2023-07-28 07:04:00
Buoyed by improved operating performance, the Air France-KLM group is improving its profitability. Taking advantage of a dynamic market since the end of the health crisis, which has enabled it to increase its traffic and improve its occupancy rate, the French group is gaining in profitability. It posted a sharp increase in operating margin in this first half. And, surprise, it is largely to its Air France subsidiary that it owes it.
With nearly 19% more passengers than in the first half of 2022, Air France-KLM benefited from a catch-up effect, with the start of last year still being disrupted by the Omicron variant. Be that as it may, its planes still transported more than 44 million passengers and regained 92% of its 2019 traffic level. A performance due in part to the growth of Transavia, which is in a strong development phase. .
The occupancy rate also increased significantly by 7 points to stand at 87% over the half-year, and even 88% in the second quarter. This allows Air France-KLM to play on prices with a yield up 9% over the last few months.
This combination of volumes and prices resulted in a 25% surge in sales in the first half, to 14 billion euros, compared to the same period last year. Given the gradual fall in the price of kerosene, the main cost item, the group succeeded in limiting the increase in its operating expenses to 23%.
In fact, Ebitda (earnings before interest, taxes, depreciation and amortization) increased by 40% over the first six months of the year, to reach 1.6 billion euros. Operating profit was multiplied by almost 12, to stand at 426 million euros. This gives an operating margin of 3.1% over the semester compared to 0.3% last year. And above all, the phenomenon accelerated in the second half of the semester. This operating margin thus jumped to 9.6% for the second quarter alone, traditionally more profitable than the first.
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And whether at quarter or semester level, it was the Air France group (Air France and Transavia France) that was the main factor for improvement. Over the first six months of the year, French companies tipped in the green with an operating margin of 3.5%, up nearly 7 points. A performance mainly linked to the good performance of long-haul and the improvement in load factors. This was felt even more strongly from the spring with an operating margin of more than 10% in the second quarter. A performance certainly rare at Air France.
Conversely, the KLM group – which for many years was the most profitable part of the Air France-KLM group, despite a smaller size – is in decline, although still profitable. Its margin over the half-year is thus only 2.3% once morest nearly 6% last year at the same period. In the second quarter, the decline was limited to 1.2 points and its margin was still 8.3%. The Dutch part of the Air France-KLM group thus believes that it has stabilized its activities “despite the difficulties linked to the supply chain, a tense labor market and fleet problems at KLM Cityhopper and Transavia Netherlands”.
On the net result, the Air France-KLM group turned positive. After losing 228 million euros in the first half of 2022, he now earns 260 million euros this year.
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