AF-KLM released results broadly in line with expectations. The group continues to deleverage the balance sheet that now displays a satisfying net debt/EBITDAR ratio. On the negative side, capex came in higher than expected and the trend should continue in 2018, while fuel costs will rise again. Unit costs also disappointed being impacted by higher staff costs, despite this being one of the main ways of improving costs. Finally, the gap in operating margin between AF and KLM is still widening.
16 Feb 2018
Mixed results and unambitious strategy
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Mixed results and unambitious strategy
Air France-KLM SA (AFK:WBO) | 0 0 (-5.7%) | Mkt Cap: 4,338m
- Published:
16 Feb 2018 -
Author:
Marc Laubel -
Pages:
3
AF-KLM released results broadly in line with expectations. The group continues to deleverage the balance sheet that now displays a satisfying net debt/EBITDAR ratio. On the negative side, capex came in higher than expected and the trend should continue in 2018, while fuel costs will rise again. Unit costs also disappointed being impacted by higher staff costs, despite this being one of the main ways of improving costs. Finally, the gap in operating margin between AF and KLM is still widening.