Recovery slows at Air France-KLM
Despite unwelcoming market circumstances and heavy competition, Air France KLM has managed a light increase in turnover for the second quarter to €6.45 billion. Losses are also limited to €6 million.
According to Chairman of the Board Alexandre de Juniac, these accomplishments are mainly down to cuts and efficiency measures. For Air France KLM, the recovery is going slower than expected, which is reason enough to cut a further €100 million on its cargo fleet.
For AF KLM, the strong euro and weak local currency is a big burden. Exchange rate differences cost the airline €45 million in the first six months of the year.
According to De Juniac and KLM CEO Camiel Eurlings, cannot yet say whether the recent plane crash disasters have had an effect on their flights. De Juniac has expressed his condolences to the surviving families of the MH17 disaster, and Eurlings has spoken to victims' families. These crashes do not in any way diminish the general safety of air travel, the airlines bosses emphasize.
"The responsible aviation authorities declared that the route was safe", Eurlings says. "Almost all airlines flew over that area. This week it seemed that some countries changed flight routes, due to the war violence and the risks."
Shares in AF KLM are priced at a core profit of five percent on €9.04, which is better than stakeholders were told two weeks ago. when the airline warned shareholders that the aimed gross profit of €2.5 billion would not be reached this year. AF KLM said that it would look more like €2.2 or €2.3 billion.
The 33,000 employees of the airline may also breathe a sigh of relief when the plan for 2015-2020 is presented in September. When the profit warning was announced, unions feared a reorganization.