9 August 2007

AMSTERDAM (dpa) - Air France-KLM announced on Thursday its operating income increased by 1 percent to EUR 415 million in the first quarter of its fiscal year 2007-2008.

Most of the growth resulted from an increase in passenger traffic. Its cargo division recorded an operational loss.

Company results were slightly below analysts' expectations. Net income, including non-current income worth EUR 122 million, amounted to EUR 415 million.

This is an increase of more than 70 percent compared with the same period in the previous fiscal year and more than predicted by analysts.

Air France-KLM revenue grew by 2.5 percent to EUR 5.945 billion. This included the negative currency impact of 2.5 percent as measured in equivalent available seat kilometres.

Passenger traffic contributed some EUR 4.762 billion - 3.2 percent more than during the same period in 2006 - to this amount.

Operational income from passenger traffic increased by 9.1 percent to EUR 396 million. The group carried 19.3 million passengers, a 1.4 percent increase.

Total passenger revenue rose with 3.2 per cent to EUR 4.76 billion, despite a negative currency impact of 2.6 percent.

Although pressure on unit revenues continued, the cargo division saw a 1-percent increase in the load factor.

The group carried a total of 317,000 tonnes, a 2.5-percent increase compared with the same period last year. Total revenues for the cargo division amounted to EUR 642 million, a decrease of 4.8 percent.

The cargo division recorded an operating loss of EUR 17 million, compared with income of EUR 28 million in the first quarter of the previous year.

[Copyright DPA 2007]

Subject: Dutch news, French news