LONDONGDANSK, April 30 Reuters Airline group Air FranceKLM on Tuesday reported a higher than expected first quarter operating loss of 489 million euros 524.31 million as it faced high customer compensation at Dutch carrier KLM and oneoff payments to staff.

European airlines have been struggling with climbing costs surrounding labour disruption and geopolitical turbulence in recent months, with German group Lufthansa issuing a profit warning earlier in April tied to strikes.

Still, Air FranceKLM maintained its outlook, including a vow to keep a rise in unit costs capped at 12 for the 2024 financial year, even though they climbed to 4 in the first quarter.

As anticipated, our operating income was impacted by disruption costs and a slower cargo business. We nonetheless remain confident in our ability to achieve our 2024 unit cost outlook, Chief Executive Ben Smith said in a statement.

Analysts had forecast the group39;s Q1 loss at 424 million euros, according to a companycompiled consensus, while last year39;s Q1 loss was 306 million euros.

Net income was also lower than forecast, with analysts expecting a loss of 407 million euros 436.39 million and the company reporting a loss of 480 million euros 559.69 million.

Specifically, a poor operational performance at KLM between December 2023 and early March led to compensation payouts to customers amounting to around an additional 50 million euros, with costs going up at suppliers and air traffic control services more…