Air France-KLM beats earnings forecasts as summer bookings take off

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Air France-KLM beats earnings forecasts as summer bookings take off via IrishTimesBiz

The conflict has destabilised global oil prices and caused airlines to suspend flights and plan longer routes to avoid Russian and Ukrainian airspace, but hedging fuel costs and fare hikes helped Air France-KLM soften the hit to its earnings.

It had predicted that earnings would land around break-even. It now expects its operating result - €350 million in the red in the first quarter - to break even in the second quarter and turn “significantly positive” in the third. The group, which is looking to repay support it received during the pandemic, said it was considering measures such as capital increase and quasi equity instruments to speed up its payments to the French state, its top shareholder.

Air France-KLM, which has announced sweeping pandemic job cuts and taken on government wage support, said staff costs in the first quarter were down 23 per cent compared to the same period in 2019.

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