Air France-KLM Group Q3 cargo revenue flat
For the first nine months of 2024, cargo revenue declined nine percent to €1.7 billion.
Air France-KLM Group reported a flat cargo revenue of €561 million for the third quarter ended September 30, 2024 while tonnage increased 3.5 percent to 226,000 tonnes.
"While capacity (ATK) increased 1.5 percent to 3.7 billion, traffic (RTK) was up three percent at 1.7 billion," says an official release.
Load factor improved to 45.5 percent while unit revenue per ATK was higher by six percent at 12.74 cents.
"Today’s air freight market is dynamic and Asia in particular is performing well, driven by e-commerce and the Red sea disruption. In response to market dynamics, a part of the Group’s full freighter capacity is being redeployed to Asia."
For the first nine months of 2024, cargo revenue declined nine percent to €1.7 billion even as tonnage was up three percent at 661,000 tonnes. While ATK increased two percent to 10.7 billion, RTK was up three percent at 4.9 billion.
The Group operates six cargo planes at the end of September 30, 2024 - unchanged from December 31, 2023.
Group Q3 revenue up 4%
Air France-KLM Group's total revenue was up four percent at €9 billion for Q32024 and net income dropped 13 percent to €824 million. For nine months, revenue increased four percent to €24 billion while net income was down 58 percent to €510 million.
"The third quarter revealed mixed trends," says Benjamin Smith, Group CEO, Air France-KLM Group. "Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated.
"At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements. These measures are aligned with the Group’s ongoing transformation efforts aimed at further enhancing overall performance.
"Beyond their financial implications, the Olympic Games provided a unique platform to demonstrate the Group’s operational expertise and capabilities while offering unparalleled visibility for France as a destination. In the long term, this will be advantageous for the Group.
"We also made further progress in our decarbonisation initiatives, as evidenced by the signing of a major sustainable aviation fuel (SAF) purchase agreement with TotalEnergies. This contract, one of the largest ever signed by the Group, highlights our commitment to fostering the development of SAF supply chains, which is a crucial lever in reducing our carbon footprint.”
Schiphol Airport tariff increase
Schiphol airport recently announced a tariff increase of 41 percent w.e.f April 2025. KLM Group estimates an EBIT impact in 2025 in the range of €65-110 million, the release added.
Sustainability moves
By the end of September 2024, 24 percent of the Group's fleet was composed of new generation aircraft, compared to 19 percent at the end of September 2023. The Group plans to increase this ratio to 80 percent by 2030.
