Franco-Dutch airline Air France KLM said today its first-quarter net profit was down 59.4 per cent, hit by high fuel prices and an economic slowdown.
The world's largest airline by passenger numbers said net profit fell to €168 million.
Operating profit fell to €234 million from €415 million in the same period of 2007, while the analysts' average forecast was for €231 million. First-quarter sales were up 5.8 per cent at €6.28 billion.
Air France-KLM's already reported passenger traffic rose 2.6 per cent in June. The group said that "in response to the new economic environment", it would reinforce its 'Challenge 10' plan with an additional €190 million in cost-savings.
This would take the total for the financial year 2008-09 to €620 million.
Air France-KLM will adjust its capacity plans, with a rise of the order of 2 per cent for the Winter 2008 and Summer 2009 seasons.
On the basis of a forward price of oil of $126.82 at 25th July 2008 and a euro/dollar exchange rate of $1.56, the fuel bill for the full year is estimated at €5.86 billion.
Air France-KLM confirmed that its first-quarter results were in line with its objective of achieving operating income in the order of €1 billion for the full year.