Air France-KLM reports 70% jump in profits

In its latest round of figures, Air France-KLM enjoyed a 70 percent jump in net profits to 415 million euros (US$572.45 million) thanks to higher demand and increased profitability in the first quarter to 30 June 2007. Air France’s total operating profits for the period rose 1 percent to 415 million euros (US$572.45 million) while its revenue increased 2.5 percent to 5.95 billion euros (US$8.21 billion). The report also showed that 19.3 million passengers were carried in the period. On Air France’s long haul routes, there was a 3.4 percent increase in passengers and higher unit revenues despite unfavourable currency conditions. Total passenger revenues rose 3.2 percent to 4.76 billion euros while operating income increased 9.1 percent to 396 million euros. However, Air France-KLMs cargo business continued to suffer from weak unit revenues. The division recorded an operating loss of 17 million euros (US$23.45 million), compared with a profit of 28 million euros a year before. The airline said that it was on track to achieving its full-year objectives of increased operating profits and a return on capital of 7 percent.

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