Air France-KLM shares slump 6.0 pc
10 August 2007, PARIS (AFP) - Shares in Air France-KLM, the biggest European airline, fell more than 6.0 percent on Thursday after the group's first-quarter results disappointed investors.
10 August 2007
PARIS (AFP) - Shares in Air France-KLM, the biggest European airline, fell more than 6.0 percent on Thursday after the group's first-quarter results disappointed investors.
The company said first-quarter net earnings rose 70.1 percent over 12 months to EUR 415 million, but operating profit rose by a modest 1.0 percent to EUR 415 million.
The group also said it would be "attentive" to developments regarding loss-making Italian rival Alitalia and is open to contacts with the Italian carrier.
Air France-KLM said it did not have any more details about the planned sale of the group following the Italian government's decision to scrap a privatisation process.
"We remain attentive and if we are contacted we will listen," the company said in reference to press reports that Alitalia's new chairman is planning to meet potential buyers, including Air France-KLM.
Shares in the group closed down 6.26 percent on the Paris stock exchange at EUR 30.20.
A Paris-based dealer contended that the results and outlook for the company were broadly positive, arguing that the slide in the share price was more about profit-taking on a share that had risen strongly over the past year.
Group sales in the first quarter were EUR 5.9 billion, up 2.5 percent.
Air France-KLM's existing full-year outlook was for a further rise in operating income and a return on capital employed of 7 percent.
[Copyright AFP 2007]
Subject: Dutch news, French news