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Air France-KLM's pre-tax loss in the first quarter was further aggravated as the French-Dutch air transport group joined its competitors in explaining higher fuel costs and too many seats flooding the market.
The pre-tax loss of the airline increased from € 257 million to € 450 million in the same quarter of the previous year. Group earnings before interest, taxes, depreciation and amortization, at constant exchange rates, came to 424 million euros, down 32%, well below consensus of 606 million euros by badysts.
The Paris-based group predicted that "the capacity of the long-haul travel industry to and from Europe" would increase this summer more slowly than last year, particularly in the Middle East. East, North America and Asia.
Revenues per available seat-kilometer, a standard industrial unit, decreased by 1.9%, with the company's fuel bill rising by 13% to € 1.2 billion, and Easter a period of traditionally profitable trip, having decreased in April.
Managing Director, Benjamin Smith, said the first quarter had been "difficult" for the entire European sector "as substantial capacity growth in the off-peak sector led to pressure on unit revenues. ".
He added that the summer outlook appeared "more favorable" and confirmed the company's full year forecast, which included a slight to slight reduction in unit costs.
The turnover increased by 2%, adjusted to a constant exchange rate, to 6 billion euros.
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