Saturday 22 July 2017

Air France posts losses of €143m for the first three months of 2017

Ellie Donnelly

Air France has posted an operating loss of €143m for the first three months of 2017, however the company recorded revenues of €5.7bn.

Overall the result means that the company has seen a like-for-like improvement of €28m on its year-on-year result.

The improved result was partially driven by continued improvement in pricing trends in the passenger network business, with premium class unit revenues up 4.9pc year-on-year.

Passenger numbers at the airline were up 5.2pc to 20.9 million on the same period in 2016, and with the ramp-up of Transavia back on track, it recorded capacity up 27pc in France and 28pc in the Netherlands.

The airline recorded a good unit cost performance resulting in savings of €89m compared with the first three months of 2016.

Read more: 14 convicted over 'ripped shirt attack' on Air France bosses

In Cargo, capacity was down 1.1pc, given the almost 15pc reduction in full-freighter capacity, however, load factor was up 1pc.

Meanwhile, the maintenance business saw a 6.7pc increase in third-party revenues, although the operating profit for this unit was broadly flat at €36m.

The airline said that is its targeting a growth for the passenger group of between 3pc and 3.5pc for 2017 in order to regain the offensive in long-haul and to improve its performance in medium-haul.

The group also said that it plans to act on all levels in pursuing the initiatives already underway in the area of cost reduction.

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