Recently merged Franco-Dutch airline Air France-KLM doubled its net profit in the first quarter as it bounced back from year-ago levels damaged by strikes, the Sars virus, and the war in Iraq.
The world's largest airline by revenues posted profits short of analysts' forecasts due to the impact of high oil prices, but it confirmed a key target for a substantial rise in full-year operating profit before aircraft sales.
Air France unveiled its €800 million takeover of KLM a year ago, but the cross-border acquisition, the first of its kind in the airline industry, was only finalised in May.
That meant just two months of KLM results were included in the first-quarter figures.
The company, which runs under both the Air France and KLM brands, confirmed its target for a substantial rise in operating income before aircraft disposals, based on an average market price of $40 per barrel for the rest of the 2004-05 fiscal year.
Each $1 change in oil prices would have a $5 million impact on operating income per month, the company said.
Operating profit before aircraft sales rose to €156 million in the April to June quarter versus a pro-forma loss of €1 million last year.