Air France-KLM forecasts pick up in margins for 2026-28, ET TravelWorld News, ET TravelWorld

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<p>Air France-KLM is a major player in international air transport. The group's global network offers flights to over 300 destinations, covered by Air France, KLM Royal Dutch Airlines, and Transavia, as per its website.</p>
Air France-KLM is a major player in international air transport. The group’s global network offers flights to over 300 destinations, covered by Air France, KLM Royal Dutch Airlines, and Transavia, as per its website.

Air France-KLM on December 14 forecast a pick up in operating margin for 2026-28 ahead of an investor day in Paris, predicting results would improve by 2 billion euros (USD 2.2 billion) over the next five years and sending its shares higher.

The company said its operating margin would reach 8% or more in 2026-2028, up from its 2024-26 target of 7-8%.

That would be driven by cost reductions and an improvement in cash flow, the airline said in a statement. It also confirmed its target for sustainable aviation fuel use by 2030.

Portugal's TAP expects slower but sound 2024 revenue growth, CEO says

The state-owned airline that Portugal plans to privatise soon saw a record profit of 203.5 million euros (USD 219.52 million) for the first nine months of this year, reversing a year-ago loss of 90.8 million euros. While its revenue in the period soared by almost 30% to 3.2 billion euros, surpassing pre-pandemic 2019 levels, Rodrigues said TAP “has to get used to moderate revenue growth of 3% to 4% per year” and not levels seen amid the post-pandemic recovery.

Its shares rose 5% when the market opened.

European airlines have reported strong results in recent quarters on the back of robust post-pandemic travel demand that has withstood economic uncertainty and geopolitical instability.

“We are now well positioned to accelerate further and capture the full potential of our Group’s assets to deliver sustained and more profitable growth,” said Chief Executive Ben Smith.

The airline added that it would continue to invest in fleet renewal while confirming its outlook for 2024-26, with expected expenditure of 3-3.5 billion euros per year in that period, and up to 3.8 billion in 2027-28.

  • Published On Dec 14, 2023 at 02:36 PM IST

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