KLM bullish on growth, expects full recovery by 2024

KLM bullish on growth, expects full recovery by 2024
KLM bullish on growth, expects full recovery by 2024

Africa-Press – Kenya. Air-France KLM group airline expects its carrying capacity to go back to 2019 levels from 2024.

This follows an increase in passenger capacity in the second half of 2023 by 8.2 per cent or 24.7 million passengers across its airlines compared to the same review period in June 2022.

The percentage increase was at 88 per cent of 2019 levels, according to the group’s half-year results, as the capacity increased by 8.2 per cent.

In Africa, the Available Seat Per Kilometre (capacity) is expected to rise to 14.74 million up from 13.14 million registered in 2022.

“We will not only recover to 2019 levels but also set new standards for the industry. This remarkable growth in passenger capacity and improved load factor is a testament to the dedication and hard work,” said AFKLM General Manager for East and Southern Africa, Nigeria, and Ghana, Marius van der Ham.

For the third and fourth quarters of 2023, the group expects to register approximately 95 per cent capacity in Available Seat Per Kilometre to 128.69 million globally, a 13 per cent increase from the 114.26 million registered in 2022.

With increased passenger traffic, the group saw its net income for the review period grow by 88 per cent to Sh96.04 billion from Sh51 billion registered within the same review period in 2022.

The revenues from ordinary activities went up 14 per cent to Sh1.19 trillion driven by a higher capacity (+8 per cent), a higher passenger load factor (+3 points), and a higher passenger yield (+9 per cent).

Moving into 2023, the group seeks to enhance its transformation efforts including fleet renewal and spending optimisation to compensate for the inflationary pressure on cost. This will see it decrease its unit cost in the period 2024-2026 year over year against a constant fuel price.

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