Air France-KLM profits hit hard by rising fuel costs

airplane wingAir France-KLM have announced an increase in its operating profits for the second quarter, despite rising fuel prices affecting the final financials, according to the Franco-Dutch airline.

The international airline saw its income rise 15.6% to £367m for the second quarter of this year. Revenues also increased to a total of £7.05bn.

However, both totals were impacted by an increased fuel bill of over £201m.

Benjamin Smith, CEO of Air France-KLM Group, said: “In a challenging environment, Air France-KLM Group posted a robust second quarter. The slight increase in passenger unit revenue that we had anticipated, together with continued execution in unit cost reduction, enabled us to more than offset rising fuel costs.

“These elements, combined with satisfactory long-haul forward booking trends lead us to confirm our guidance for 2019. At the same time, we continue to implement our strategic vision focused on reducing costs and making our Group more robust in the very competitive marketplace in Europe.

“We have also made key decisions on the renewal of our fleet to transition to cleaner aircraft in order to support a more environmentally responsible operation, including the order of sixty Airbus A220s for short- and medium-haul and the accelerated phasing out of ten Airbus A380 to be replaced by more modern fuel-efficient aircraft.”