[031118.EN.AIR] AF-KLM Quarterly Profit Up 7.7pc to US$1.2 Billion as Sales Rise 4pc

AIR FRANCE-KLM's third quarter operating profit increased 7.7 per cent to EUR1.06 billion (US$1.2 billion), drawn on revenues of EUR7.5 billion, up four per cent year on year.

"Air France-KLM posted a solid performance in the summer quarter, reflecting the commitment of all its staff, its commercial strengths and the attractiveness of its brands," said its new CEO Ben Smith, the former passenger chief at Air Canada.

"The agreement on salaries signed at Air France brings stability as well as new perspectives for our businesses and employees. I am confident that we will be able to leverage our group's strengths and assets to build an ambitious and innovative strategy to ensure the success," Mr Smith said.

While the demand outlook remains positive, the company cautioned that the global context remains uncertain given the current geopolitical environment and rising fuel price trends.

Cargo capacity rose 1.6 per cent year on year within a buoyant demand environment particularly in Asia and North America. Despite some difficult local market circumstances, Latin America also performed well, said the company.

Revenue management steering generated higher yields in both full freighters and bellies, resulting in an unit revenue increase by 6.7 per cent in the quarter.

The new digital customer platform is proving successful and contributing to sales growth, with an increase in the direct sales channel. Electronic Air Way Bill (E-AWB) usage by our customers rose to a level of 73 per cent in the third quarter.

As to the official outlook, the company said: "The global context remains uncertain given the current geopolitical environment and rising fuel price trends."

Source : HKSG.