Air France-KLM Looks to Cut Costs as First Quarter Loss Widens
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2024
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Source: Bloomberg
- Air France-KLM Cost-Cutting Measures:
- The airline will freeze hiring for support staff to reduce costs after reporting a wider first-quarter operating loss due to higher expenses, Middle East conflict, and lower cargo revenue.
- Operating loss increased to €489 million compared to €306 million in the previous year, with cash at hand decreasing by €600 million to €9.9 billion.
- Challenges faced include disruption costs, slower cargo business, rising costs, supply chain disruptions, strikes, and conflicts affecting flight paths.
- Rival airlines like Lufthansa are also initiating cost-cutting measures such as freezing projects and reviewing hiring in some areas.
- Despite challenges, Air France-KLM reaffirmed full-year capacity guidance, trimmed 2024 capital expenditure target to €3 billion, and remains optimistic about summer bookings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
