Air France-KLM is targeting a €2 billion ($2.2 billion) improvement in operating profitability over the next five years as it today sets out new long-term objectives.
The European airline group will detail its strategy for delivering the improved financial performance, which sees it targeting an operating margin above 8%, during a Capital Markets presentation in Paris later on 14 December.
”Based on a further acceleration of its transformation program and an enhanced cost effectiveness, the group’s operating result is expected to improve by €2 billion over the next five years across all businesses,” it says.
Air France-KLM made an operating profit of €1.2 billion in 2022 on an operating margin of 4.5%
The wide-ranging strategy includes further growth of its Transavia brand and unit cost reduction to help it develop its low-cost presence in the Netherlands and Paris, as well as capturing “the full potential” of its Paris Orly network.
Recently, the group outlined long-term plans to focus Air France operations on Paris Charles de Gaulle, and to grow Transavia at Orly.
