Thursday, 18 February 2016 - 08:54
Cheap oil ushers Air France-KLM into profit; 1st time in years
Airline Air France-KLM made its first profit in years in 2015, partly thanks to the low oil price and cheap euro. Last year the airline combination's net profit amounted to 118 million euros, compared to a loss of 225 million euros in 2014, NU reports. The airline also saw an improvement in their operational results, from -129 million euros in 2014 to 816 million euros in 2015. The company's turnover increased by 4.6 percent to 26.1 billion euros. Despite a number of factors counting against it, Air France-KLM still benefited from the low oil price. Factors included the fact that the price for kerosene - aircraft fuel - does not drop hand in hand with the crude oil price, the fact that the airline buys fuel well in advance to hedge against massive price increase and the high dollar. Still Air France-KLM saved almost 500 million euros on fuel last year, a 7 percent drop compared to 2014. In 2014 the airline combination suffered a major setback in the form of expensive pilot strikes. Last year's setback came in the form of terrorist attacks in Paris - on Charlie Hebdo in January and in several locations in the French capital on November 13th. These attacks resulted in 120 million euros in lost revenue for the airline, mostly due to tourists avoiding Paris after the attacks.