Air France-KLM 'will make profit in 2004'

28th October 2004, Comments 0 comments

FRANKFURT, Oct 28 (AFP) - Air France-KLM expects to turn in a profit in its current business year, despite runaway fuel prices, KLM chairman Leo van Wijk said in a newspaper interview published Thursday.

FRANKFURT, Oct 28 (AFP) - Air France-KLM expects to turn in a profit in its current business year, despite runaway fuel prices, KLM chairman Leo van Wijk said in a newspaper interview published Thursday.   

Asked by the daily Die Welt whether Air France-KLM expected to make a profit in the business year to March 2005, despite high fuel costs, van Wijk replied: "Yes. We'll make a profit."  

When Air France-KLM published its first-quarter results at the beginning of September, the airline had said it was forecasting a "strong rise" in operating profit for the year as a whole on condition that oil prices remain at around 40 dollars per barrel.   

Oil prices closed at 52.46 dollars per barrel in New York on Wednesday after touching 56 dollars earlier this week.   

Van Wijk said the airline had hedged "relatively well" against rising oil and kerosene prices "and we're still purchasing at favourable prices."   

"Nevertheless, high fuel costs are still costing us hundreds of millions of euros (dollars) that can't be recouped on the market via surcharges. But we have a bigger buffer than many other airlines," van Wijk said.

 

© AFP

Subject: French News

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