AIR FRANCE has published encouraging second quarter results with pre-tax profits nearly doubling to E141m although a E57m tax charge will cut into these figures. AF is losing customers to the new high speed rail link from Paris to Marseilles and generally not doing well domestically with sales down 10%. On the long haul international routes business is brisk. The airline does not seemed bothered with the possibility of a low fare start-up at Paris Orly. It says that fares are being forced down by new competitors in any event. The airline has also announced a cross-shareholding deal with Alitalia under which the airlines will buy 2% in each other in the share market.
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