The Franco-Dutch aviation giant's turnover is increasing roughly as expected, but profits are decreasing – and the forecast for this year's capacity increase is being lowered.
Turnover amounted to 7,544 million euros, compared to Bloomberg's analyst consensus of 7,480.
The number of passengers amounted to 28.5 million, which was an increase of 2.3 percent.
Operating profit was EUR 1,065 million. The operating margin was 14.1 percent.
EBITDA fell 4.4 percent to EUR 1,771 million, with an EBITDA margin of 23.5 percent.
Profit after tax was EUR 786 million.
Air France-KLM points to global uncertainty given the current geopolitical environment and the rising trend of fuel cells. This means that the forecast for capacity growth this year is being lowered to 2.0-2.5 percent. The previous forecast was 2.5-3.5 percent.
The fuel bill is expected to increase by 500 million euros this year compared to the previous year, and in 2019 an increase of another 900 million euros is expected compared to 2018.
Source: finwire
