Air France KLM operating profit declines 16% in Q3 2019

Darren Wood
By Darren Wood November 1, 2019 11:06

Air France KLM operating profit declines 16% in Q3 2019

Air France KLM’s operating profit has declined by 16% in the third quarter of 2019 as it struggled with higher fuel prices.

During the quarter, Air France KLM made an operating profit of €900 million, down from the same period in 2018.

The 2019 fuel bill is now expected to rise by €600 million, above the previously €550 million, to €5.5 billion. 

Net income was also down 53% at €366 million, seeing a 2% gain in revenue to 7.7 billion. Capacity expanded 2.3% and traffic by 2.6%. 

In the three month period, passenger numbers rose 2.1% in the third quarter to 29.1 million, load factor also saw a slight increase by 0.2% coming in at 89.8%.

However, unit revenue slipped 0.6%, and is poised to decline further, Air France KLM said. 

Air France KLM chief executive Ben Smith said: “Based on long-haul forward bookings – on average ahead of last year – and renewed commitment to a strict cost discipline, we are confident that we can deliver on our annual objectives of reduced unit cost and stable leverage ratio.”

Darren Wood
By Darren Wood November 1, 2019 11:06