Air France-KLM reports robust bookings for 2023, forecasts higher margins

By Joanna Plucinska

LONDON (Reuters) – Air France KLM said on Friday 2023 bookings were almost back to 2019 levels as the airline forecast higher margins in the medium term amidst an ongoing travel recovery.

The airline group also reported its highest Q4 revenue at 7.1 billion euros, climbing almost 50% year-on-year.

“Although 2022 started quite difficult, where we still had COVID and the (Ukraine) war had started … and we had afterwards the difficulties at the airports and inflation. Im very happy that we can say now that 2022 Q4 ended better than where we ended in Q4 2019,” Chief Financial Officer Steven Zaat said on a media call.

The company said it was on track to fully pay back French state aid by April of 2023, reporting a net debt of 6.3 billion, down 1.9 billion euros from the previous year.

However, Zaat said staffing shortages at Amsterdams Schiphol Airport may not be resolved before end-June. The warning came as the carrier said disruption at Schiphol had cost its Dutch KLM business 170 million euro in lost revenue last year.

“It is improving so that it‘s very good to see. Of course we are still impacted by the fact that there’s labor shortages everywhere, but also at the airport … but we see that gradually operations are actually back on track,” Zaat said.

(Reporting by Joanna Plucinska; Editing by Sandra Maler)