Q3 operating profit 1.34 bln euros, 2 below consensus
FY fuel costs seen at 7.8 bln vs 7.5 bln previously
Shares drop as much as 8 to record low

LONDON, Oct 27 Reuters Shares in Air FranceKLM fell as much as 8 to an alltime low on Friday as record thirdquarter profits just missed expectations and some analysts worried about rising fuel costs and a lack of profit guidance for the fourth quarter.

The airline reported an operating profit of 1.34 billion euros 1.37 billion for JulySeptember, up 31 yearonyear but 2 below analysts39; consensus forecast.

British Airwaysowner IAG beat forecasts on Friday with record third quarter profits, as airlines benefit from strong summer travel.

Air FranceKLM left its guidance for capacity, capital spending and unit costs unchanged for the full financial year.

All in all we believe the results are mixed, not delivering a beat this time and lacking Q4 yield commentary, Stifel analysts wrote in a note, also pointing to an increase in fullyear fuel cost expectations to 7.8 billion from 7.5 billion.

Air FranceKLM said it did not expect to return to prepandemic capacity levels in the French market. Earlier this month, it said it would stop operating most domestic flights from ParisOrly airport by summer 2026 amid falling demand for domestic business flights and a growing shift to rail travel.

In the domestic market where we are not returning to preCOVID levels and we do not expect to return to preCOVID levels … because of the TGV…