Air France-KLM, has lifted its earnings outlook for the year after its quarterly profit more than doubled due to greater demand for international flights and higher fares. The results sent shares briefly to a five-year high in European morning trading.
Profits for Europe’‘s largest air carrier for the period ending June 30 stood at 244 million euros (313 million dollars), up nearly 118 per cent over the first quarter of 2005.
Air France-KLM said in a press statement. Turnover rose by a more modest 11.9 percent for the first quarter, to 5.8 billion euros.
However, earnings on current activities jumped by 84.3 per cent over last year, to 411 million euros.
The upbeat results came despite the soaring cost of crude oil,which put the carrier’‘s fuel bill for the quarter at 1 billion euros, or 201 million euros more than for the first quarter of 2005, a riseof nearly 25 per cent.
However, passenger traffic was up 7.7 per cent, with the carrier’‘splanes filled to 81.5 per cent of capacity, up 2 points over lastyear.Investors welcomed the results, bidding up Air France-KLM sharesby 2.17 per cent, to 21.15 euros.
Air France-KLM has also been nominated at this year’s World Travel Awards in the category of Europe’s Leading Airline.