The final quarter of 2021 marked a “turning point” for Air France-KLM despite the impact of Omicron.
Chief executive Benjamin Smith said: “For the first time since the beginning of the pandemic, the group posted better than pre-Covid results, with a positive operating result.
“While the end of the quarter saw the return of travel restrictions along with the Omicron variant, the overall performance reflects both the pent-up demand for travel and the outcome of our transformation efforts.”
He added: “The crisis is not over yet, but this makes us optimistic for the future, as we accelerate said efforts to improve our performance from both an economical and environmental standpoint.
“The investments in fleet renewal across all of the group’s airlines – including the joint order for 100 Airbus A320neo family aircraft with acquisition rights for an additional 60 aircraft – embody this goal and emphasise our dedication to preparing for the future today.”
His comments came as the European airline group reported a 31% rise in annual passenger carryings to 44.6 million last year over 2020. But this represented around 60% of pre-pandemic 2019 capacity, with the first half of 2021 more impacted by travel restrictions.
Short and medium-haul, African and Caribbean and Indian Ocean routes were the best performers.
An operating result of €176 million was achieved in the fourth quarter, surpassing the equivalent three months in pre-Covid 2019.
A net quarterly loss of €127 million was an improvement of €874 million year-on-year.
The group was able to close 2021 with positive earnings [ebitda] of €745 million, up €2.4 billion.
Air France-KLM took out various refinancing options during the year to help pay off a €4 billion French state loan, with the date due for the final instalment extended until May 2025.
More equity strengthening measures are planned including a possible capital increase and refinancing of assets to repay state air from France and the Netherlands.