Revenue up for Air France-KLM but losses deepen

Air France-KLM is “gearing up for a promising summer season,” particularly with the Olympics and Paralympic Games being held in Paris, but its first quarter performance was “challenging,” according to an earnings release issued by the airlines on Tuesday this week.

Total Q1 revenue for the company was up 5.1 per cent year over year to nearly €6.7 billion, but “as anticipated, our operating income was impacted by disruption costs and a slower cargo business,” said Air France-KLM group CEO Benjamin Smith. The disruptions occurred mainly in January and February and resulted from supply-chain issues, according to the company.

The airlines reported a Q1 net loss of €480 million compared with a loss of €143 million a year prior.

During the first quarter, Air France-KLM served nearly 20.9 million passengers, up 6.2 per cent year over year. Capacity for the quarter was up 4.5 per cent versus Q1 2023. Full-year capacity outlook is up 5 per cent versus 2023.

Its overall load factor in Q1 was 86 per cent, marginally up versus a year prior, and was 75 per cent across its premium cabins. Load factors were at their highest on services to the Caribbean and Indian Ocean (91 per cent) and to South America (90 per cent).