Air France-KLM reported lower-than-expected results for the second quarter of 2024. The company attributed the shortfall to increased unit costs, higher fuel prices, and a negative impact from the 2024 Olympic Games held in Paris.
During the quarter, the airline group transported 25.7 million passengers, marking a 4.4% increase year over year. However, revenue only rose by 4.3% to €7.95 billion. Air France-KLM reported a decrease in international inbound traffic to Paris due to the Olympic Games, which impacted Air France’s revenue by an estimated €40 million.
Operating income dropped by 30% to €513 million, and net profit fell to €121 million from €604 million a year earlier.
“The second quarter of 2024 confirmed an increasingly challenging environment for aviation, with rising fuel prices and a continued pressure on costs,” CEO Ben Smith commented. “In this context, KLM and Transavia delivered a stable yet sluggish performance, while Air France was in addition impacted by exceptional events, including the negative effect of the Olympic Games in June.”
In response, Air France-KLM has adjusted its capacity growth target to 4% for 2024 and expects unit costs to rise by 2% for the year. The airline is implementing cost-saving measures, including a freeze on non-operational hiring and a reduction in marketing expenses.