Air France-KLM profits soar

23rd November 2005, Comments 0 comments

23 November 2005, AMSTERDAM — The Air France-KLM Group increased its full-year earnings forecast on Wednesday as it announced a tripling of fiscal second-quarter operating profit.

23 November 2005

AMSTERDAM — The Air France-KLM Group increased its full-year earnings forecast on Wednesday as it announced a tripling of fiscal second-quarter operating profit.

Europe's largest airline — formed from the merger last year of the national airlines of France and the Netherlands — said the impressive rise in profits was driven by demand for overseas flights and EUR 419 million from the sale of a stake in travel reservation company Amadeus.

Chief Operating Officer Pierre-Henri Gourgeon said during a briefing in Paris that net income rose to EUR 717 million in the quarter ending on 30 September from EUR 195 million.

Earnings before interest and tax climbed more than 50 percent for the full year, Gourgeon said.

Air France, which took over KLM, has managed to boost traffic more than competitors by using bases at Paris' Charles de Gaulle and Amsterdam's Schiphol airports to pull passengers from throughout Europe for international flights, financial site Bloomberg said.

"Demand for air travel is relatively good and Air France-KLM is progressing better than the average because of the merger," said Gourgeon. "We have a lot of commercial strength and a lot of synergies."

[Copyright Expatica News 2005]

Subject: Dutch news + French news

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