Air France KLM Posts Decline in 2016 Revenue

Franco-Dutch carrier Air France KLM (AF.P) is planning to amplify its existing cost reduction initiatives this year after posting a decline in revenue in 2016 which was impacted by staff strikes and the weakening of several major currencies.

Formed from the merger of Dutch airline operator KLM and Air France in 2004, the group posted revenue of 24.84 billion euros ($26.42 billion) in 2016, down 3.3% from the prior year, according to results published on its website on Thursday. The number of passengers advanced by 4% to 93.4 million year-on-year and operating income was worth 1.05 billion euros, up from 780 million euros in 2015 and up by 558 million euros when currency effects were stripped out.

Strikes by the group’s pilots and cabin crew last year had a negative impact of 130 million euros on operating income while weakening currencies, including Britain’s pound sterling, the Brazilian Real and Chinese Yuan, contributed to a net impact of currency on operating income of negative 289 million euros, the group said. Positive contributions to operating income included a sharp drop in the group’s fuel tailwind and declining unit costs.

By Celina Yao