Air France-KLM has announced doubling its year-on-year profit in the second quarter to 604 million euros, attributed to high demand in air travel despite rising inflation which has increased costs.
The Airline saw its sales rise by 13.7 per cent compared with the same period in 2022 to 7.6 billion euros, boosted by increased passengers and higher ticket prices.
According to a statement by the Airline, that represents a “record” operational margin of 9.6 per cent.
The results were reached despite seat capacity being down eight per cent compared with 2019, before the pandemic.
Between April and June, Air France, KLM, and Transavia carried 24.7 million passengers, an 11 per cent decrease from the same time four years prior.
Did you read this?
Since the epidemic, ticket prices have climbed dramatically due to rising fuel prices, increased demand, and capacity issues.
Air France-KLM stated that it anticipates bookings for the current quarter, which includes the key summer holiday season, to be at the same or greater level compared with 2022, despite rising inflation straining consumers' wallets.
Costs for the group have increased by 5.6% in the second quarter of the year, up from just 0.7% in the first quarter, although inflation impacts these costs.
Due to these expenses, operational profits fell by 337 million euros, cancelling the benefits of decreasing fuel prices.
Nevertheless, operational profits increased by 733 million euros compared to a year earlier.
Air France-KLM saw a profit last year after suffering losses of 11 billion euros during the epidemic and needing the assistance of the governments of France and the Netherlands.
Since the end of December, the company's debt has decreased by 1.4 billion euros, bringing it to 4.9 billion.
