Air France-KLM reported its financial and operating results for the third quarter of 2022. The company highlighted the «solid results, driven by favourable travel demand and the continued transformation» of the company created by the merger of the largest airlines in France and the Netherlands.
«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», said Benjamin Smith, the company’s CEO.
The Air France-KLM executive highlighted the improvements in the operation after a difficult start to the year. However, he stressed that the situation remains unsatisfactory at some of the key points for its activity, such as Amsterdam-Schiphol Airport, KLM’s main base of operations.
Smith also praised the strong performance despite rising fuel prices and a general increase in inflation.
Air France-KLM’s key financial and operating results in the third quarter 2022
- Revenues of 8.1 billion euros, 503 million higher than reported in the same quarter of 2019.
- Operating income of 1.024 million euros, an increase of 897 million compared to 2021, with an operating margin 12.6% higher than in the same period of 2019.
- Net revenues reached 460 million euros during the third quarter, an increase of 653 million compared to the same period in 2021.
- The airline’s total capacity already reached 89% of the total available capacity in 2019.
- Air France-KLM carried 25 million passengers in the third quarter, 47.6% more than during the same period in 2021.
- The occupancy rate between July and September reached 88%, only two percentage points below that reported in the third quarter of 2019.
- Operational contingencies recorded at the Group’s main airlines hubs resulted in 60 million euros in additional compensation costs compared to the third quarter of 2019.
- The company reported positive operating free cash flow for the sixth consecutive quarter at 290 million euros.
- Net debt was reduced by 2.3 billion euros compared to reported net debt at year-end 2021.
- As of 30 September 2022, the company had 12.3 billion euros of liquidity and credit lines at its disposal.
Third quarter balances and projections for the last three months of the year
The company expects operating revenues to return to positive territory this year and to exceed 900 million euros.
For each respective period of 2019, Air France-KLM expects available seat kilometres to reach 85% recovery in the last quarter of the year, and to end 2022 with approximately 80% of full recovery. In that case, the company plans to continue on that path to reach 90% recovery during the first quarter of 2023.
«Air France-KLM remains confident in its ability to further increase capacity during the winter season», Smith said.
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