an increase in capacity, load factor, and yield.' In total, 25 million passengers were welcomed by the three airlines, a 47.6% increase in the same period as last year.
Capacity rose by 29.1%, traffic increased by 70.7%, while load factor grew by 21.6 points compared to 2021 numbers. Meanwhile, its yields increased by 18% in its premium cabins and 22% in economy against 2019 levels.
The group also enjoyed increasing cargo demand, with capacity growing by 15.9% in Available Ton Kilometers. This was down to the increase in global belly capacity. This was still 7% down on pre-pandemic levels. Cargo revenues for Q3 2022 were, however, 61% higher compared to 2019.
Group CEO Mr. Benjamin Smith said, "Thanks to solid preparation and to our agile approach to capacity, Air France-KLM was able to make the most of the strong travel demand this quarter."
The Ceo explained, "While the situation remains unsatisfactory in some key airports-notably impacting KLM at its Amsterdam Schiphol hub, we saw significant improvements following the operational challenges that had erupted earlier this year. The group posted a strong operating result in spite of rising fuel costs and inflation, and the group remains confident in its ability to further increase capacity during the Winter season."
He continued, "Going forward we will continue to implement our transformation plan and accelerate our sustainability efforts, as illustrated by the recent signing of long-term SAF supply contracts. This reinforces our position as a responsible leader in transportation, as well as our commitment to being frontrunners in the decarbonization of our industry."
Featured Image: The group's third quarter result have been driven by a strong performance of the entire network. Photo: Tony Bordelais/Airways
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