Though Air France-KLM reported its “highest revenue in its history in 2023,” the company recorded a fourth-quarter loss, according to results released Thursday.
For the quarter, Air France-KLM reported a €256 million (US$282.6 million) loss on revenue of €7.4 billion, with capacity up 6 percent. Revenue was up 6.7 percent year over year on a constant-currency basis, and the loss compared with Q4 2022’s net income of €496 million. The operating result was affected by the geopolitical situation in Africa and in the Middle East and an increase in unit costs, according to the company.
The record revenue for 2023 exceeded €30 billion, representing a 15.1 percent increase year over year on a constant-currency basis. Full-year net income was €934 million, up from €728 million a year prior. 2023 capacity was up 12.3 percent versus 2022.
Fourth-quarter passenger revenue for Air France and KLM was €6.1 billion, a 4.6 percent increase year over year on a constant-currency basis. Full-year 2023 passenger revenue was nearly €24.6 billion, representing a 13.9 percent increase versus a year prior.
The company reported it carried more than 22.3 million passengers during the fourth quarter, an increase of 6.4 percent year over year. The full-year number of passengers was nearly 93.6 million, an increase of 12.3 percent compared with 2022.
Air France-KLM projects 2024 capacity will increase 5 percent over 2023 levels. The company also said it expects the first quarter will be affected by similar “operational disruptions” as it experienced in the fourth quarter.
