News Column

Air France-KLM June Traffic, Capacity Rise; But Cuts Ebitda Outlook

July 8, 2014

PARIS (Alliance News) - Franco-Dutch airline Air France-KLM reported a 2.9% improvement in traffic, with a 1.8% increase in capacity for the month of June 2014, but its lowered its earnings before interest, tax, depreciation and amortisation target for the year as a whole as it warned that overcapacity on some long-haul routes will hit yields.

Traffic in June, measured in terms of revenue pax-kilometers or RPK, grew 2.9% year-on-year to 20.44 billion, from 19.86 billion; with available seat-kilometers or ASK, a gauge for capacity, rising 1.8% to 23.72 billion, from 23.30 billion last year.

The monthly load factor rose 0.9 percentage points to 86.2%, from 85.3 a year before.

The group said it carried 7.19 million passengers in the recent month, which was 3.9% higher than 6.92 million passengers carried last year.

The company noted that the June traffic figures published today as well as bookings for July and August nevertheless reflected the over-capacity on certain long-haul routes, notably North America and Asia, with the attendant impact on yields. This comes on top of the persistently weak cargo demand and the challenging situation in Venezuela identified in the First Quarter.

So, the company said that it lowered its Ebitda target for full year 2014 to a range of 2.2 billion euros - 2.3 billion euros from the prior estimate of around 2.5 billion euros. The company said that strong capital disciple will enable it to remain on track in terms of debt reduction and it confirms its objective of 4.5 billion euros in net debt in 2015.

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Source: Alliance News

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