Air France-KLM reported a 33 percent decline in cargo revenue at €558 million for the third quarter of 2023 on continued normalisation of activity leading to lower unit revenue.
While traffic was flat at 1.6 billion, capacity increased three percent to 3.6 billion. Cargo carried was down two percent to 218,000 tonnes and traffic cargo revenue dropped 39 percent to €439 million. Unit revenue declined 41 percent to €12.02 cents.
For the first nine months of 2023, total cargo revenue declined 31 percent to €1.8 billion, and traffic cargo revenue dropped 35 percent to €1.5 billion. Unit revenue declined 39 percent to €14.31 cents. Cargo carried was down eight percent at 640,000 tonnes.
Air France-KLM will be among the launch customers of the Airbus A350 full freighter version of the aircraft, having ordered eight aircraft to renew and expand its cargo fleet.
The group operated six cargo aircraft and 536 aircraft in total at the end of September 30, 2023. The group reported a revenue of €8.7 billion for the third quarter, up seven percent compared to last year. Group capacity at 94 percent compared to 2019 with load factor at 90 percent.
Operating profit came in at €1.3 billion with an operating margin at 15.5 percent. Net income was €0.9 billion, up €0.5 billion compared to last year.
“Air France-KLM delivered a solid quarter, marked by remarkable results,” says Benjamin Smith, Group CEO, Air France-KLM. “This performance was driven by strong summer demand. I would like to thank all our teams for their unfailing commitment during the season. Throughout the quarter, we also made significant progress on our sustainable strategic roadmap. Our landmark order for 50 Airbus A350 aircraft will significantly accelerate the renewal of our long-haul fleet with more fuel-efficient, cost-effective, and quieter aircraft.
This new order represents a multi-billion investment to our sustainability roadmap, coming on top of previous orders for new generation widebody and narrowbody aircraft, and is complementary to our sustainable aviation fuel commitments. It confirms our ambition to reach 64 percent of next-generation aircraft by 2028, and is another major step towards our target of reducing our CO2 emissions per passenger kilometre by 30 percent by 2030.”
Air France-KLM Group will take up to a maximum 19.9 percent non-controlling stake in the share capital of the reorganized SAS AB, subject to approvals and conditions. The Group also signed a definitive agreement for quasi-equity financing for €1.3 billion with a potential to go up to €1.5 billion.