Possible flight tax threatens SAS owner’s earnings

Air France-KLM, co-owner of SAS, reported a 13% decrease in earnings in the third quarter compared to the same period in 2023, with profits amounting to €824 million. The Olympics in Paris adversely impacted the company, as tourists avoided the French capital leading up to and during the games. Despite this, CEO Benjamin Smith emphasized the long-term benefits from the increased visibility for France. Rising costs associated with higher wages for staff and other expenses also affected the company’s performance. Additional concerns loom as French politicians consider imposing a flight tax that could negatively impact Air France-KLM’s operating income by €90 to €170 million. Furthermore, Schiphol Airport’s planned 41% tariff hike in April 2025 is expected to reduce the company’s operating results by €65 to €110 million. Air France-KLM owns 19.9% of SAS and is part of a consortium with Castlelake, Lind Invest, and the Danish state.