Air France-KLM exceeded expectations for its quarterly results due to the recovery in transatlantic travel in the fourth quarter and said it began to see an increase in bookings this quarter as Omicron restrictions began to ease in Europe.
The French-Dutch group earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 745 million euros ($ 845.65 million) for the year, surpassing a Refinitiv poll in which analysts had forecast the amount at 342.9 million and the guidance of the company itself to a “weak” positive sign.
It was the second consecutive quarter with profits from the outbreak of the pandemic. In total, the company recorded a loss of 3.29 billion euros. Revenue of 14.32 billion euros exceeded the average estimate in a poll by Refinitiv which amounted to 13.97 billion euros.
Steven Zaat, the company’s chief financial officer, said the airline had increased its long-haul capability in the fourth quarter despite a resurgence of coronavirus outbreaks due to the Omicron variant, which affects short- and medium-distance travel in Europe.
In October, the group had forecast for the fourth quarter total capacity 70% -75% and closed the period at 72% of 2019 levels.
For the first quarter of this year, the company forecasts a balance of EBITDA, with the quarter being affected by the Omicron variant and the slowdown in business travel, as companies continue to apply primarily a teleworking model.
As of last week, however, Zaat said bookings have begun to rise, including during the summer, as air travel becomes less restricted.
Source: Capital
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