Copyright © BusinessAMBE 2023

In the airline industry, the quarterly figures for the first three months of 2024 were announced today. What stands out is that every airline is reporting quite a loss. The causes vary widely.

In the news: Both Brussels Airlines and Air France-KLM went a bit more firmly into the red.

  • Brussels Airlines had to take a loss of 58 million euros in this first quarter. That's a third more when compared to the same quarter a year ago.
  • According to financial director Nina Öwerdick, this is mainly due to the strikes that took place: the pilots went on strike in January, the stewards in February. "As soon as a strike is threatened, we see an immediate impact on our travelers. With uncertainty, people stop booking," she explained.
    • Brussels Airlines estimates the cost after the strikes at 14 million euros. Without them, the loss would have been the same as the first quarter of 2023.
  • Air France-KLM also had to take a record loss. The group reported a net loss of 480 million euros in the quarter. This was said to be due to rising labor costs, aircraft problems and disrupted international traffic, reports said. Financial results from cargo traffic were also disappointing.

To follow: Both airlines are handling the loss very differently.

  • Brussels Airlines makes the case that these negative results are easily reversed. It is looking forward to a successful summer season. "Last year we also made losses in the first quarter, but still posted a record profit for the whole year. We make money in the second and third quarters," Öwerdick said.
    • At the same time, Brussels Airlines also wants to work more seasonally and adjust more to lower demand in the first quarter.
  • A different story at KLM, there cuts will be mostly on personnel. Finance director Bas Brouns testifies in the Financieele Dagblad: "We will look very critically at filling indirect positions and where possible postpone or discontinue them. We will also scrutinize investments and reconsider if necessary."
    • But Air France-KLM will also invest 3 billion euros in new aircraft and train more pilots. This is how it hopes to improve operationally.

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