PARIS: Air France-KLM Group posted €544million ($610.5 million) in net income for the 2016 third quarter, up 13.1% from €481 million in the year-ago period. Revenue for the quarter was €6.9 billion, down 5% from €7.3 billion in 3Q 2015.
The Group’s total operating costs were €6.2 billion, down 3.5% from €6.4 billion a year ago; the operating result for the quarter was €737 million, down 16.3% from €880 million in 3Q 2015. Air France-KLM said the operating result was “notably impacted by the seven day cabin crew strike in July and August 2016, which had a negative impact of an estimated €90 million.”
The Group saw passenger numbers for the quarter rise 2.5% year-over-year (YOY) to 26.6 million compared to 25.9 million in 3Q 2015. Capacity increased 1% YOY to 94.1 billion ASKs.
For the Group’s passenger network business (Air France, KLM and HOP!), total revenue for the quarter was €5.5 billion, down 7.2% from €5.9 billion in 3Q 2015. The operating result for the passenger network was €664 million, down 16.8%. Low-cost subsidiary Transavia posted third-quarter passenger revenue of €490 million, up 10.9% from €442 million in the year-ago period. The airline’s third-quarter operating result was €92 million, up 19.5% YOY.
The Group’s cargo business revenue for the quarter was down 16.6% to €487 million compared to €584 million in 3Q 2015. The division showed an operating loss for the quarter of €100 million, deepened from an €81 million loss in the year-ago quarter.
The Group said it “continued to restructure its cargo activity to address the weak global trade and structural air cargo industry overcapacity … full-freighter capacity was thus reduces by 22%, leading to a decrease in total cargo capacity of 3.1%.”
