Air France-KLM returns to profit, aims to increase capacity to 90% 2019 levels

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Air France-KLM reported a $394 million operating profit for the second quarter of 2022, an increase of $1,17 million (€ 1,145 million) compared to the same period in 2021.  

The Franco-Dutch airline holding company said in its latest financial update, released on July 29, 2022, it has redeemed $1.63 billion (€1.6 billion) of the French State perpetual bonds. The company added that it had also fully repaid the state-backed rapid credit facility (RCF) and the direct Dutch State loan amounting to around $962 million (€942 million).  

“The strong recovery we see this summer is putting the entire aviation industry to the test. While Air France-KLM had prepared for close to pre-pandemic demand levels, our airlines are not immune to the major operational challenges taking place around the world,” Air France-KLM’s chief executive said. 

Noticing a strong recovery in passenger demand for air travel in the post-pandemic environment, Air France-KLM is now aiming to gradually increase capacity from 80% to 85% in Q3 2022. The airline also hopes to operate at 90% of 2019 levels in Q4.  

As of June 30, 2022, the group’s liquidity stands at $12.6 billion (€11.9 billion). 

The company also continued its fleet renewal plans during the quarter in line with its sustainability goals.  

Air France-KLM added three Airbus 350-900s and two Airbus A220-300 jets, and removed an older Boeing 777-200, an Airbus 320, three Airbus 319s, two Embraer 170s, three Embraer 195 E2s, and five Canadair Jet 1000s from service. 

“We aim to increase our resilience to the changes of our environment while continuing to accelerate our efforts to make our Group and aviation as a whole more sustainable,” the CEO said.