KLM flies back into the black

6 May 2004

AMSTERDAM — Dutch flag carrier KLM reported its first full year profit in three years on Thursday. The news comes after it was confirmed this week that the airline will be taken over by Air France.

KLM posted a EUR 24 million net profit in the last 12 months compared with a EUR 416 million loss the previous year.

The airline has pursued a vigorous pruning programme to get its accounts back in the black and it said it has met its cost-cutting target of EUR 200 million in savings for 2003-2004.

KLM’s chief executive Leo de Wijk said the main drivers for the net profit were a better than expected improvement of the airline’s fourth quarter operating income, as well as a significant improvement of KLM’s passenger business.

The figures for the 2003-2004 financial year will be the last set of results issued by KLM as a separate company after Air France’s takeover, news agency Reuters said.

Reuters added that KLM and Air France plan to continue cutting costs to achieve EUR 400 million in annual synergy savings within five years.

The Air France-KLM deal will create Europe’s largest airline and the world’s third-biggest airline in terms of sales.

Subject: Dutch news