Air France-KLM reports increase in operating profit and raises full-year guidance

Airline Industry Information, Sept 2, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Air France-KLM has reported a decrease in first-quarter net profit, while its operating profit increased by 27%.

The airline saw a decrease of net profit to EUR112m from EUR536m in 2004, when the earnings were boosted by a one-time gain. Noting that the operating profit was boosted by strong passenger traffic, Air France-KLM also raised its earnings guidance for the full year.

According to the report, the operating profit for Q1, ending 30 June, increased to EUR223m from EUR175m a year ago, while revenue rose 5.5% to EUR5.19bn with passenger traffic increasing 6.5%.

The airline also said that it has been well protected from increases in prices on oil and derived products by hedging contracts, The Associated Press reported.

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