Strikes, fuel prices pressure Air France-KLM results
Air France-KLM's financial results for the second quarter were severely pressured by strikes at Air France, as well as a higher fuel bill. Despite this the French-Dutch airline combination's operating profit was considerably higher than analysts had anticipated, NU.nl reports.
In the second quarter Air France-KLM's turnover stabilized at 6.6 billion euros. The airlines made a profit of 109 million euros. The airlines attribute the better-than-expected results to cost saving measures and an increase in the number of passengers, especially in the so-called premium segment. The total number of passengers increased by 0.8 percent to 26 million in the second quarter. Strikes at Air France had a negative impact of 260 million euros on Air France-KLM's operating profit in the second quarter.
The Dutch branch again performed better than its French counterpart. KLM saw its turnover increase by 4.9 percent to 5.2 billion euros. The gross profit came out at 916 million euros, and the operating result rose to 388 million euros.The Dutch airline's operating margin decreased slightly to 7.5 percent
Air France saw its results drop. Turnover decreased by 1.4 percent to 7.5 billion euros, and gross profit decreased to 744 million euros. The French airline suffered an operating loss of 164 million euros. This resulted in a negative margin of 2.2 percent.
