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Dow Jones Newswires: Air France-KLM swings to a profit on record revenue as air travel demand surges

Air France-KLM will continue to invest in new-generation aircraft after swinging to a profit and booking record revenue in the fourth quarter amid a surge in demand for air travel after years of restrictions and border closures.

The Franco-Dutch carrier group

on Friday posted a net profit of 496 million euros ($529.3 million) compared with a EUR126 million loss in the fourth quarter of 2021. For the year, the company reported a profit of EUR728 million compared with a EUR3.29 billion loss in 2021.

The group’s quarterly operating income, a closely watched metric by analysts and investors, slipped to EUR134 million from EUR179 million, generating a 1.9% margin. Quarterly revenue surged 47% to EUR7.13 billion.

Air France-KLM was expected to post a net loss of EUR57 million, operating income of EUR102 million and revenue of EUR6.89 billion for the fourth quarter, according to a company-provided consensus that gathered estimates from 18 analysts.

For the current quarter, the group is targeting 90% to 95% capacity in available seat kilometers. For the year as a whole, it expects 95% to 100% capacity, reaching 2019 levels from 2024.

Write to Mauro Orru at; @MauroOrru94

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