Air France-KLM has announced its financial and operational results for the third quarter of 2022. The company underlined the “demand for convenient travel and the solid results of continued transformation” of the company, which was created by the merger of the largest airlines in France and the largest airlines in the world. Holland.
“Thanks to our robust readiness and agile approach to capacity, Air France-KLM was able to make the most of strong travel demand this quarter,” said Benjamin Smith, CEO of the company.
The Air France-KLM executive highlighted the improvements in the operation after a rough start to the year. However, he stressed that the situation is unsatisfactory at some key points for its operation, such as KLM’s main base of operations, Amsterdam-Schiphol Airport.
Smith also praised the strong performance despite rising fuel prices and an overall increase in inflation.
Key financial and operational results of Air France-KLM in the third quarter of 2022
- Revenue of € 8.1 billion, 503 million higher than reported in the same quarter of 2019.
- Operating income of €1,024 million, an increase of 897 million compared to 2021, with a 12.6% higher operating margin compared to the same period of 2019.
- Net revenues reached 460 million euros in the third quarter, up 653 million compared to the same period of 2021.
- The airline’s total capacity reached 89% of the total available capacity in 2019.
- Air France-KLM carried 25 million passengers in the third quarter, 47.6% more than in the same period in 2021.
- The occupancy rate between July and September reached 88%, just two points below what was reported in the third quarter of 2019.
- Operational contingencies recorded at the group’s main airline hubs resulted in an additional compensation cost of €60 million compared to the third quarter of 2019.
- The company reported positive operating free cash flow of €290 million for the sixth consecutive quarter.
- Net debt decreased by 2.3 billion euros compared to net debt reported at the end of 2021.
- As of September 30, 2022, the company has a liquidity and credit limit of 12.3 billion Euros.
Third quarter balance sheets and projections for the last three months of the year
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The company expects operating income to return to positive territory this year and exceed €900 million.
For each relevant period of 2019, Air France-KLM expects available seat mileage to reach 85% improvement in the last quarter of the year and to complete 2022 with approximately 80% full recovery. In this case, the company plans to continue on this path to reach a 90% recovery in the first quarter of 2023.
“Air France-KLM is confident in its ability to further increase capacity during the winter season,” Smith said.
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