Air France-KLM: 3Q2013 operating result improves, but 2014 targets start to slip

Air France-KLM reported an improved operating result for 3Q2013 and confirmed its aim to increase 2H2013 operating profit by the same year-on-year amount as in 1H2013. It has provided more details on the additional restructuring measures previously announced relating to headcount reduction and planned capacity in medium-haul and cargo.

However, while the group expects losses in medium-haul and cargo to reduce significantly in 2014, it does not expect to see the full impact of these measures until 2015.

As a result, it has pushed back its net debt reduction target by one year and focused its 2014 EBITDA target at the lower end of its previous range. Unfortunately, targets that start to slip have a habit of becoming more slippery.