By Mauro Orru
Air France-KLM reported net and operating losses well below analysts’ expectations for the fourth quarter after the Israel-Hamas war disrupted travel to the Middle East and company expenses continued to rise.
The Franco-Dutch carrier group on Thursday posted a net loss of 256 million euros ($277.5 million) for the three months to the end of December compared with profit of EUR496 million in the fourth quarter of 2022. The company also posted an operating loss of EUR56 million compared with operating profit of EUR134 million for the same period the prior year.
Revenue climbed 3.9% to EUR7.41 billion in the quarter, when Air France-KLM handled 22.3 million passengers, 6.4% more than in the previous year.
The group was expected to post a net loss of EUR82 million, operating profit of EUR88 million and revenue of EUR7.45 billion, according to a market consensus provided by the company based on estimates from 15 analysts.
Capacity stood at 93% of 2019 levels and the company said it expects a 5% increase this year. Net capital expenditure in 2024 should range from EUR3 billion to EUR3.2 billion.
Write to Mauro Orru at mauro.orru@wsj.com
