Investing.com -- Shares in Air France KLM (EPA:AIRF) dipped on Tuesday after the carrier reported a deeper-than-anticipated operating loss in the first quarter that stemmed from flight disruption costs and weaker cargo revenues.
Strike actions and one-time staff expenses, along with customer compensation payouts due to disappointing performance at KLM, led to steep costs at the airline during the three month period.
The operating loss during that time amounted to 489 million euros, compared to a company-compiled forecast of 424 million euros, according to Reuters. In the corresponding quarter last year, Air France-KLM's slipped to a loss of 306 million euros.
A net loss of 480 million euros also wider than expectations of a loss of 407 million euros.
Despite this "challenging" start to 2024, Air France-KLM stuck by its outlook for annual growth in unit costs capped at 1% to 2%. The figure rose to 4% in the first quarter. In a statement, Chief Executive Ben Smith said that he was "confident" in the group's ability to acheive this target.
Analysts at UBS noted that while the quarter was weaker than expected, the "building blocks" for the full-year performance "should provide support" to Air France-KLM's share price.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.