Air France-KLM reports “progressive recovery” in unit revenues, Norwegian yields fall


Air France-KLM’s shares eased 1.1% (as the broader CAC 40 index dropped 1.4%) yesterday, as it revealed a 0.2 ppt decrease in Nov-2009 load factor. Air France-KLM reported unit revenues last month - as in October - are “progressively recovering”, “relative to previous months”, both in premium and economy class.

November saw a 3.2% decline in traffic, in line with the reduction in capacity of 2.9% - a slight improvement on recent months.

Air France-KLM group RPK growth and Ask growth: Nov-08 to Nov-09

Air France-KLM reported the following traffic highlights by region:

  • European network traffic fell 3.5% with capacity down by 3.1%. The load factor was almost stable at 65.4% (-0.3 points).
  • Americas network, the decline in traffic (-3.3%) was well below the reduction in capacity (-5.2%) leading to a 1.7 point increase in load factor to 82.8%.
  • The Asia network recorded a drop in traffic of 3.1% with capacity down 2.0%. The load factor declined by 0.9 points to 82.8%.
  • Africa and Middle East network traffic fell 3.0% with capacity down by 1.1%. The load factor gave up 1.5 points to 75.3%.
  • The Caribbean and Indian Ocean network recorded a 2.8% drop in traffic with stable capacity (+0.1%). As a result the load factor declined 2.5 points to 84.2%.

The group carried 5.4 million passengers, down 3.0% year-on-year, with the total affected by a pilot strike at Air France which led to declines in traffic and capacity of 0.8% and 0.7% respectively.

The carrier reported a 3.7 ppt improvement in cargo load factor to (72.4%) with a “strong improvement in unit revenue”, reflecting “more dynamic activity” last month.

Elsewhere, Norwegian Air Shuttle reported a big decline in yields (-20%) last month, sending its shares slumping 6%, while British Airways’ stock retreated 3.5% and easyJet fell 3.4%.

Europe selected airlines daily share price movements (% change): 08-Dec-09

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More