Air France-KLM Raises Fuel Cost Forecast
Middle East tensions push the airline group's annual operating costs to $9.2 billion.
The Air France-KLM airline group has revised its fuel expenditure estimate upward for the year. The company now expects to spend $9.2 billion, surpassing the previous forecast of $8.9 billion made in July.
The increase in costs reflects ongoing pressure from oil prices driven by geopolitical instability in the Middle East. This figure represents a $2.3 billion increase compared to the amount recorded last year.
To address this scenario, the group has adopted cost-cutting measures. The company suspended hiring for non-operational roles and began a reorganization within the KLM cargo and maintenance sectors.
Operational capacity has also been adjusted. The growth projection for the year has fallen to approximately 2%, which is below the initial estimate that ranged between 2% and 3%.
In the third quarter, adjusted operating profit reached 1.35 billion euros. The result beat the market consensus of 1.08 billion euros even though revenue fell slightly short of expectations.
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