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Rich American tourists that spend at fashion brands and hotels in Paris can increase the recovery of Air France-KLM from “Challenging” years, said the Air Force Group CEO.
Ben Smith said Air France He saw the “incredible” demand of leisure passengers in his business and first -class headquarters, and the French airline responded by transferring her business model to focus on the top end of the market.
“It’s amazing that Americans pay to come here if you look at what it costs to stay down the street on [five-star] The Bristol Hotel, “Smith told the Financial Times in an interview in the Paris Air Force Group. The biggest apartment at the Bristol Hotel can cost as much as $ 50,000 per night, with more economic options starting at $ 2,000 per night.
Air France charges about $ 24,000 for a return first -class ticket between New York and Paris in April, launching an updated first -class cabin this month.
Turning up to a higher end of the market came as an airline, which owns Air France, a Dutch carrier of KLM and a minority share in Scandinavian Airline SAS, reported on Thursday to a sharp drop in the whole year.
Net profit was halved from year to year to 489 million euros, which Smith put down on factors, including the Olympics Rejection of some passengers From visits to French capital, as well as higher costs caused by operational problems in KLM. The revenue increased by 5 percent to 31.5 billion euros.
However, more than 15 percent in Morning Trade increased the shares on Thursday after the results have comfortably defeated the expectations of analysts.
Smith said that in 2024 “the year was shaped by both operational and external challenges.”
US and European airlines have reported that the holidays for high costs replace corporate passengers at their most expensive seats. But Smith said that the connections of Air Francea with Paris, a city synonymous with luxury brands, means that he is in a strong position to capture this request for top free time.
The airline said that average yields, powerful for air prices, increased 25 percent between 2018 and 2024 on tickets sold on US customers.
Smith added that Air France also wants to replace some economics passengers with a “greater value” of a business class passengers on their flights with a short way, which feed on the longer routes through the airport hubs.
“We think [premium leisure] triggers more yields. And with the cost of the cost we have, we need every little cen, “he said.
He also warned that European airlines could not directly compete with Turkish airlines or carriers of the Middle East, who feed passengers to destinations throughout Asia, with one stop at their airports.
These carriers, including Emirates, Etihad and Qatar Airways, do not undergo environmental taxes from the EU, including a phase request in expensive biofuels to reduce emissions.
“We’re not in equal terrain.. It’s very frustrating,” Smith said. “To imagine how we open new routes in areas where bay carriers are dominant, this is not realistic unless there are enough people who want to fly non -stop.”
Smith, who was part of a delegation of the French government in Portugal last week, said Air France-KLM would only be interested in acquiring a majority stake in a national carrier. Lisbon is expected to privatize the airline later this year.
“We will need a path or guarantee for the control of the majority stake,” he said.
The owner of British Airwaya Ig and the German Lufthans Air Force group also said they wanted to buy TAP, which has a strong flight network in South America.
An additional reporting of Ian Johnston in Paris
