The Air France-KLM Group has reported a first quarter 2024 net loss of €480 million on a year-over-year increase in revenue of 5.1 percent to €6.7 billion. At March 31, 2024, the Group had €9.9 billion in cash on hand.
On Tuesday (April 30, 2024), Air France-KLM Group reported their first quarter financial results for the period ending March 31, 2024. The Group reported a first quarter net loss of €480 million on a year-over-year increase in revenue of 5.1 percent to €6.7 billion. Air France-KLM’s first quarter revenue per available seat kilometer (RASK) declined 1.8 percent versus Q1 2023 to 8.06 euro cents, while cost per available seat kilometer (CASK) at constant fuel and currency increased 4.0 percent to 8.65 euro cents. At March 31, 2024, Air France-KLM Group had €9.9 billion in cash on hand.
In Tuesday’s announcement, Air France-KLM Group’s CEO, Mr. Benjamin Smith, said,
“Despite a challenging start to the year with persistent geopolitical tensions, Air France-KLM recorded further revenue growth this quarter, capitalizing on a structurally robust travel demand. However, as anticipated, our operating income was impacted by disruption costs and a slower Cargo business. We nonetheless remain confident in our ability to achieve our 2024 unit cost outlook, and are focused on executing our strategic roadmap to deliver our mid-term commitments. Our sustainability roadmap is also well on track, with continued next generation aircraft deliveries and SAF sourcing initiatives. Finally, we are actively gearing up for a promising summer season with, in Paris, the eagerly-awaited Olympic and Paralympic Games. A unique opportunity for Air France to showcase its expertise and customer service excellence.”
For the first quarter 2024, Air France’s revenue increased 2.8 percent compared to the same period last year to €4.0 billion. The carrier's Q1 2024 operating result was -€249 million, reflecting impacts of supply chain issues, and IT system implementation for cargo. KLM’s revenue grew year-over-year by 8.5 percent to €2.7 billion, and the carrier reported an operating loss of negative €290 million. KLM’s first quarter results were impacted by approximately €100 million in one-time salary payments, as well as high customer compensation costs in January and February. At the end of March 2024, the Group’s fleet included 21 percent new generation aircraft, up from 17 percent at the end of March 2023. This total is expected to increase to 80 percent by 2030, as the company continues their fleet renewal program.
Air France-KLM's First Quarter 2024 Financial Results - Courtesy Air France-KLM Group
During March 2024, Air France-KLM repaid approximately €452 million of the outstanding €500 million in bonds convertible into new shares and/or exchangeable for existing shares due March 25, 2026. The Group’s first quarter 2024 MRO business revenue increased 32.1 percent compared Q1 2023 to €1.2 billion, while third party revenues increased 43.4 percent to €530 million. Flying Blue miles reported first quarter 2024 revenue of €196 million resulting in an operating profit of €47 million.
Source: Air France-KLM Group