Air France-KLM has produced full year results meeting their primary objective of operating income comfortably in profit at around 1 billion Euros.The results included record level of operating income, up 13.3% to 1.41 billion euros. A further rise was achieved in operating margin1 to 6.7% (+0.4 points) with RoCE of 7.1% (+0.6 points) and a dividend of 0.58 euros (+21%).
The Board of Directors of Air France-KLM convened under the chairmanship of Jean-Cyril
Spinetta to approve the accounts for the Financial Year 2007-08. During the meeting, Mr
Spinetta made the following comments:
“I must start by highlighting the excellent quality of our results, which met all our objectives. The
Financial Year 2007-08 nevertheless witnessed a deterioration in the economic environment
during the second half, linked to the crisis in the financial sector and the sharp rise in the oil
price. We also booked a provision of 530 million euros on the basis of the current status of the
investigation by the European and US competition authorities into the air cargo industry.” The
Chairman added: “The current year is set to be challenging, with the oil price and the global
economy creating significant uncertainty. We believe however that our strategic advantages and
the efficiency of our fuel hedging, combined with a tough stance on costs and further potential
synergies made possible by the new, more integrated organisation between Air France and
KLM, will ensure that we remain comfortably in profit. Under these conditions, and based on an
oil price of $120/bbl, our objective is of operating income in the region of 1 billion euros.”
In consequence, the Board of Directors voted to propose a dividend of 0.58 euros, up 21%.