Air France KLM Profits Unveiled

Europe’s biggest airline Air France KLM has today unveiled a significant increase in profits over its second financial quarter, despite the impact of the rising cost of fuel to improve 100% on previous years’ performance.

The pan-European airline enjoyed an increase in net profits up almost 100% on last year to 735million euros for the second financial quarter, with revenue coming in at 5.8% higher at 6.5 billion euros. The results reflect a dramatic increase in profitability as a proportion of gross turnover, indicating growing cost efficiencies despite the rising fuel costs over the period.

Fuel costs have been sen soaring as a result of high oil prices, leaving many airlines forced to charge an excess on normal ticket prices to account for the increased operating costs. However this seems to have had very little effect on Air France KLM, after today’s profit reports.

However analysts have predicted oil prices to smash through $100 a barrel before the year is out, reflecting a continuing trend of rising costs within the travel industry, which could inevitably cause further problems for Air France KLM in managing their operative cost centres.

Air France KLM have today spoken as to their ‘robust’ growth over the period which has seen it increase passenger numbers and continue to provide the same level of service whilst cutting overall costs dramatically.

Speaking today on the results, Philippe Calavia said that the company’s unwavering passenger demand coupled with offsetting fuel surcharges would continue to aid financial performance over the coming quarter, despite the likely increase in fuel costs.

Having merged in 2004, the companies have enjoyed strong success in recent years, with revenues also buoyed by the capital disposal of their innovative ticket reservation technology earlier in the year.

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