Neil Glenn's questions to AIR FRANCE-KLM /FI (AFLYY) leadership • Q3 2023
Question
Asked about the medium-term margin outlook for Transavia, the company's current market share on Scandinavian connecting flows, and the reasons for capacity deficits to China and Japan.
Answer
Transavia's current margin is impacted by taking over unprofitable Air France routes, but its medium-term outlook is strong given its position at Orly and improved cost structure. KLM already has a strong position in Scandinavia, and the SAS deal is expected to capture incremental traffic. The capacity deficit to China is primarily due to visa issuance difficulties for Chinese citizens traveling to Europe, not Russian airspace issues.