Air France KLM

Good cost performance in 2019 but Covid-19 virus has weakened forward bookings

  • Sectors : Airlines & Other Transport
  • Companies : Air France KLM

Ratings and price correct at time of issue.

  • Air France KLM

    Closing Price: 973c

  • RATING 20/01/20

  • PREVIOUS RATING 21/01/19

    OUTPERFORM

DAVY VIEW

A good cost performance in Q4 and robust cost and capacity 2020 guidance are probably offset by the -€150-200m impact on the operating result for February-April 2020 from the Covid-19 virus, with unit revenue expected to be down in Q1 and long-haul forward bookings down 3-5 points from February to May. However, with a €300m decrease in the fuel bill, there is unlikely to be material movement on 2020 estimates for now. Conference call at 07:15 CET.

Download full report with analyst certification and important disclosures

Feb 20 2020, 07:30 GMT

Download