AIR France-KLM has announced a significant increase in third-quarter profit, although concerns related to growing geopolitical tensions have somewhat dampened the benefits of robust summer demand, reports Bloomberg.
Operating income saw a 31 per cent year-on-year increase, reaching a record US$1.4 billion, slightly below the expectations of analysts.
Capacity reached 94 per cent of the pre-Covid crisis third quarter in 2019, falling just short of the company's target of a 95 per cent ratio.
Citi analysts noted that the results were 'broadly in line' with expectations but mentioned that fourth-quarter bookings were trailing behind 2022 levels.
Consequently, the company's shares declined 2.7 per cent.
This came after the shares closed at their lowest level since July 2022.
In a statement, the Franco-Dutch carrier reaffirmed its fourth-quarter and full-year passenger volume forecasts.
Additionally, it strengthened its balance sheet securing a $1.38 billion financing agreement with Apollo Global Management, linked to the air France-KLM rewards program, Flying Blue.
Air France-KLM CEO Benjamin Smith described the quarter as strategically active.
Mr Smith highlighted the Apollo transaction, an agreement to order widebody aircraft from Airbus SE, and the company's intention to invest in Scandinavian carrier SAS AB, aiming to enhance their offerings and connectivity in the Nordic region.
Furthermore, Air France-KLM has expressed interest in participating in the upcoming sale of the Portuguese flag carrier, TAP.
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Operating income saw a 31 per cent year-on-year increase, reaching a record US$1.4 billion, slightly below the expectations of analysts.
Capacity reached 94 per cent of the pre-Covid crisis third quarter in 2019, falling just short of the company's target of a 95 per cent ratio.
Citi analysts noted that the results were 'broadly in line' with expectations but mentioned that fourth-quarter bookings were trailing behind 2022 levels.
Consequently, the company's shares declined 2.7 per cent.
This came after the shares closed at their lowest level since July 2022.
In a statement, the Franco-Dutch carrier reaffirmed its fourth-quarter and full-year passenger volume forecasts.
Additionally, it strengthened its balance sheet securing a $1.38 billion financing agreement with Apollo Global Management, linked to the air France-KLM rewards program, Flying Blue.
Air France-KLM CEO Benjamin Smith described the quarter as strategically active.
Mr Smith highlighted the Apollo transaction, an agreement to order widebody aircraft from Airbus SE, and the company's intention to invest in Scandinavian carrier SAS AB, aiming to enhance their offerings and connectivity in the Nordic region.
Furthermore, Air France-KLM has expressed interest in participating in the upcoming sale of the Portuguese flag carrier, TAP.
SeaNews Turkey
