Air France-KLM suffers a slump in Paris, paying its quarterly accounts below expectations.

(Il Sole 24 Ore Radiocor) - Air France-KLM plunged on the Paris Stock Exchange after publishing third-quarter results that fell short of analysts' expectations. Shares of the Franco-Dutch airline group posted third-quarter revenues of €9.21 billion (+2.6%) versus the €9.39 billion expected, operating profit of €1.20 billion (+€23 million compared to last year) versus the consensus estimate of €1.28 billion, and net profit of €768 million (down €56 million). At constant exchange rates, revenues grew 4.8% and operating profit increased by €35 million. The occupancy rate was 88.8% (-0.5 points), and revenue per available seat decreased 2.4% to €9.10.

From July to September, passenger traffic for the group—Air France, KLM, and Transavia—increased 4.7% year-over-year to 29.2 million passengers. Air France-KLM said it benefited from lower fuel prices, but also saw higher labor costs and airport taxes, as well as one-off costs related to the launch of its new premium cabins. "During the third quarter, Air France-KLM once again demonstrated its resilience in a challenging environment," commented group CEO Benjamin Smith. Against this backdrop, Air France-KLM confirmed its 2025 targets. The group still expects a 4% to 5% increase in capacity this year, in terms of seat kilometers offered, a low-single-digit increase in unit costs excluding fuel, and capital expenditure of between €3.2 billion and €3.4 billion.