Air France-KLM posts Q3 operating result below expectations

Air France-KLM reported a notable decline in its quarterly operating result, which dropped by €162 million to €1.18 billion, falling short of analysts' €1.24 billion expectation.

This decline was attributed in part to the impact of the Paris Olympic Games, which reduced revenue by €160 million due to decreased international travel to Paris and fewer trips from residents, who postponed vacations. Excluding this factor, the airline’s performance matched last year’s results.

Despite a 3.7% increase in revenue to €8.98 billion due to strong demand and capacity, costs rose due to maintenance, adverse weather, air traffic control disruptions, and Middle East tensions.

The group now anticipates a 3% increase in unit costs for 2024 and revised its annual capital expenditure to approximately €3 billion.