Air France-KLM sees ‘mixed trends’ during Olympics summer

Air France-KLM increased revenue and passenger numbers during the third quarter, despite lower international travel into Paris and less travel from France due to the hosting of the Olympics this summer.

The company’s third-quarter passenger network revenue was up by 1.8 per cent year-on-year to more than €7 billion.

Total network revenue increased by 2 per cent to nearly €7.4 billion as capacity increased 3.4 per cent, while the number of passengers carried increased 3.3 per cent to about 20.5 million. Operating income was €899 million, which was down by €192 million from Q3 of 2023.

CEO Benjamin Smith said: “The third quarter revealed mixed trends for the Air France-KLM Group. Revenue continued to rise, driven by increased capacity and strong underlying demand.

“However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements.”

Air France-KLM estimated that the impact of the Olympics will cost the group about €160 million – the company had already warned about this hit to bookings during the summer.

For the Air France brand, third-quarter revenue increased 3.1 per cent to more than €5.5 billion, while operating income was €732 million, which was a €74 million decrease from Q3 2023.

For KLM, revenue was up 3.6 per cent to more than €3.5 billion, while operating income was €396 million, which was a drop of €127 million on the same quarter last year.

Last week, the company also confirmed that it would introduce a GDS surcharge for business travel agencies from 1 January 2025, but this would be levied at the reduced rate of €3 for the first six months of next year.