AF/KL release half year results 2013
Jul 26, 2013, 2:08 am
#1
FlyerTalk Evangelist
Original Poster
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
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AF/KL release half year results 2013
See http://nieuws.klm.com/afkl-half-year-results-2013/
It's a mix of good news and bad news as you can see for yourself. They still have a lot of work to do.
It's a mix of good news and bad news as you can see for yourself. They still have a lot of work to do.
Jul 26, 2013, 12:44 pm
#2
FlyerTalk Evangelist, Ambassador, British Airways Executive Club
Join Date: Jun 2008
Location: Somewhere between 0 and 13,000 metres high
Programs: AF/KL Life Plat, BA GGL+GfL, ALL Plat, Hilton Diam, Marriott Gold, blablablah, etc
Posts: 30,499
Wow, the MiNi and Hop! Revolution is proving an amazing success, mea culpa, I'm very impressed: This new offensive has led to a fantastic increase of passenger numbers of 2% (while offered seats increased by 1.4%, so the load factor has increased by an impressive 0.5% according to AF).
This has also led to the strongest increase in profitability in the entire universe with the unit cost down by 1.9% but wait, unit income is also down by 1.1% (additional note: the fuel charge alone is down by nearly 8% over the period). So overall, the net loss is down to €451 million (instead of €690 million last year). Woohoo, champagne! That is altogether spectacular!
(Note: BA and LH both announce their interim financial results on 2 August so in fairness, if they do worse than AF this will not be a horrible result for AF).
This has also led to the strongest increase in profitability in the entire universe with the unit cost down by 1.9% but wait, unit income is also down by 1.1% (additional note: the fuel charge alone is down by nearly 8% over the period). So overall, the net loss is down to €451 million (instead of €690 million last year). Woohoo, champagne! That is altogether spectacular!
(Note: BA and LH both announce their interim financial results on 2 August so in fairness, if they do worse than AF this will not be a horrible result for AF).
Jul 28, 2013, 3:05 am
#3
Join Date: Apr 2005
Programs: Eurostar Carte Blanche, SBB-CFF-FFS GA-AG, SNCF Grand Voyageur LeClub
Posts: 7,832
Yikes, the company is now down to a market cap of EUR 1.8 BN.
Compare that to Aéroports de Paris, which is worth more than USD 7 BN. And by the way so is Lufthansa, and IAG despite Iberia seems profitable (wait for August 2) and is worth more than EUR 6 BN. AFKL is trading at less than half its book last time I looked. So if you want to buy the company you get it for a discount. Guess not many people believe in the company.
I really don't see what AFKL can do. Slash more costs? Only if they find a way that does not hurt their product. Increase revenues? How? The passengers added through MiNi etc. may soothen the pain a little, but it's not enough for a turnaround which will yield a sustainably profitable business and enough cash that can then be reinvested.
Compare that to Aéroports de Paris, which is worth more than USD 7 BN. And by the way so is Lufthansa, and IAG despite Iberia seems profitable (wait for August 2) and is worth more than EUR 6 BN. AFKL is trading at less than half its book last time I looked. So if you want to buy the company you get it for a discount. Guess not many people believe in the company.
I really don't see what AFKL can do. Slash more costs? Only if they find a way that does not hurt their product. Increase revenues? How? The passengers added through MiNi etc. may soothen the pain a little, but it's not enough for a turnaround which will yield a sustainably profitable business and enough cash that can then be reinvested.
