Air France-KLM profit soars to stability

19th May 2011, Comments 0 comments

Air France-KLM has returned to profit. Europe’s largest airline posted a net profit of 613 million euros for the 2010-2011 financial year, compared to a 1.6-billion loss in the previous year.

The company’s turnover amounted to 23.6 billion euros, an increase of 12.5 percent on 2009-2010’s performance.

The first three months of 2011 – the final quarter of the financial year – showed disappointing results, with a loss of 367 million euros. The same period a year ago produced a loss of 691 million euros.

Air France-KLM announced the results early on Thursday. CEO Pierre-Henri Gourgeon said the last financial year was one of vacillation. The airline company benefited from the signs of economic recovery, but suffered as a result of major unsettling global events - such as the earthquake and tsunami in Japan, the revolutions sweeping the Middle East and North Africa, as well as high oil prices.

The French-Dutch concern said it was confident in its ability to improve operating income in the 2011-2012 financial year but was also committed to reducing its 85 per cent debt-to-equity ratio, prompting it to skip its dividend for the financial year to end-March.

© Radio Netherlands Worldwide


© Radio Netherlands Worldwide

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