Air France-KLM sales climb

13 August 2004

AMSTERDAM — Europe’s largest airline Air France-KLM reported a 12.3 percent increase in first-quarter consolidated sales to EUR 4.46 billion on Friday.

Air France in the three months from April to June booked EUR 3.36 billion in turnover, up 11.8 percent on the same period a year earlier.

The Dutch flag carrier KLM was taken over by Air France in May. Its figures for June and July have been added to generate the quarterly figure for the combined company for the fiscal book year 2004-2005.

The combined company also makes a comparison with the 2003 when KLM and Air France were separate entities.

KLM contributed EUR 1.1 billion to the consolidated turnover, up 14.3 percent on the same period last year.

The combined airline transported 16.9 percent more passengers while the seat occupancy rate rose by 2.7 points to 77.7 percent. In 2003, the international airline industry was hit hard by the combined effect of the Sars epidemic and the US-led war with Iraq.

Air France-KLM said the new results incorporate the first positive effects of the merger, as from 1 June in addition to enhanced service between the two hubs, Air France’s Charles De Gaulle Airport in Paris and KLM’s Amsterdam Schiphol Airport.

KLM announced earlier this month that it would become the first international carrier to raise the price of its tickets. The fare increases will come into operation on 17 August.

Most airlines reduced and in some cases slashed their fares last year to try and win back passengers worried about Sars and terrorism.

Subject: Dutch news, Air France, KLM