AFI KLM E&M Recovers In Line With Parent Airlines
Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) moved back into profit in the second quarter of 2022 following a small loss in the prior-year period.
The Franco-Dutch MRO provider posted a €57 million ($58.3 million) operating profit on revenues of €911 million, which were up 35% on the previous year.
Of those revenues, 38% came from third-party work—slightly more than in the 2021 calendar year—and the rest from Air France-KLM group airlines, which managed to return to a net profit in the second quarter.
“The increase in internal revenues is consistent with the activity increase of the Air France-KLM airlines compared to the Second quarter 2021,” stated the company.
Third-party business agreed to during the quarter included new contracts with Air Canada and Aeromexico, while the company was also keen to highlight the significance of Air France-KLM’s selection in July of 200 CFM LEAP engines for its Airbus A320neo and A321neo aircraft.
Currently, AFI KLM E&M is positioned to assist CFM LEAP operators during the entry-into-service phase, carrying out on-wing and on-site work on LEAP-1A and LEAP-1B engines.
Air France Industries, meanwhile, will perform MRO work on Pratt & Whitney PW1500G geared turbofan and Rolls Royce Trent-XWB 84k engines.
This work will be offloaded from the engine OEMs and other customers that have contracted maintenance services with the OEM. Here, the commercial relationship will be predominantly with the OEM and not with the operator of these engines.
Furthermore, AFI KLM E&M will compete for engine parts advanced repair work within the OEM’s networks.