(AOF) – Air France KLM shows a clear increase after announcing the increase in its operating margin outlook which was to be “greater than 8% during the 2026-2028 period”. The group saw its share price rise by 7.68% to 13.13 euros, after this good news revealed during its investor day. “The transformation that we have undertaken since 2019 has produced solid results, allowing us to re-enter the leading group of European leaders in the airline sector” declared the group’s boss, Benjamin Smith.
“Based on further acceleration of its transformation program and improved cost-effectiveness, the group’s operating profit is expected to improve by €2.0 billion over the next five years for the all activities” adds Air-France KLM in its press release.
The group also expects “significantly positive” adjusted free operating cash flow over this period.
Air France-KLM announces that it will “continue to invest in the renewal and maintenance of the fleet” with net investment expenditure estimated between 3.0 and 3.5 billion euros per year between 2024 and 2026 and between 3.5 and 3.8 billion euros per year in 2027 and 2028.
It also reiterates its ambition to be a leader in sustainable aviation by supporting the development of SAF (sustainable aviation fuel) production capabilities, worldwide, through supply contracts and investments direct.
“We are now well positioned to further accelerate and exploit the full potential of our group’s assets to ensure sustained and more profitable growth, while achieving the ambitious targets we have set to reduce our environmental impact,” concludes Benjamin. Smith.
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