Q3 2024 Air France KLM SA Earnings Call Transcript
Key Points
- Air France-KLM (AFLYY) reported a stable operating result of EUR1.2 billion for the quarter, maintaining performance despite the EUR160 million impact from the Olympic Games.
- Group revenue increased by 4%, aligning with capacity development and showing resilience in unit revenue with a 1.4% increase when excluding Olympic effects.
- The company successfully launched a codeshare agreement with Scandinavian Airline System (SAS), expanding its network and enhancing connectivity.
- Fleet renewal efforts are progressing, with next-generation aircraft now comprising 24% of the fleet, supporting sustainability goals.
- Air France demonstrated operational excellence during the Paris 2024 Olympic and Paralympic Games, achieving high standards and impressive punctuality.
- KLM faced operational difficulties and rising costs, impacting overall performance and leading to the launch of a 'back on track' program.
- The shortage of pilots and ongoing maintenance issues limited KLM's capacity growth, affecting financial and operational performance.
- The proposed French aviation tax could negatively impact Air France-KLM (AFLYY)'s operating results by EUR90 million to EUR170 million in 2025.
- KLM's unit cost increased by 8.4%, driven by operational challenges and inflationary pressures in the Netherlands.
- The company experienced manufacturing delays in fleet modernization, affecting the timely contribution of new aircraft to operational efficiency.
Good morning, and welcome to the Air France-KLM third-quarter 2024 results presentation. Today's conference is being recorded. At this time, I would like to turn the conference over to Ben Smith, CEO; and Steven Zaat, CFO. Please go ahead, sir.
Okay. Thank you, operator, and good morning to all of you, and thank you for joining us today for the presentation. Today, as the operator said, I'm joined by Steven Zaat, our CFO. I'll begin by sharing some of this quarter's key highlights. Following that, Steven will present our financial performance in detail as well as our outlook for the coming quarters.
Lastly, I'll conclude the presentation with some closing remarks and open the Q&A session. So moving to slide 3. First, let's start by looking at our key financial indicators this quarter. So during this quarter, our operating result reached EUR1.2 billion, overall remaining stable compared to last year once adjusted for the EUR160 million Olympic
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