AMSTELVEEN, THE NETHERLANDS, JULY 25, 2002 - KLM today reports an operating profit of EUR 41 million for the First Quarter of Fiscal Year 2002/03, ending June 30, 2002, compared to an operating profit of EUR 23 million last year. Net income for the First Quarter amounts to EUR 11 million or EUR 0.23 per common share. This compares to a net income of EUR 19 million or EUR 0.39 per common share for the same period last year. Last yearå‘s net income benefited from one-off gains of EUR 26 million after tax relating to the sale of part of KLMå‘s shares in Equant and the sale of three aircraft.
Against a background of continuously challenging market conditions and an adverse economic climate, KLM has succeeded in almost doubling its operating income. In the First Quarter KLM remained prudent in adding back capacity, and only gradually increased its capacity for the summer season, whereas last year total additional summer season capacity was already implemented at the start of the summer schedule.
Though traffic demand remained soft, KLM succeeded in keeping capacity levels aligned with traffic levels and managed to improve load factors in all route areas, except for Central and South Atlantic. As yields also improved, it reflects an overall improvement of the quality of KLM’s revenues.
At the same time, KLM further strengthened its position as the highest ranked amongst the major hub-and-spoke carriers in Europe with respect to arrival punctuality, which reached a level of ninety percent in the First Quarter.
Says Leo van Wijk, President and CEO of KLM: ‘Our decision to only gradually add back capacity has proven valuable. In combination with effective revenue management, we succeeded in improving our load factors and yields. This is a robust performance in an industry, where traffic demand remains considerably below last year’s levels. Our First Quarter results demonstrate our ability to anticipate and respond to changing market conditions.’