Air France-KLM has reported financial results for 2018. Total revenues grew 2.5% to €26,512m. Its EBITDA was €4,217m, down 11.5% from €1,555m in the previous year. This was negatively impacted by fuel price increases and pilot strikes in the first half of 2018.
Cargo revenues grew 4.1% (or 6.4% on a constant currency basis) to €2,288m. Tonnage was down by 0.1%, but unit revenue per available tonne-kilometre (ATK), grew 2.9% (5.2% at constant currencies). The company commented that the trading environment was better than expected and that its Asian and American networks made strong contributions o its results.
Anne-Marie Couderc, Chairperson of the Board of Directors of Air France-KLM, commented, “The strong performance of our front-line teams and continued cost control helped partly offset the impact of strikes at Air France in the first half of the year, as well as significant fuel headwinds. In the past five months, we have made significant progress in reinforcing the trust and dialogue with our employees in both Air France and KLM, allowing for a shared strategic approach to accelerate the Group’s profitable development. I am particularly pleased that yesterday we reached the last step in this phase, the majority of Air France pilots having approved the proposed categorical agreement. We have also strengthened our offer by simplifying our brand portfolio and initiating an improvement in our network and fleet management. These first achievements pave the way for our ambition to regain a leading position in Europe and worldwide.”
For 2019, the company anticipates further fuel price rises, with its bill increasing by €650m to €5.6bn. To combat this, it aims to reduce unit costs of between 0% and 1% over the year.
Source: Air France-KLM
