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Air France-KLM loss, IAG profit

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Varied results for two major carriers
Air France-KLM suffered a deeper operating loss for the first quarter, while this morning International Airlines Group, owner of British Airways and Iberia, posted a bigger-than-expected operating profit for the same period.
Air France-KLM says bookings in its key long-haul sector for the coming months are ahead of last year, but the group has been weighed down by a strong dollar.
It posted a €216 million net loss for January-March, which is €61 million worse than the same period last year. Operating loss, meanwhile, slumped 44% to €143 million.
The group has many costs in dollars but most sales in euros, and it suffered a €72 million hit in earnings due to this.
Unit revenue for passenger traffic fell 1.4%, compared to a 3.6% fall a year ago. But although passenger numbers increased 5.2% to 20.9 million, sales rose only 1.9% to €5.71 billion.
IAG saw rise in operating profit of almost 10% for the first quarter, to €170 million, up from €155 million in the same period last year – a record performance for the group in this seasonally poor quarter.
But revenue fell by almost 3% to €4.9 billion, hit by the weak pound and the timing of Easter, the group said. Operating profit for 2017 is expected to keep improving.
MarketWatch / FT

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