Air France-KLM (AFRAF.PK) reported Friday that its first-quarter group net result was negative 269 million euros, wider than last year's restated loss of 143 million euros. The company noted that Air France strikes weighed on the economic performance of the Group.
Operating result was negative 118 million euros, compared to restated negative 33 million euros in the prior year. This decrease reflects the strikes at Air France with a negative impact of around 75 million euros and by the fuel price increase.
EBITDA declined 4.2 percent to 621 million euros from 648 million euros a year ago. Revenues for the quarter increased 1.8 percent to 5.81 billion euros from 5.71 billion euros last year. The number of passengers carried rose 5.2% to 22 million.
The passenger capacity measured in ASKs was up 2.8 percent and traffic measured in RPKs grew 4.9 percent, resulting in the Group load factor to increase by 1.4 points to 86.7%. At constant currency, the Group unit revenues rose 1.2 percent.
Looking ahead, Air Franc-KLM said it expects second-quarter 2018 unit revenue to be flat at constant currency compared to last year.
Further, the company said that some guidance elements have been adjusted to take into account the Air France strike impact of at least 300 million euros on the operating result, and the macroeconomic context.
The company now expects capacity increase at 2.5 percent to 3.5 percent for Passenger network, while unit cost change is expected between 0 percent and +1.0 percent at constant currency, fuel and pension charges, including strike related costs and associated capacity adjustment.
The company also projects a fuel bill increase of 350 million euros compared to 2017 and currency headwinds of around 100 million euros.
As a consequence, the company now expects full year 2018 operating result to be notably below 2017.