Latest news with #AirFranceKLM
Reuters
19 hours ago
- Business
- Reuters
Air France-KLM pulls out of process to buy stake in Spain's Air Europa
MADRID, July 31 (Reuters) - Air France-KLM ( opens new tab has pulled out of the process to buy a stake in Spanish privately owned airline Air Europa, a spokesperson for the Franco-Dutch airline group said on Thursday. Air France-KLM could not reach an agreement with Globalia, which controls Air Europa, the spokesperson said. A spokesperson for Globalia did not immediately respond to a request for comment. Germany's Lufthansa ( opens new tab and Turkish Airlines have approached Globalia to present bids for a stake in the Spanish airline, which is 20% owned by British Airways owner IAG (ICAG.L), opens new tab. Lufthansa CEO Carsten Spohr said the airline was still in the race, though talks were complex. "I cannot yet give an answer whether it will fail or not. I can confirm that it is very difficult to get this to a success," he said in a call with analysts and investors. He confirmed his company was interested in Portugal's TAP. Air Europa, which flies within Spain and connects Madrid with large Spanish cities in Europe and Latin America, seeks to raise cash to repay a government loan. Pressure has mounted on airlines to consolidate in Europe to better compete with major global rivals from the United States and the Middle East. Many are focusing on the most popular routes in southern Europe as a target for expansion.
Reuters
21 hours ago
- Business
- Reuters
Lufthansa, Air France-KLM defy trade war worries with Q2 growth
LONDON/CHICAGO/GDANSK, July 31 (Reuters) - European airlines Lufthansa ( opens new tab and Air France-KLM ( opens new tab reported higher second-quarter profits on Thursday, defying worries that economic uncertainty and U.S. tariffs might hit transatlantic travel. Transatlantic connections are among the most lucrative for airlines, having bolstered British Airways-owner IAG (ICAG.L), opens new tab in recent years as European competitors struggled. A number of U.S. airlines, including Delta (DAL.N), opens new tab, abandoned their full-year financial forecasts this spring on the back of weakening travel demand after U.S. President Donald Trump's tariffs dented business and consumer confidence. European airlines, however, are bucking the trend. Lufthansa said on Thursday that demand in the United States remained strong despite a weaker U.S. dollar, while Air France-KLM highlighted the strength of its premium offering. Lufthansa reported a 27% year-on-year increase in second-quarter operating profit to 871 million euros ($995 million), beating analysts' average forecast of 805 million euros. "Although the second quarter was again marked by geopolitical crises and economic uncertainties, we are today confirming our positive outlook for the full year," Chief Executive Carsten Spohr said in a statement. U.S. airlines have reported an improvement in bookings since late June after a sharp drop in March and April when Trump unleashed his trade war. While demand has stabilised, airline executives say it is below estimates at the start of the year. Moreover, spending by price-sensitive travellers remains depressed amid lingering uncertainty about the U.S. economy and rising living costs. European travellers are known for being more price-sensitive than Americans, often having less spending power. But wealthy Americans are flocking to Europe this summer. While domestic U.S. travel has struggled, hitting budget airlines, resilient demand for premium and long-haul international travel has helped Delta and United Airlines (UAL.O), opens new tab perform better. Lufthansa's profit beat was helped by its investment in Italy's ITA Airways, which contributed a "surprisingly large" profit to the group's bottom line, Bernstein analyst Alex Irving said in a note to clients. Still, Irving said Air France-KLM had "meaningfully outperformed" Lufthansa on North Atlantic sales. At 0750 GMT, Lufthansa shares were down 1%, while Air France-KLM's were up 2.7%. Lufthansa has struggled with rising labour costs as well as a slower return in traffic from Asia since the pandemic, issuing two profit warnings last year. The move to focus on Italy was a cost-saving measure - the Rome hub is far cheaper to maintain than German bases - that is starting to pay off, the company said. Air France-KLM's second-quarter operating profit rose to 736 million euros from 513 million euros a year earlier, in line with analyst expectations. While Air France has benefited from strong demand to Paris and capitalised on its luxury French appeal, KLM has struggled with ongoing challenges at Schiphol airport near Amsterdam. ($1 = 0.8751 euros)
Bloomberg
a day ago
- Business
- Bloomberg
Air France-KLM Premium Seats Help Lift Second-Quarter Earnings
Air France-KLM reported higher second-quarter earnings as a revamped business and first-class product boosted yields and made up for lower ticket prices in the back of the plane, while cheaper oil kept costs in check. The Franco-Dutch carrier group had operating income of €736 million ($840 million) in the quarter ended June, 43% higher than a year ago, and above the €641.8 million forecast by analysts.
Yahoo
a day ago
- Business
- Yahoo
Air France-KLM's Q2 profit rises, helped by premium sales
By Jesus Calero and Joanna Plucinska LONDON (Reuters) -Air France-KLM reported higher second-quarter operating profit on Thursday, citing strong bookings for its premium services even as the sector frets about the knock-on effects from U.S. President Donald Trump's tariff war. Europe's major airlines have been watching for a possible dip in transatlantic travel as European travellers have shied away from booking trips to the United States this year. But Air France-KLM highlighted its strategy focused on a new first-class cabin and strong sales for its premium economy cabin, particularly for KLM. "We are advancing premiumization, pushing the boundaries of aspirational travel with enhanced products and services," Chief Executive Ben Smith said in a statement. Second-quarter operating profit rose to 736 million euros ($845 million) from 513 million euros for the same quarter last year. That was broadly in line with the 760 million euros expected in an analyst poll compiled by LSEG. The summer travel season is a key test of how well pricing power and booking trends are holding up for carriers like Air France-KLM heading into the second half of the year. Air France-KLM previously said it had cut some economy fares to remain competitive. Still, it confirmed its outlook for the full-year. ($1 = 0.8713 euros) Sign in to access your portfolio
Reuters
a day ago
- Business
- Reuters
Air France-KLM's Q2 profit rises, helped by premium sales
LONDON, July 31 (Reuters) - Air France-KLM ( opens new tab reported higher second-quarter operating profit on Thursday, citing strong bookings for its premium services even as the sector frets about the knock-on effects from U.S. President Donald Trump's tariff war. Europe's major airlines have been watching for a possible dip in transatlantic travel as European travellers have shied away from booking trips to the United States this year. But Air France-KLM highlighted its strategy focused on a new first-class cabin and strong sales for its premium economy cabin, particularly for KLM. "We are advancing premiumization, pushing the boundaries of aspirational travel with enhanced products and services," Chief Executive Ben Smith said in a statement. Second-quarter operating profit rose to 736 million euros ($845 million) from 513 million euros for the same quarter last year. That was broadly in line with the 760 million euros expected in an analyst poll compiled by LSEG. The summer travel season is a key test of how well pricing power and booking trends are holding up for carriers like Air France-KLM heading into the second half of the year. Air France-KLM previously said it had cut some economy fares to remain competitive. Still, it confirmed its outlook for the full-year. ($1 = 0.8713 euros)
