October 6, 2022
Chicago 12, Melborne City, USA
Travel

Air France-KLM: Corp. Travel ‘Ramping Up’

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Similar to what other air carriers have reported, Air France-KLM was hampered by the effects of the Covid-19 Omicron variant early in the first quarter, especially on short- and medium-distance routes, the company said Thursday. Disputes between Russia and Ukraine have pushed up fuel prices and slowed bookings. But according to the company, the march proved to be “very encouraging”.

“Despite the challenging context, that group has again posted positive [earnings before interest, taxes, depreciation and amortization] And strong bookings have been recorded for the following quarters, “said Air France-KLM CEO Benjamin Smith in a statement. [visiting friends and relatives] Demand across our global network. “

Corporate travel demand recovered nearly 70 percent “in the quarter” compared to the 2019 level, according to a presentation by the company that firmly performed Air France-KLM’s long-distance and small and medium-sized enterprise segments.

Air France-KLM reported first-quarter capacity of 75 percent of 2019 levels for the same period with yields above 2019 levels. The March long-distance load factor for both premium and economy-plus classes was 80 percent. The company also reported revenue of € 4.5 billion ($ 4.7 billion), more than double the previous year and a net loss of € 552 million ($ 580 million).

The agency said total first-quarter passengers grew by more than 200 percent year-over-year to just over 14.5 million. Capacity increased by 67.8 per cent year-on-year to just 58,000 available seat kilometers.

Like Lufthansa, which also reported Q1 earnings on Thursday, the company’s fuel charges accelerated significantly in the quarter, rising 115 percent year-on-year to € 996 million ($ 1.05 billion).

Air France-KLM’s power outlook ranges from 80 percent to 85 percent for the second quarter and 85 percent to 90 percent for the third quarter compared to their respective quarters in 2019.

Related: Air France-KLM Q4 2021 earnings

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