Air France Reports Second Quarter Profit

Even in a highly unstable market, some foreign airlines continue to report profits. Air France-KLM reported second quarter revenues of 6.69 billion euros, up 3.2 percent; operating income of 405 million euros, despite a 35 percent rise in fuel costs; and net income of 244 million euros.

Results for the first half included a 4.4 percent increase in revenues to 12.98 billion euros, operating income of 639 million euros, net income of 385 million euros and free cash flow of 173 million euros.

Traffic was positive and unit revenues resilient. The company recorded revenue growth of over 4 percent despite the appreciation of the euro relative to other currencies. The rise in oil prices was partly offset by our hedging measures, but nevertheless added almost 700 million euros to our fuel bill, which amounted to some 3 billion euros.

In spite of these headwinds, the group generated operating income of 639 million euros in the first half and 405 million euros in the second quarter, the highest among our European peers both in terms of results and margins.