Air France-KLM profits take off as fuel price drops
PARIS: Air France-KLM said Thursday its net profits quadrupled in the second quarter as fuel prices fell and it flew more passengers. The net profit of 649 million euros ($742 million) was in large part thanks to an 11 percent drop in its fuel bill. Group revenues rose by 6.2 percent to 8.4 billion euros as it carried 5.9 percent more passengers.
'Although the external environment remains complex, Air France-KLM continues to demonstrate its resilience and is well positioned to achieve its targets,' said chief executive Benjamin Smith.
However higher airport taxes at Amsterdam-Schiphol where KLM is based and an increase in the airline ticket tax in France are expected to weigh on annual operating results by as much as 170 million euros. Meanwhile, Air-France-KLM said it was dropping out of the running to acquire a majority stake in indebted Spanish carrier Air Europa. Earlier this month Air France-KLM moved to acquire a majority in SAS and it is interested in acquiring a stake in TAP Air Portugal.
Air France-KLM's shares rose 4.8 percent in midday trading while the Paris CAC 40 index was down less than 0.1 percent. — AFP
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