PARIS/BERLIN: Air France-KLM said improving price trends helped it report better than expected third quarter profits, joining major European peers in benefiting from strong summer demand.
The Franco-Dutch company reported third quarter operating profit up 38.7 percent to €1.022 billion, against the average analyst expectation of €953 million in a Reuters poll.
Unit revenues — a closely watched measure of how much income is generates per unit of capacity — increased 4.1 percent in the quarter and Air France-KLM said it expected an increase in the fourth quarter as well, driven by long-haul bookings.
“Unit revenues in October were positive, forward bookings for November and December are ahead of last year,” finance chief Frederic Gagey said.
Lufthansa last week said unit revenues rose 4.5 percent in the third quarter, outpacing British Airways-parent IAG, which saw a 2.2 percent rise as it added capacity from Aer Lingus and low cost unit Level to transatlantic routes.
Air France-KLM has also been benefiting from a return of US and Asian passengers to Europe this year after attacks deterred travelers last year.
The group also said on Friday it would be introducing an €11 one-way surcharge on bookings made via third-party GDS systems, such as Amadeus, Travelport and Sabre from April 1, 2018. It is following the example of Lufthansa and British Airways as airlines use new technology to gain more control over ticket sales.
Air France-KLM said it still wanted to cut unit costs by 1-1.5 percent this year, although it now said that target was excluding effects caused by higher load factors and profit sharing.
The group’s French brand has lagged rivals on the cost-cutting front, leading to lower profitability. Air France reported a Q3 profit margin of 11 percent, with KLM at 18.5 percent. That compares with an operating profit margin of 18.1 for the Lufthansa brand and 21.5 percent for British Airways.
Its Air France business has set up a new lower cost airline Joon, which it hopes will attract a younger generation of customers and make it more competitive against leaner Gulf-based rivals and low cost carriers.
Air France-KLM did not give a profit outlook for the year. Analysts forecast on average €1.519 billion, which would be a 45 percent jump on last year.
Air France-KLM third-quarter profit jumps as price trends improve
Air France-KLM third-quarter profit jumps as price trends improve
Closing Bell: Saudi main index slips to close at 11,228
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, lost 23.17 points, or 0.21 percent, to close at 11,228.64.
The total trading turnover of the benchmark index was SR2.99 billion ($797 million), as 170 of the stocks advanced and 82 retreated.
On the other hand, the Kingdom’s parallel market Nomu gained 449.38 points, or 1.90 percent, to close at 24,093.12. This comes as 43 of the stocks advanced while 27 retreated.
The MSCI Tadawul Index lost 6.07 points, or 0.40 percent, to close at 1,511.36.
The best-performing stock of the day was Obeikan Glass Co., whose share price surged 7.54 percent to SR27.66.
Other top performers included Alamar Foods Co., whose share price rose 6.80 percent to SR47.10, as well as Saudi Kayan Petrochemical Co., whose share price climbed 6.79 percent to SR5.66.
Saudi Investment Bank recorded the steepest drop, falling 3.21 percent to SR13.56.
Jahez International Co. for Information System Technology also saw its share price fall 3.15 percent to SR13.55.
Rabigh Refining and Petrochemical Co. declined 2.78 percent to SR7.34.
On the announcements front, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company recorded a net loss of SR18.8 million, compared with a net profit of SR95.8 million a year earlier.
The net loss was mainly due to ongoing market challenges that resulted in continued pricing pressures in fresh poultry, inflationary cost pressures, higher financing expenses, and depreciation and ramp-up costs from new facilities, partially offset by increased production volumes and cost-optimization initiatives.
Tanmiah Food Co. ended the session at SR58.20, up 3.72 percent.
United International Holding Co., also known as Tas’heel, announced its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR273.64 million in 2025, up 23.05 percent from 2024, primarily driven by a 23.4 percent rise in revenues. The revenue growth helped lift gross profit by 23.7 percent.
Tas’heel ended the session at SR146.80, down 0.28 percent.
