Air France-KLM achieved its most successful quarter ever last summer, driven by substantial demand for airline tickets and increased seat occupancy. This remarkable performance resulted in an operating profit of 1.3 billion euros.
Compared to the previous year, the third-quarter profit soared by nearly a third, a period when the airlines were still grappling with the ramifications of the COVID-19 pandemic. The profit attained during the July to September interval exceeded the previous record set six years ago.
The robust demand for airline tickets allowed Air France-KLM to command higher ticket prices, enabling the merged company to offset increased expenses for fuel and salaries.
Notably, budget carrier Transavia experienced substantial growth, despite challenges posed by aircraft shortages. While some flights had to be canceled during the summer holidays, the overall capacity was 14 percent higher than the previous year and well above pre-pandemic levels. Transavia successfully transported 2.9 million passengers.
The entire Air France-KLM group reached 94 percent of its 2019 performance level, and it is anticipated that the impact of the pandemic will be entirely overcome in the coming year.
CEO Ben Smith characterizes this achievement as a “solid quarter, bolstered by strong demand during the summer season.” The net profit, which accounts for costs such as taxes and debts, doubled to 900 million euros.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email maurice.eisma@economicinform.com
