Cargo surge helps push AF-KLM into black

Franco-Dutch airline Air France-KLM swung back to profitability in the three months through September 30, fuelled by a recovery in revenue from passenger and cargo operations after the depressed levels of a year earlier.

Second-quarter net profit came in at US$391.2 million, compared with a loss of $199.35 million in the year-earlier period. Revenue surged 19 percent in the quarter to $9.02 billion from $7.61 billion, reported The Wall Street Journal.

Operating profit came in at $781.12 million, after a loss of $63.74 million a year earlier.

The second-quarter yield on cargo operations surged 34 percent from the very depressed year-ago level, and cargo revenue was 38 percent higher at $1.06 billion. The segment contributed an operating profit for the second straight quarter of $9.49 million, compared with a year-ago loss of $199.35 million.

Peter Hartman, president and chief executive officer of KLM, said cargo operations are expected to be profitable for the full year. "We are more than pleased with our cargo performance" in the quarter, Hartman said.

The company said it had managed to improve the yield of its passenger operations in terms of revenue per available seat kilometre by 19 percent in the quarter.

Air France-KLM also said it has decided to postpone the replacement of 13 aircraft as part of its efforts to contain costs. Nine of the aircraft destined for Air France and four for KLM will now be delivered in 2016, chief executive Pierre-Henri Gourgeon said. He didn't spell out what types of aircraft aren't being replaced.

Deliveries of the aircraft were originally expected in the next two to three years, according to the carrier.

Air France-KLM has set a target of reducing its investments by $542.45 million through 2012 and plans to develop its fleets of highly efficient aircraft such as the double-decker Airbus A380 and Boeing 777 on high-density routes.

Gourgeon also said Air France-KLM is discussing with airframe builders Airbus and Boeing Co. possible "significant" orders for their future wide-bodied A350 and 787 Dreamliner aircraft, and is reviewing the advantages and disadvantages of integrating them into its fleet.
(Source:www.cargonewsasia.com)