Air France Quarterly Profit Inches Up
Air France-KLM (EPA:AF) posted its third-quarter net profit results today, 31 October 2012. The Franco-Dutch airline reported a year-on year increase in Q3 earnings, with group share rising to €306 million (£246 million), or €0.85 per share, from €14 million (£11.2 million), or €0.05 per share in the third quarter of 2011.
After a favourable currency effect of 4.5 per cent, Air France’s total revenues were up 5.8 per cent to €7.18 billion (£5.78 billion), compared to €6.79 (£5.47 billion) in the same period last year. Unit revenues in equivalent available seat kilometres rose by 5.7 per cent. Passenger traffic in the third quarter also inched up by 0.9 per cent to 62.1 billion revenue pax-kilometers for a rise in capacity limited to 1.0 per cent and a high load factor of 86 per cent.
**Cost Control Measures Having an Impact**
!m(/uploads/story/678/thumbs/pic1_inline.png)Operating costs for the three-month period ending September 30 were up 4.5 per cent, totalling €6.68 billion (£5.38 billion). According to Air France’s report, however, the costs actually fell 1.1 per cent on a comparable currency basis, due to an impact of strict cost control measures implemented in the group’s corporate transformation plan, “Transform 2015”, which the company created in an attempt to regain competitiveness and ensure its products and customer services are in a leading position worldwide.
Along with its third-quarter results, today, Air France announced that it is keeping to its second-half outlook. The airline remains positive that on 31 December 2012 it will provide operating results above last year’s level and a reduction in net debt.