Merged airline forecasts growth in 2005
Newly merged Air France-KLM expect to see substantial increases in operating profit for the current financial year according to the group's chairman and chief executive Jean-Cyril Spinetta.
Forward bookings were excellent over the June to August summer months, as both airlines posted a strong recovery in operations after last year's decreases.
Spinetta said the group's results last year had been overshadowed by a difficult economic climate compounded by the SARS crisis in Asia at the start of the year and severe air traffic control disruption.
Yesterday, the group announced a €3 surcharge per flight leg on passenger fares in response to the surge in oil prices.
The passenger fare surcharge would be removed, when the price of Brent crude oil fell below $30 for 30 days in succession, the company announced.
Previous cost-cutting programmes since 1998 had helped to make Air France one of the few airlines that remained profitable throughout the recession in the global aviation industry during the past three years.
The rationalisation of both Air France's and KLM's networks, the creation of a European cargo house and the in-sourcing of some sub-contracted maintenance is expected to lower the merged airline's cost base.
