Air France-KLM, the umbrella group for carriers Air France, KLM and Transavia, has posted record revenues for 2023 as it announces its annual financial results.
Details about Air France-KLM’s financial and operating performance were published on February 29, 2024, which although positive included disappointing results in Q4 2023.
The aviation powerhouse recorded the highest revenue in its history in 2023, amounting to €30 billion ($32 billion) up 14% compared to last year, while its operating profit rose to €1.7 billion ($1.8 billion).
Air France-KLM also reported net income amounted to €934 million ($1 billion), up by 206 million ($223 million) since 2002.
The net debt ended at €5 billion ($5.4 billion) representing an improvement of €1.3 billion (1.4 billion) compared to 2022.
However, there were concerns over Air France-KLM’s performance in the final quarter of 2023.
“The operating result was €190 million ($206 million) below last year standing at -€56 million (-$60 million) and was impacted by the geopolitical situation in Africa and in the Middle East (€65m) and an increase of the unit cost, although partly compensated by a lower jet fuel price,” Air France-KLM said in its statement.
Numbers were also down in Q4 due to “operational disruption costs for €70 million ($75 million) and a one-time non-cash impact (IFRS2) related to the employee shareholding plan for €30m ($32 million)”.
“In 2023, we delivered on our commitment to strong operational and financial performance, while also maintaining our position as a benchmark airline Group for sustainability. Among our major achievements, we can be satisfied of our efforts to further strengthen our balance sheet and restore the Group’s equity,” Benjamin Smith, Group CEO, said.
In more positive news for the company, Air France-KLM welcomed 22.3 million passengers in Q4 2023, which is 6.4% above the previous year.
The group expects the capacity in Available Seat Kilometers for Air France-KLM Group, including Transavia, to increase by 5% in 2024 compared to 2023.
“Looking ahead to 2024, a key priority will be to continue reinforcing our performance, via the continued execution of our strategy. This year will mark Air France-KLM’s 20th anniversary, an occasion made all the more special by the Paris 2024 Olympic and Paralympic Games, of which Air France is a proud official sponsor. We look forward to welcoming the world to France – athletes, delegates, supporters and more – onboard our aircraft to celebrate the world’s largest event,” Smith added.