AIR FRANCE-KLM Group, Europe’s biggest airline, surged the most since its formation more than eight years ago as the introduction of a €2 billion ($2.5 billion) savings plan helped halve its second-quarter loss.
Air France’s operating loss narrowed to €66 million from €145 million a year earlier, beating the €163 million average estimate of analysts in a Bloomberg poll.
Air France-KLM closed almost 73 cent or 19 per cent higher at €4.62 in Paris, where the company is based, the sharpest gain since the group was founded via a Franco-Dutch merger in May 2004. That boosted the stock’s advance this year to 16 per cent, giving a market value of €1.39 billion. Air France-KLM said last month it would eliminate more than 5,000 jobs at its French unit as ceo Jean-Cyril Spinetta seeks the savings he says are needed to guarantee survival.
The quarterly results show how crucial the Transform 2015 turnaround plan is, he said today. The carrier posted a restructuring charge of €368 million against buyout packages related to the job cuts, extending its second-quarter net loss to €895 million from €197 million. – (Bloomberg)