Air France-KLM says global context 'remains uncertain' amid fuel price growth, geopolitics

19 February, 2018

Air France-KLM issued (16-Feb-2018) its outlook for 2018:

  • The global context "remains uncertain" given the current geopolitical environment and fuel price trends;
  • Increase capacity 3%-4% in ASKs across the group. 6%-7% increase by Transavia/Transavia France;
  • Long haul forward bookings for coming three months: Ahead of2017 levels with a "strong" Mar-2018 due to the Easter shift;
  • Passenger network unit revenue: Positive in 1Q2018 at constant currency;
  • Pursue unit cost reduction between 1%-1.5% at constant currency. Will be achieved through further increases in productivity, higher fleet utilisation and efficiency, the lower cost base of the new airline Joon and "focus on operational performance";
  • 2018 fuel costs: Increase by EUR150 million. 2017 fuel costs: EUR4.7 billion;
  • Targeting positive free cash flow for 2018. [more - original PR]