Air France-KLM reports a "levelling-off" of yields
Air France-KLM reported a 4.8% increase in passenger traffic (RPKs) in Jan-2011 and a 1.1 ppts gain in load factor, although the figures were enhanced by favourable comparisons to Jan-2010, which was disrupted by snowfall and a two-day strike by air traffic controllers in France.
- Air France-KLM reported a 4.8% increase in passenger traffic in January 2011, with a 1.1 ppts gain in load factor.
- The figures were boosted by favorable comparisons to January 2010, which was disrupted by snowfall and a two-day strike by air traffic controllers in France.
- Unit revenues were higher than last year, but the airline noted a leveling-off in January 2011.
- The geopolitical situation in several countries, including Ivory Coast, Sahelian region, Tunisia, and Egypt, is weighing on revenues.
- Air France-KLM's Asia network remained dynamic, with traffic up 7.4% and capacity up 6.4%.
- Cargo traffic and unit revenue also showed positive growth compared to January 2010.
Crucially, the carrier noted that while unit revenues were "higher than last year", the airline saw "a levelling-off" in Jan-2011, adding that the geopolitical situation in a number of countries (Ivory Coast, Sahelian region, Tunisia and Egypt) is "weighing on revenues".
Air France-KLM noted its Asia network "remained dynamic", with traffic up 7.4% and capacity up 6.4%. Systemwide cargo traffic rose in line with capacity (by 3.4% and 3.3%, respectively), while cargo unit revenue was up compared with Jan-2010, "which already benefited from a more favourable operating environment".
The airline's shares were flat yesterday. Rival Lufthansa gained 1.4% following Monday's solid rise.
Selected European airlines daily share price movements (% change): 08-Feb-2011