More travelers push Air France-KLM's turnover much higher in first quarter

Aviation group Air France-KLM saw its turnover increase sharply in the first quarter of this year. Air France, KLM, and Transavia had more planes in the air, and they were also fuller. But as costs also rose sharply, it resulted in a limited increase in operating profit. And after deducting things like interest payments and taxes, the airline combination still closed the quarter with a loss, albeit a smaller one than a year earlier.

KLM’s turnover increased by a third to 2.5 billion euros. The capacity of KLM aircraft increased by 15 percent. Turnover rose further due to fuller planes and higher ticket prices. But jet fuel, in particular, cost much more at the beginning of the year. KLM spent 79 percent more on that, also because it has to fly around Russia on several routes.

Bookings for the current period and the summer quarter are also going well, both at KLM and sister company Air France. They are higher than last year. Air France-KLM, therefore, hardly notices the high inflations and cost cuts consumers are making. The demand for air travel in the summer remains strong, also outside Europe.

That is especially true for budget subsidiary Transavia because despite problems with canceled flights, the capacity this quarter is about a fifth higher than last year. That growth was even greater in the first quarter, but the flights were also fuller. And ticket sales through September are ahead of last year.

Transavia’s results lagged somewhat in the first quarter, but that has to do with Transavia being a holiday flyer. The airline is more affected by exchange rate differences because, unlike Air France and KLM, it sells all its tickets in euros.

With the repayment of all debts guaranteed by the Dutch and French governments, Air France-KLM’s debt burden also fell sharply. At the end of March, it amounted to around 5.5 billion euros. That is 1.5 times the operating profit and at the lower end of what ht aviation group wanted to achieve this year.