PARIS: Air France-KLM continues to focus on cost reduction due to high uncertainty over future revenue and fuel prices, the Franco-Dutch airline announced.
Revenues of Air France-KLM declined by 3.3% last year, from €25,68 billion (US$27,3 billion) in 2015 to €24,844 billion in 2016, it said.
The geopolitical, economic and airline industry capacity environment and uncertainty on fuel prices make it difficult for the Franco-Dutch airline to forecast future revenue.
Although the January traffic figures and forward bookings indicate a resilient start to 2017, global economic and political conditions remain volatile, according to Air France-KLM. To improve its competitiveness, Air France-KLM plans to continue with cost-cutting as part of a strategy launched in November last year.
The group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) went up from 2,4 billion euros in 2015 to €2,7 billion in 2016, while net results increased from €118 million in 2015 to €792 million in 2016.
This positive result was mainly driven by a low fuel price and the good cost performance, while negative effects were experienced from pressure on revenue and exchange rates.
Air France-KLM carried 93,4 million passengers in 2016, an increase of 4% over the previous year. The 2016 results were in line with targets, the airline stated.
“Within a contrasting environment, Air France-KLM delivered an improvement in its 2016 results, reflecting the initiatives and efforts of its employees and the loyalty of customers,” commented Jean-Marc Janaillac, CEO of Air France-KLM, in a press release.
