Air France-KLM: Quarterly outcomes under expectations, weighed down by the Olympics | EUROtoday

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The Olympic Games beginning July 26 in Paris won’t assist Air France KLM's accounts. On the opposite, vacationers and Parisians will keep away from the French capital throughout the Summer Olympics, which CEO Ben Smith outlined as “a negative effect” on Air France particularly, calculated at 40 million euros greater than estimated.

The group reported a second-quarter end result under forecasts at 513 million euros (-30%) with a lower of 220 million in comparison with final 12 months towards the forecast of 547 million euros because of the improve in prices and gasoline costs. “The second quarter of 2024 confirmed an increasingly difficult context for aviation, with rising fuel prices and continued pressure on costs,” Smith underlined in a notice, including that it has already taken measures similar to a hiring freeze and value cuts.

Air France-KLM has lower its full-year capability forecast as a decline in vacationers avoiding Paris throughout the Summer Olympics will value it €200 million much less in income, prompting the airline to scale back capability for the 12 months by 4% from an estimated 5%.

Net revenue for the quarter stood at 165 million from 612 million final 12 months, whereas the web end result for the primary half was adverse for 314 million. Revenue grew by 4.3% to 7.9 billion within the second quarter and by 4.7% to 14.6 billion within the first half.

French residents postponed their holidays till after the Olympics, whereas worldwide passengers stayed away from the capital to keep away from the chaos. Travel was usually much less in June and early July due to the European elections after which the French legislative vote, the corporate added.