Air France-KLM Posts Loss

Air France-KLM has posted its 2023 financial results which included a loss making fourth quarter as it battled with several challenges.

Air-France KLM has posted a loss for the fourth quarter of 2023, with an operating loss of 56 million euros recorded.

Ultimately, for the group, this is down from the 134 million euro profit recorded for the same quarter one year prior in 2022.

In the final quarter of 2023, Air France-KLM says it could carry 22.3 million passengers, which was a rise year over year and was achieved through network expansion.

Across the 2023 calendar year, the group continued to rebuild across all fronts and find ways to enhance its connectivity worldwide. Alongside an increase in passengers carried of 6.4% in the final quarter, there was also a capacity lift of 6%.

While traffic and capacity grew, the group noted that a load factor dropped slightly towards 85.3%. This represented a 0.6% point drop; however, it shouldn’t necessarily be a shock with the group expanding through the year.

Revenues for the group were a strong point, with record revenue generated across the full year of 30 billion euros, up a staggering 14%, with operating profit increasing by almost double to 1.7 billion euros for the full year.

Like some other freight operators worldwide, the Air France-KLM group did report its cargo business dropped, with revenue decreasing 23%. Ultimately, in the future, a commitment to the A350F should enhance its connectivity towards key markets.

Air France-KLM will remember 2023 as a year where they strongly committed to their operational and financial performance. Equally, the group placed a significant amount of focus on sustainability. The year was highlighted with landmark orders for the A350 series, including purchase rights.

Once these aircraft are delivered, several airlines in the group will be able to rapidly expand their fleet renewal efforts by bringing in the latest generation of aircraft.

2024 is slated to be another important year for the airline and to attempt to mitigate any challenges that may come their way that notably impacted the fourth quarter performance. Outlook sees Air France-KLM reaching capacity levels 5% higher than 2023 as expansion continues.

Daniel Fowkes
01 Mar 2024
· Airlines 

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