Despite harsh economic conditions and the terror attacks, Air France-KLM in the first quarter of 2016, posted another marked improvement in its financial indicators.
The group however alerted on the impact of ‘the continued pressure on unit revenue, an overcapacity situation on various markets, considerable geopolitical uncertainty, slow economic growth on several key markets (Brazil and oil routes).
The Group’s turnover stood at € 5.6 billion, compared with 5.58 billion euros in 2015, an increase of 0.4 percent.
The airlines’ operating income stood at – € 99 million euros, compared with – € 417 million in 2015, an increase of € 318 million.
The group noted that ‘despite a difficult context marked particularly by the Paris and Brussels bombings, its move upmarket of product and services, commercial efforts and the continuous adaptation of its network has enabled the Air France-KLM group to limit the decline in unit revenue and retain a substantial part of the fuel bill savings’.
“As observed in 2015, the Group expects a significant part of the expected fuel bill savings to be offset in the coming months by downward pressure on unit revenues and a negative currency impact”, it said.
Its net debt amounted to € 4.16 billion at 31 March 2016, compared with 4.31 billion euros at 31 December 2015, a decrease of €146 million.
“The Group is continuing to reduce its debt while maintaining a steady pace of investment (0,5 billion euros during this quarter)”.
Unit costs excluding fuel, decreased by 1.3 percent compared with 2015. They decreased during this quarter in line with the objectives set early in the year.
As part of the Perform 2020 strategic plan, the Group confirms its ambition to improve its competitiveness, and maintains its objective of reducing unit costs by 1 percent in 2016.
By: Sade Williams
