Air Transport World

Air France-Klm Group: results)

Skeptics of Europe's first cross-border merger between two flag carriers and their concept of "one group, two airlines, three businesses" were proved wrong as Air France-KLM Group reported net income of [euro]913 million ($1.17 billion) for the financial year ended March 31. This represented a 29% increase over [euro]706 million earned in FY05, its first year as a merged company. Full-year operating revenues rose 10% to [euro]21.45 billion--pushing AF-KLM past Lufthansa Group as the world's largest airline company. Operating profits soared 69% to [euro]936 million and operating margin improved from nearly 3% to 4.4%.


"The synergies generated by the merger, combined with our ongoing cost-control measures, have not only enabled us to attenuate the impact of the rise in fuel prices but also to improve our margins significantly," Chairman and CEO Jean-Cyril Spinetta noted. …

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