Air France-KLM (AIRF.PA) reported better-than-expected first-quarter revenue and cash flow on Friday due to a worldwide air traffic rebound and high summer ticket sales.
The carrier’s revenue rose 42% to 6.33 billion euros ($6.97 billion), barely over the average 6.30 billion euros projected by analysts polled by the firm.
Despite high inflation and economic uncertainty, airlines and airports benefit from strong traffic recovery and rising travel demand.
Air France-KLM said the cost-of-living problem did not affect ticket sales, citing more than 1.5 billion euros in first-quarter sales and solid network demand.
The airline reduced its capacity expectation for 2023 to 95% from 95% to 100%.
The firm claimed decreased capacity forecasts were due to staff constraints, especially on the pilot side, not demand.
Last year, strikes and labor shortages led European airlines to postpone thousands of flights to avoid huge airport waits.
Air France-KLM claimed French air-control strikes cost millions of euros, less than past strikes.
Last month, French airport operator ADP (ADP.PA) reported losing 470,000 passengers between January and March due to strikes against President Emmanuel Macron’s pension reform.
Air France-KLM’s low-cost arm Transavia’s first-quarter operational performance was affected by air traffic control strikes in France, grounded aircraft in the Netherlands, and rising fuel prices, the firm said.
At the group level, the quarterly operating deficit was reduced to 304 million euros but was greater than the average loss of 282 million euros expected by analysts surveyed by the business.
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