Air France-KLM Reports Third Quarter 2023 Net Profit of €931 Million
Air France-KLM has reported a third quarter net profit of €931 million on a 6.8 percent year-over-year increase in revenue to €8.7 billion.
On Friday (October 27, 2023), Air France-KLM reported their third quarter financial results for the period ending September 30, 2023. The Group reported a third quarter net profit of $931 million on a year-over-year increase in revenue of 6.8 percent to €8.7 billion. Air France-KLM Group’s revenue per available seat kilometer (RASK) increased 0.8 percent at constant currency versus Q3 2022 to 9.39 euro cents, while costs per available seat kilometer, at constant fuel and currency, (CASK) increased 3.6 percent 7.80 euro cents. Compared to the end of 2022, the Group’s total net debt declined by €1.3 billion at the close of the third quarter. At September 30, 2023, the Group had cash and cash equivalents totaling €6.5 billion.
In Friday’s announcement, Air France-KLM Group’s CEO, Mr. Benjamin Smith, said,
“Air France-KLM delivered a solid quarter, marked by remarkable results. This performance was driven by strong summer demand. I would like to thank all our teams for their unfailing commitment during the season. Throughout the quarter, we also made significant progress on our sustainable strategic roadmap. Our landmark order for 50 Airbus A350 aircraft will significantly accelerate the renewal of our long-haul fleet, with more fuel-efficient, cost effective and quieter aircraft. This new order represents a multi-billion investment to our sustainability roadmap, coming on top of previous orders for new generation widebody and narrowbody aircraft, and is complementary to our Sustainable Aviation Fuel commitments. It confirms our ambition to reach 64% of next generation aircraft by 2028 and is another major step towards our target of reducing our CO2 emissions per passenger kilometer by 30% by 2030.
“We have also continued our efforts to further restore our equity, while leveraging the value of the Group's assets, as illustrated by a non-dilutive financing agreement of our Flying Blue Loyalty program. Finally, we initiated a process to acquire up to 19.9% in SAS, with an option to increase our share after two years. By investing in SAS, we intend to enhance our offer and connectivity in the Nordics.”
During the third quarter, Air France-KLM welcomed 26.9 million guests, an increase on 7.6 percent compared to Q3 2022, on a 6.0 percent increase in capacity and a year-over-year improvement in load factor by 1.3 points.
Compared to the end of 2022, the Group added three Boeing 787-10 Dreamliners, two Airbus A350-900s, 16 737-800s, 12 A220-300s, four Embraer E195-E2s, and one Embraer E190. The company also retired three B737-700s, two A321s, one A320, five A319s, three A318s, and three CRJ-1000s, for a net fleet increase of 23 aircraft.
On September 25, 2023, Air France-KLM announced a landmark aircraft order for 50 Airbus A350-900s and A350-1000s, along with purchase rights for an additional 40 aircraft, with deliveries expected from 2026 through 2030. The A350s will replace previous generation aircraft including Airbus A330s and older Boeing 777s. The incremental A350 order is in addition to Air France-KLM’s existing order for 41 A350-900s for Air France, of which 22 have already been delivered. Air France will also be one of the launch customers for the Airbus A350F dedicated freighter, with eight of the type on order.
Source: Air France-KLM Group