Air France-KLM profits up amid high traffic, cost cuts
Air France-KLM has announced a jump in profits as it expands its global alliances and readies to launch a new budget airline.
While the carrier appears to be coming out of a protracted slump, it warned Friday that the forecast remains “highly uncertain” because of volatile fuel prices and geopolitical risks.
Air France-KLM reported second-quarter profit of 367 million euros compared with 41 million euros in the same period last year, helped by higher traffic, lower fuel prices, job cuts and other restructuring efforts.
Sales were up 6.3 percent to 6.6 billion euros.
A key part of Air France- KLM’s turnaround strategy is upcoming low-cost airline Joon. The airline is also building new alliances, notably a deal announced Thursday to buy Richard Branson’s stake in Virgin Atlantic and sell stakes to Delta and China Eastern. AP
