Air France-KLM posts Q1 net income rise of 70pc

Air France-KLM's first quarter results for the period ended June 30 shows that net income rose 70 per cent over the same period last year to EUR415 million (US$562.87 million).

During the reporting period, operating income rose by one per cent year on year to EUR415 million.

Revenue grew by 2.5 per cent to EUR5.95 billion, while operating costs rose by 2.6 per cent to EUR5.53 billion, or by 1.3 per cent year on year, excluding fuel. The fuel bill rose by 8.3 per cent to EUR1.09 billion.

A statement from the airline said that as expected first quarter earnings were impacted by adverse calendar effects in May. Cargo activity continued to suffer from weak unit revenues, while the passenger side of the business recorded strong levels of activity in April and June, which led to an increase in profitability.

The airline's cargo division saw a one point increase in load factor due to the improvement recorded in June, but the pressure on unit revenues remained strong during the quarter. The group carried 371,000 tonnes of cargo, up 2.5 per cent over the same quarter last year.

Total revenue from the European carrier's cargo business amounted to EUR689 million, down 5.5 per cent after a negative currency impact of 3.5 per cent. The business recorded an operating loss of EUR17 million versus an income of EUR28 million a year earlier.