Air France earn­ings fall

Irish Independent - Business Week - - FRONT PAGE -

AIR France-KLM CEO Ben Smith has pledged to pur­sue an “am­bi­tious and in­no­va­tive” strat­egy af­ter the car­rier posted lower earn­ings in its first set of results un­der his lead­er­ship.

The group re­ported an op­er­at­ing profit of €1.07bn, 6.7pc lower than last year, ac­cord­ing to its third quar­ter results re­leased yes­ter­day.

Dur­ing the pe­riod its unit costs re­duced 1pc in con­stant cur­rency. Net debt at the air­line re­duced by €222m to €6.3bn in the nine months since 31 De­cem­ber 2017. The net debt-toearn­ings be­fore in­ter­est, tax­a­tion, de­pre­ci­a­tion and amor­ti­sa­tion ra­tio re­mained sta­ble at 1.4 times.

“Air France-KLM posted a solid per­for­mance in the sum­mer quar­ter

2018, re­flect­ing the com­mit­ment of all its staff, its com­mer­cial strengths and the at­trac­tive­ness of its brands,” Mr Smith said. “I am con­fi­dent that we will be able to lever­age our group’s strengths and as­sets to build an am­bi­tious and in­no­va­tive strat­egy to en­sure the suc­cess of our air­lines and re­po­si­tion Air France-KLM as the leader of our in­dus­try.”

The air­line said that it its pas­sen­ger net­work rev­enues to in­crease in the fourth quar­ter of 2018, with long­haul forward book­ing load fac­tors ahead of last year.

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