KLM driving force behind Air France-KLM soaring profits
Air France-KLM booked a profit of 367 million euros in the last quarter, about nine times higher than the 41 million euros of profit made in the second quarter of 2016. Revenues increased by over 6 percent. The Dutch branch of the airline combination was the driving force behind the profit and revenue increases, NOS reports.
The French-Dutch airline can mainly attribute the growing profits and revenues to a sharp increase in passenger numbers. In April, May and June, 26 million people traveled with Air France-KLM, 7.5 percent more than a year before.
Surprisingly, higher ticket prices also played a role. Last quarter ticket prices were 2 percent higher than the second quarter of 2016. That is surprising because airline prices have been pressured by budget competitors like Ryanair and EasyJet for years.
KLM made a significant contribution to the airline combination's good second quarter. According to KLM CEO Pieter Elbers, KLM saw 10 percent more passengers and profited from implemented cost reductions. Air France was less successful in implementing cost reductions, due to resistance from French unions. Air France is launching a new subsidiary Joon, in an effort to boost its profits.
On Thursday nigh Air France-KLM announced that it is taking a significant share in British company Virgin Atlantic. The airline combination is also teaming up with American Delta and China Eastern. All these new partnership deals are to offer more destinations to Air France-KLM travelers.