Air France-KLM revealed that revenue increased by 42% in the first quarter of 2023, to €6.33 billion versus the €6.3 expected by analysts.
- This increase was achieved thanks to the resumption of air traffic (+35%) and VMP (Value Miles Per Passenger)
- In the first quarter of 2023, the company sold 1.5 billion euros in airline tickets.
- ASM (Editor’s Note: Mileage Shown) is up 89% compared to 2019.
Air France-KLM Expect ASM up to 95% in the third quarterThanks in particular to the summer holidays and the price increase.
Transavia The low-cost subsidiary should reach 135% in 2023, mainly thanks to rapid supply growth and partial or total acquisitions of some lines In strong competition with Air France and KLM (Barcelona, Athens), some French domestic lines (Toulon and others) and open seasonal lines (Greek Islands, Balearic Islands, Italy, Senegal)
The net result remains negative at -337 million euros, compared to -552 million in the first quarter of 2022 in line with European competitors such as LufthansaAnd British Airways or Iberia.
The group suffered from the air traffic controllers’ strike in France and demonstrations that prompted travelers to delay or cancel their flights to France (foreign media didn’t help…)
For the future, the group is optimistic thanks to encouraging sales forecasts for the summer and the drop in the price of kerosene.
However, there are still many challenges facing the national carrier such as hiring new pilots, modernizing its fleet, capturing the business market in a timid recovery and competing against low cost within Europe. EasyJet, Ryanair, Wizz Air and long range Gull Airways Atlantic JetBlue Airways.
Despite the deleveraging (PGE was paid off in full a few weeks ago), the still-short-term market is avoiding the stock (AF.PA) with a decline of 3.71% to close Friday at €1,458
