Air France-KLM CFO Says Demand, Load Factors Increasing

The video discusses Europe's biggest carrier's strategy to expand capacity by 4% following a 42% profit increase in 2017. The CFO, Frederica GI, talks about the competitive landscape, particularly the rise of low-cost carriers, and the company's strategic alliances with Delta and Virgin Atlantic. The discussion also covers the impact of fuel costs on ticket pricing and revenue projections. The potential partnership with Alitalia is explored, emphasizing the importance of industry consolidation for profitability.

What is the airline's strategy to defend its market share?

• Reduce ticket prices by 10%

• Introduce new luxury services

• Expand into Asian markets

• Increase seating capacity by 4%

How is the airline responding to the rise of low-cost carriers?

• By exiting the European market

• By cutting down on services

• By forming alliances with other airlines

• By reducing its own prices

What is the airline's approach to handling increased fuel costs?

• Passing costs immediately to passengers

• Absorbing all costs internally

• Reducing flight frequency

• Gradually transferring costs over 12 months

What is a key factor differentiating the airline's strategy from Ryanair's?

• Emphasis on long-haul network

• Exclusive focus on European markets

• Immediate cost transfer to passengers

• Focus on short-haul flights

What is the airline's expectation for unit revenue in the first quarter of 2018?

• Positive growth

• No change

• Significant decline

• Negative growth

What is the airline's stance on industry consolidation?

• It is unnecessary

• It is vital for profitability

• It should be avoided

• It is only beneficial in the US

What is the airline's position regarding Alitalia?

• They are uninterested in any involvement

• They are interested in maintaining partnership but not equity

• They plan to acquire Alitalia

• They have made an offer to buy Alitalia