HomeAir LineAir France earns barely a third of IAG

Air France earns barely a third of IAG

Despite all the airlines of the Air France KLM group billing in 2023 about 30 billion euros, a little more than the 29 thousand of the IAG group (British, Iberia and others), Air France KLM earned 934 million, its best result in history, but far from IAG’s 3,600 profits. Logically, the stock market reacted with a sharp drop to such results.

There are two completely surprising facts in Air France and KLM that half explain this brutal difference with the Anglo-Spanish group: on the one hand, the last quarter of the year, when it recorded net losses of 256 million euros (not that without these losses things would have been brilliant, but this made the results even worse) and secondly, in the best year for aviation, KLM made money, but less than in 2022, which is unusual. Overall, KLM continues to be the main contributor to profits, but it fell from 706 million in 2022 to 650 million in 2023.

It is still a recurring fact that the small airline is the one that continues to pull behind Air France, which does not manage to consolidate its results like its rivals Lufthansa or British Airways, which are its references.

From there, the explanations: what if Gaza, what if Russia, what if costs, as if their rivals were not in the same conditions, operating in the same markets, suffering the same circumstances.

The company’s managers, as happens in cases in which the key data, profits, are not satisfactory, get involved with the fleet expansion, with the fact that they have broken the passenger record, etc. By the way, the 93 million travelers are still far from the 104 million in 2019. The reason is that the Far East is still not recovering, which also affected Lufthansa and British Airways (not Iberia, which does not fly there).

Source: Preferente

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