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7th February 2012
Air France-KLM doubled its net profit in the second quarter to €733million citing high demand in air travel despite rising inflation which has increased costs. The Group reported net profit of €604 million in the first half (H1) of 2023 with an increase of 13.7% as compared to H1 of 2022 when the profit was €324 million.
The Group reported sales of €7.6 billion compared to 6.7bn a year ago boosted by an increase in passengers and higher ticket prices, achieving a record operational margin of 9.6%. The Group reached this capacity despite being down 8% compared with 2019, before the pandemic.
A lower jet fuel price and a higher yield compensating inflation accelerated the growth in operating result and translated into a margin at 9.6%. As a result, compared to last year, the Group’s net income strongly grew by €280 million, amounting to €604 million, supporting the equity restoration.
The adjusted operating free cash flow in the second quarter amounted to €557 million, a reduction of €975 million compared to last year. The Group’s adjusted operating free cash flow in the second quarter amounted to €557 million, a reduction of €975 million compared to last year while the net debt ended at €4.9 billion, an improvement compared to year end 2022 of €1.4 billion.
Commenting on the results, Benjamin Smith, Group chief executive, said: “We have again delivered a strong set of results during the Second Quarter of 2023. In spite of the inflationary context, we posted double-digit growth in our revenues and a record operating margin. The rollout of new award-winning products across our airlines continued unabated, which serves as a testament of the commitment of our employees, whom I would like to thank.”
“We were also busy throughout the quarter, actively preparing for the summer. I am very glad to see that the situation at airports is much better, including at KLM’s hub at Amsterdam Schiphol Airport. This season notably serves as a test run for 2024, when France will host the Olympic and Paralympic Games, of which Air France is an official partner. Lastly, we have also continued delivering on our strategic roadmap, and secured ambitious partnerships in the field of sustainability, preparing for our medium to long-term future,” Smith added.
Air France, KLM and Transavia transported a total of 24.7 million passengers between April and June, down 11% compared to the same period four years ago. The airline said its capacity during the second quarter stood at 92% of 2019 levels, the same as in the first quarter.
“Revenue per available seat kilometre (ASK) grew by more than 12%, driven by the long-haul network and its performance across the network except Asia,” the airline said in a statement.
Despite high inflation, Air France-KLM said it expects bookings to be at the same or higher level compared with 2022 for the rest of the year. That includes the crucial summer vacation season underway.
Compared to the end of 2022 the group added three B787-10, fifteen B737-800, nine A220-300 and two Embraer 195-E2 and three B737-700, two A321, four A319 and two CRJ-1000 left the fleet, as a result the fleet increased by eighteen aircraft.