The Air France-KLM group announced unexpectedly high earnings before tax and amortisation of goodwill of 289m for the second quarter of 2004-5 compared with 210m for the same period in 2003.
The group, formed after the takeover of KLM by the French carrier last May, also announced an operating income, before the disposal of aircraft, of 295m compared with 219m for the same 2003 period.
For the first half of the 2004-5 financial year; AF-KLM said its earnings before tax and amortisation was 384m compared to 213m in 2003 and its operating income before aircraft disposal was 451m compared to a 2003 figure of 218m.
The airline, now the largest in Europe, described the results as a “very strong performance.”
AF-KLM's rise in profits follow similar good result from BA and Lufthansa, its two main European rivals.
Jean-Cyril Spinetta, chairman of the group said: “In an extremely difficult environment because of fuel prices, the results for this first half are very encouraging and demonstrate the value of the Air France-KLM merger.”
His deputy, Leo van Wijk added: “The synergies generated with the two networks and the facilities given to our customers to combine travel on both carriers allowed the group to grow its market share while controlling its costs. Air France-KLM is continuing its strategy of profitable growth.”
The group said that it saved 90m on fuel costs for the second quarter of the year, about 13% of its bill, by hedging but fuel costs had still risen by 32.8% to 704 m compared with 530m at September, 2003
The group said this was the principal changed in its outgoings as staff costs had remained largely the same.