by Joanna Plucinska and Diana Mandia
LONDON/GDANSK (Reuters) – Air France-KLM reported an unexpected operating loss in the fourth quarter on Thursday, weighed down by rising costs and disruption caused by the conflict in the Middle East.
On the Paris Stock Exchange, Air France KLM shares fell 7.70% to 10.53 at 08:44 GMT, its biggest drop since last October.
European airlines expect strong demand in 2024, but constraints on supply chains have led to rising costs and delays in maintenance operations.
The group thus posted a record turnover in 2023 at 30 billion euros, up 14% year-on-year in line with expectations, but it believes that its operations are not yet optimal due to disruptions linked to the chains. supply.
Fourth quarter operating profit decreased by 190 million euros compared to the previous year, with a loss of 56 million euros, affected by the geopolitical situation in Africa and the Middle East.
Analysts had expected a profit of 88 million euros, according to a consensus compiled by the company.
Despite this, Air France-KLM managed to reduce its net debt by 1.3 billion euros in 2023, bringing it to 5 billion euros.
“We are satisfied to have been able to further strengthen our balance sheet and to have restored the group’s equity,” Air France-KLM CEO Benjamin Smith said in a statement.
JP Morgan analysts judged these results to be mixed due in particular to the operating loss and non-fuel costs, but welcomed the “decent” operating margin, which increased by 1.2 points on an annual basis, reaching 5 .7%.
( Camille Raynaud and Kate Entringer, edited by Tangi Salaün)
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