Air France-KLM’s revenues in 2024 were also supported by increased demand for cargo goods shipments, boosted by e-commerce and shipping disruptions.
Air France-KLM’s revenue grew 4.8% in 2024 to €31.5bn, the company announced on Thursday.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2024 came in at €4.2bn, an annual increase of €36m.
In the fourth quarter, revenues were up 6.4% at €7.9bn.
This was mainly because of strong passenger demand, especially for premium cabins, as well as in the North Atlantic market.
Air France-KLM’s shares surged over 16% on Thursday morning.
On a less positive note, the firm’s income from operating activities came in at €1.6bn in 2024, marking a fall of €111m.
Net income was €489m in 2024, which was a drop of €501m.
The airline’s cargo division also experienced a robust peak season in 2024, compared to the previous year, driven partly by growing Asian demand.
Rising e-commerce orders, as well as ongoing ocean shipping disruptions, mainly caused by unrest in the Red Sea, contributed to better cargo performance.
Air France-KLM’s fuel costs in the fourth quarter were also lower than expected.
“In the fourth quarter of 2024, Air France-KLM delivered a particularly strong finish, concluding a year shaped by both operational and external challenges. Throughout these headwinds, we remained steadfast in our commitment to offer a premium, customer-centric service and to advance our sustainability roadmap through continued fleet renewal and ambitious SAF initiatives,” Benjamin Smith, the CEO of Air France-KLM, said in a statement.
“We also broadened our global reach by introducing new routes and reinforcing strategic partnerships, including our recent acquisition of a minority stake in SAS, which already shows promising results. In 2025, we will continue to deliver on our strategic roadmap and keep transformation as our number one priority. In this context, we remain confident in achieving our medium-term ambition, with a disciplined approach to capital allocation and cost efficiency,” he continued.
KLM reports disappointing results for 2024
KLM announced lacklustre earnings for 2024, with its operating result falling by €234m to €416m.
Although revenue advanced 5.4%, gains were still capped somewhat, primarily because of escalating equipment, airport fees and personnel costs.
The airline revealed that it plans to boost its EBIT by €450m in “the near term”, while also aiming for an 8% profit margin between 2026 and 2028.
This is expected to go a long way in supporting the airline’s future strategic and fleet renewal plans.
“Our results for 2024 show two different sides. On one hand, we are still not operating at 100% of our flight capacity and costs continue to rise sharply. As a result, we run the risk of not earning enough to keep investing in our future, although I’m confident that our plans will help us to improve our operations and finances for the long term,” Marjan Rintel, CEO of KLM, said.
“At the same time, 2024 also brought some good news and progress. We saw growing customer demand for flight tickets, achieved operational improvements, welcomed the first Airbus A321neo, and successfully completed the conversion of our Premium Comfort Class – our highest-rated class,” she continued.
