Air France-KLM reduces Q1 loss with increased revenue, cautious about future challenges

In the first quarter, Air France and KLM reported revenues of €6 billion ($6.8 billion), with earnings before interest, taxes, depreciation, and amortization (EBITDA) at €339 million ($385.5 million). However, they also logged a negative operating result with a loss of €193 million ($219.3 million). The group mentioned the improvement in operational results by €215 million ($244.3 million) due to factors such as lower fuel prices and higher revenues.

Air France-KLM noted that North Atlantic revenue increased by 11%, despite capacity remaining flat year-on-year. Nonetheless, it flagged challenges such as Transavia's operational loss of €205 million ($232.7 million) due to factors like geopolitical instability and poor weather conditions in Spain.

Smith acknowledged potential economic challenges, yet emphasized Air France-KLM's resilience due to its diversified offerings. "Air France-KLM believes it is uniquely positioned to adapt and perform," he remarked. The company expects capacity to rise by 4-5% year-on-year in 2025 while anticipating an increase in unit costs by low single digits.

The company has positioned itself well financially, ending the quarter with €9.3 billion ($10.5 billion) in cash and noting a positive recurring adjusted operating cash flow of €783 million ($889.5 million). With its significant cash reserves, Air France-KLM could pursue further investment opportunities in Europe.