AIR France-KLM today reported a surge in profit in the third quarter, boosted by strong summer demand that led to full planes and higher fares.

The Dutch-French group posted a profit of €931 million (RM4.7 billion), double that in the same period last year, as the group benefited from robust demand for air travel.

Turnover increased nearly 7% to €8.7 billion.

Between July and September this year, the group transported 26.9 million people – an increase of 7.6% compared to the same period the previous year.

The group’s CEO, Benjamin Smith, said it was a “solid quarter, marked by remarkable results”.

Ticket prices have soared since the pandemic, driven by rising fuel costs, increased demand and capacity constraints.

Air France-KLM managed to turn a profit last year after having lost €11 billion during the Covid-19 pandemic, requiring the governments of France and the Netherlands to intervene.

Last month, the group announced that it was placing an order for 505 long-haul Airbus A350s as part of its efforts to introduce more fuel-efficient planes.

The group has also joined an investment consortium to buy nearly 20% of Scandinavian Airlines, which filed for bankruptcy protection last year as it reeled from Covid-19 travel bans and a costly pilots strike.

Air France-KLM has also expressed interest in buying a stake in Portugal’s flag carrier, TAP, which is being privatised after a rescue by the government. – AFP, October 27, 2023.