Air France-KLM doubles profits

Europe's biggest airline Air France-KLM said on August 31 that it had doubled its net profit in the first quarter of its financial year but poured cold water on rumours that it was preparing to rescue struggling Italian rival Alitalia.
The French-Dutch company reported net profit of 244 million euros (314 million dollars) for the three months to the end of June from 112 million in the equivalent period of last year. President and chief operating officer Pierre-Henri Gourgeon did not rule out a tie-up with Alitalia but said the privatisation and restructuring of the near-bankrupt Italian group would have to take place first.
"We are waiting patiently for the restructuring of Alitalia. For the moment, Alitalia is focused on its restructuring plan. The economic result is not foreseeable," he said.
Gourgeon denied a report published in the French newspaper Le Parisian on August 18 that had suggested the French government was considering a deal under which Air France-KLM would help save Alitalia.
In return, the Italian government would pledge that Italian energy group Enel would drop its take-over ambitions concerning French utility group Suez.
"There is no politico-economic scheme to mix electricity, gas and air transport and France and Italy. It's an invention, pure and simple," said Gourgeon.
Gourgeon also said that Air France expected compensation from European aircraft maker Airbus because of delays to deliveries of the A380 superjumbo jets which the French airline has ordered.
Air France-KLM had been expecting the first deliveries of the 10 A380s it has ordered by the middle of 2008, but Airbus has warned that it is running six to seven months behind schedule.
In its first-quarter results, the Air France-KLM figures revealed an increase in sales and led to higher forecasts for full-year operating earnings.
Sales rose by 11.9 percent to 5.80 billion euros owing to "excellent activity levels with strong growth in unit revenues in both passenger and cargo".
The group raised its outlook for full-year operating income.
In May, the outlook had been for a full-year operating income "of at least the same level" as the 936 million euros achieved in the financial year 2005-06.
Operating income in the first quarter improved to 411 million euros (528 million dollars) from 223 million.