European companies are optimistic about the year 2024
European companies are optimistic about the year 2024
Despite supply challenges and industry hardships, British Airways' parent company IAG and Air France-KLM have painted a positive outlook for travel demand in 2024.
Haber Giriş Tarihi: 03.03.2024 12:00
Haber Güncellenme Tarihi: 03.03.2024 12:00
Kaynak:
AirportHaber
British Airways' parent company IAG and Air France-KLM have painted a positive outlook for travel demand in 2024 despite supply challenges and industry hardships. IAG's confidence reflected in the increase in stock prices following solid results for 2023 and expectations of maintaining capacity in 2024.
In contrast, Air France-KLM experienced an unexpected loss in the fourth quarter of 2023, with increased costs and disruptions due to tensions in the Middle East contributing to a significant drop in early trading of its shares.
Despite this setback, the French-Dutch airline reported record revenue for 2023 and an operating profit of €1.7 billion in line with forecasts. The company also managed to reduce its net debt by €1.3 billion, with CEO Ben Smith emphasizing efforts to strengthen the balance sheet.
Both airlines are grappling with high jet fuel prices, geopolitical uncertainties, and wage negotiations, casting a shadow over industry expectations. Air France-KLM's operating loss of €56 million in the fourth quarter fell short of the expected €88 million profit, but the airline is optimistic for the upcoming summer and aims for capacity close to pre-pandemic levels.
IAG is not concerned about Boeing's aircraft delivery delays and is ready to switch to other variants if necessary. This comes after Boeing faced quality issues and regulatory scrutiny, including an incident involving the new Alaska Airlines 737 MAX 9.
Lufthansa, another major European airline, is expected to miss its 2024 profit margin target as it negotiates higher wages to resolve ongoing strikes. Analysts note that despite strong demand, capacity remains a challenge for airlines. Air France-KLM CFO Steven Zaat stated that the issue is not selling tickets but having adequate capacity.
Bernstein analysts mentioned that Air France-KLM's fourth-quarter loss included one-off severance costs and the implementation of an employee share plan, but they expect cost reduction and margin expansion to continue for the airline.
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European companies are optimistic about the year 2024
Despite supply challenges and industry hardships, British Airways' parent company IAG and Air France-KLM have painted a positive outlook for travel demand in 2024.
British Airways' parent company IAG and Air France-KLM have painted a positive outlook for travel demand in 2024 despite supply challenges and industry hardships. IAG's confidence reflected in the increase in stock prices following solid results for 2023 and expectations of maintaining capacity in 2024.
In contrast, Air France-KLM experienced an unexpected loss in the fourth quarter of 2023, with increased costs and disruptions due to tensions in the Middle East contributing to a significant drop in early trading of its shares.
Despite this setback, the French-Dutch airline reported record revenue for 2023 and an operating profit of €1.7 billion in line with forecasts. The company also managed to reduce its net debt by €1.3 billion, with CEO Ben Smith emphasizing efforts to strengthen the balance sheet.
Both airlines are grappling with high jet fuel prices, geopolitical uncertainties, and wage negotiations, casting a shadow over industry expectations. Air France-KLM's operating loss of €56 million in the fourth quarter fell short of the expected €88 million profit, but the airline is optimistic for the upcoming summer and aims for capacity close to pre-pandemic levels.
IAG is not concerned about Boeing's aircraft delivery delays and is ready to switch to other variants if necessary. This comes after Boeing faced quality issues and regulatory scrutiny, including an incident involving the new Alaska Airlines 737 MAX 9.
Lufthansa, another major European airline, is expected to miss its 2024 profit margin target as it negotiates higher wages to resolve ongoing strikes. Analysts note that despite strong demand, capacity remains a challenge for airlines. Air France-KLM CFO Steven Zaat stated that the issue is not selling tickets but having adequate capacity.
Bernstein analysts mentioned that Air France-KLM's fourth-quarter loss included one-off severance costs and the implementation of an employee share plan, but they expect cost reduction and margin expansion to continue for the airline.
Kaynak: AirportHaber
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