Despite less international travel into Paris and less travel from France because of the Summer Olympic Games, Air France-KLM reported increased revenue and passengers during the third quarter, the company announced Thursday.
Third-quarter passenger network revenue was up 1.8 percent year over year to more than €7 billion (US$7.8 billion). Total network revenue increased 2 percent to nearly €7.4 billion. Capacity increased 3.4 percent, while the number of passengers carried increased 3.3 percent to about 20.5 million. Operating income was €899 million, down €192 million from a year prior.
“The third quarter revealed mixed trends for the Air France-KLM Group,” CEO Benjamin Smith said in a statement. “Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements.”
Air France-KLM estimated the Olympics impact to cost the group about €160 million.
For the North Atlantic segment, third-quarter capacity increased 4 percent year over year, while load factor remained relatively stable, dropping 0.5 percentage points to 90 percent.
For the Air France brand, third-quarter revenue increased 3.1 percent to more than €5.5 billion. Operating income was €732 million, a €74 million decrease from Q3 2023. For KLM, revenue was up 3.6 percent to more than €3.5 billion, while operating income declined €143 million from a year prior to €396 million.
A day prior to releasing its third-quarter results, Air France-KLM confirmed to BTN stablemate BTN Europe that beginning Jan. 1, 2025, it would begin a global distribution surcharge on EDIFACT bookings. For the first six months, the charge will be €3 per segment. The fee, which repeatedly has been delayed, was expected to be €24 per segment.
