Turnaround plan benefits Air France KLM

Air France KLM has seen a boost
Air France KLM has seen a boost

Air France KLM has reduced its EBITDA in its first quarter as it continues with its Transform 2015 plan.

The airline group has seen its EBITDA, earnings before taxes, interest and other fees, improve EUR66 million (US$91m, GBP54m) although it still posted a loss of GBP41m.

Operating costs were reduced by 3.4% with its fuel bill down 6.4% to GBP1.2bn.

Passenger traffic increased 2.1% for the group against a 1.3% boost in capacity and despite the move of Easter. Long—haul traffic was up 2.2%, with load factors at 85.2%.

Its net debt has increased since December and now sits at GBP4.5bn, with a slog in cargo traffic and complications around a new route to Caracas, Venezuela causing an extra burden.

A statement from the airline read: “Delivery on the Transform 2015 plan is fully on track. However, the general operating environment remains tough. Under these conditions, the group remains committed to its objective of an EBITDA in the region of GBP2.05bn in full year 2014, subject to the successful implementation of the measures aimed at compensating for the slower than expected recovery in cargo demand and the network adjustments linked to the situation on the Caracas route, and no reversal in other operating trends. The group will continue to reduce its net debt in line with its objective of GBP3.6bn in 2015.”

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