Investing.com -- Shares in Air France KLM (EPA:AIRF) dipped on Tuesday after the carrier reported a deeper-than-anticipated operating loss in the first quarter that stemmed from flight disruption costs and weaker cargo revenues.
Strike actions and one-time staff expenses, along with customer compensation payouts due to disappointing performance at KLM, led to steep costs at the airline during the three month period.
The operating loss during that time amounted to 489 million euros, compared to a company-compiled forecast of 424 million euros, according to Reuters. In the corresponding quarter last year, Air France-KLM's slipped to a loss of 306 million euros.
A net loss of 480 million euros also wider than expectations of a loss of 407 million euros.
Despite this "challenging" start to 2024, Air France-KLM stuck by its outlook for annual growth in unit costs capped at 1% to 2%. The figure rose to 4% in the first quarter. In a statement, Chief Executive Ben Smith said that he was "confident" in the group's ability to acheive this target.
Analysts at UBS noted that while the quarter was weaker than expected, the "building blocks" for the full-year performance "should provide support" to Air France-KLM's share price.