EUROPE & CIS: Air France-KLM back in black

The Air France-KLM Group reported a profit of €1.03 billion (US$1.39 billion) for the first six months of its financial year ending 30 September 2010 compared to a loss of €573 million for the same period last year. Net profit for the full year is forecast to be over €300 million. Total cargo revenue for […]


The Air France-KLM Group reported a profit of €1.03 billion (US$1.39 billion) for the first six months of its financial year ending 30 September 2010 compared to a loss of €573 million for the same period last year. Net profit for the full year is forecast to be over €300 million. Total cargo revenue for the six month period rose 39.9 per cent to €1.56 billion year-on-year to produce an operating income of €18 million compared to a loss of €344 million in 2009. Commenting on the first half results, CEO Pierre-Henri Gourgeon said: “In the context of a more favourable economic environment, all the strategic actions we have undertaken over the past year have enabled us to return to profit. The second quarter is especially satisfying and, despite the disruption in April, we improved our operating result by some one billion euros in the first half.” The airline group posted an additional €127 million provision following the unexpectedly high cargo fine imposed on it this month by the European Commission. The company said it considered the fine “disproportionate” and would appeal the decision. “The economic analysis produced within the context of the procedure demonstrated that the actions in question had no detrimental effect on the freight shippers nor the freight forwarders. Moreover, the level of the fines disregards the economic hardship that the air cargo industry has suffered,” it stated.