Third quarter revenue for the Air France-KLM group nearly doubled year-over-year, with demand rising as countries reopen over the summer, but executives said the recovery in business travel remained sluggish. .
The group reported total revenue of € 3.8 billion for the quarter, up 89.8 percent year-over-year. Capacity increased 63.7% year-over-year and about two-thirds of the group’s capacity in the third quarter of 2019.
Demand on the group’s short and medium-haul routes was “encouraging” during the quarter, driven largely by leisure travel, although the group’s performance in September returned to 2019 levels, indicating some shooting in business travel. Demand for outlets in the United States has led to a “sharp rise” in demand on North Atlantic routes and routes to Canada also performed “well” once border restrictions were eased.
With restrictions on travel to the United States from Europe easing this month, the group expects its capacity to be between 70 percent and 75 percent of 2019 levels for the fourth quarter.
Air France-KLM also announced on Friday that it will set a new carbon reduction target for 2035, halfway through its current net zero emissions target by 2050. The group has signed a letter of intent with targets based on the science initiative – an independent leading organization founded by the Carbon Disclosure Project, the United Nations Global Compact and the World Wildlife Fund – to validate those goals are in line with the Paris Agreement, which aims to limit global climate change to less than 2 degrees Celsius of heating.
The group plans to present its objectives to the initiative in the first half of 2022, “placing our emissions reduction trajectory within a scientifically indisputable and demanding framework,” said the CEO of the Air group in a statement. France-KLM, Benjamin Smith.
Air France-KLM posted a net loss of € 192 million for the third quarter and an improvement of € 1.5 billion from its loss in the third quarter of 2020.
Air France-KLM second quarter earnings