Capitalizing on their customers’ regained travel appetite, Air France-KLM, one of Europe’s largest airline groups, posted an operating profit of 663 million euros in the second quarter. In April-June, total revenue went up nearly 1,8 billion euros to 7,7 billion euros. In 2022, the Franco-Dutch group still signed up for more than 11 billion euros in cumulative losses.

So despite higher ticket prices and inflation, which also saw the company’s costs rise, Air France-KLM presented excellent figures. Still, those figures are not yet at pre-Covid levels. Seat capacity, for example, was 8% lower than in 2019, before the pandemic. Air France, KLM, and low-cost subsidiary Transavia carried 24,7 million passengers from April to June, 11% fewer than in the corresponding period four years ago.

No weakening in bookings

The half-year net profit group share was 260 million euros, as the company suffered a loss of 344 million euros in the first quarter, traditionally the lowest of the year. According to Air France, there was good demand for long-haul flights, but also good demand in the luxury travel segment, even though the business travel segment was limping along behind.

The group also does not report any weakening in bookings, although there are growing concerns about longer-term demand due to inflation, among others. In general, the Air France group has shown itself to be more efficient than KLM.

Still €5,7 billion dept

Air France-KLM, which owed its salvation only to the intervention of the French and Dutch states, continued its deleveraging. Net debt has, in fact, shrunk by 1,4 billion euros since the end of December 2022 to 4,9 billion euros. The group is now less indebted than in June 2019, when they had a dept of 5,7 billion euros.

The company also announced that it had entered “exclusive negotiations” with the Apollo Global Management fund to inject 1,5 billion euros into a new subsidiary backed by the Flying Blue loyalty program. At the same time, it is still interested in the Portuguese TAP.