Air France-KLM returns to profit, aims to increase capacity to 90% 2019 levels

Air France-KLM reported a $394 million operating profit for the second quarter of 2022, an increase of $1,17 million (€ 1,145 million) compared to the same period in 2021.

The Franco-Dutch airline holding company said in its latest financial update, released on July 29, 2022, it has redeemed $1.63 billion (€1.6 billion) of the French State perpetual bonds. The company added that it had also fully repaid the state-backed rapid credit facility (RCF) and the direct Dutch State loan amounting to around $962 million (€942 million).

“The strong recovery we see this summer is putting the entire aviation industry to the test. While Air France-KLM had prepared for close to pre-pandemic demand levels, our airlines are not immune to the major operational challenges taking place around the world,” Air France-KLM’s chief executive said.

Noticing a strong recovery in passenger demand for air travel in the post-pandemic environment, Air France-KLM is now aiming to gradually increase capacity from 80% to 85% in Q3 2022. The airline also hopes to operate at 90% of 2019 levels in Q4.

As of June 30, 2022, the group’s liquidity stands at $12.6 billion (€11.9 billion).