The Air France-KLM share plummeted on the Paris Stock Exchange: in the morning the share was also suspended due to excessive downside, after it had dropped to 12,4 euros per share (yesterday it had closed almost 14 euros), and towards lunchtime loses even more than 6%, but regaining the 13 euro per share.
The reason for the flop is very simple: the French airline has lifted the veil on the financial statements for the third quarter, which closed with a net profit of 552 million euros, up 1,5% compared to the 544 million allocated balance sheet in the same period of the previous year. Holding back profitability, which was growing but slower than expected, were €311 million in non-recurring costs due to a cabin crew pension arrangement.
Operating profit instead improved by 38,7% to 1,022 billion euros, exceeding analysts' expectations of 950 million. Revenues rose by 4,3% to 7,24 billion euros while traffic increased by 5,1% to 27,9 million passengers. Looking ahead, the French-Dutch carrier expects passenger capacity growth of between 3% and 4% for the fourth quarter, while its low-cost subsidiary Transavia is expected to file an increase of 6-7%. No mention of annual earnings estimates.
