Robust traffic and filling more seats on its planes helped Air France-KLM switch into profit in the first half of this year, the airline said Friday, a day after it announced alliances to strengthen its position in North America and Asia. A capital increase announced Thursday will bring the US airline Delta and China Eastern into its shareholders. Meanwhile Air France-KLM took a minority stake in Britain's Virgin Atlantic, joining Delta.
Chief executive Jean-Marc Janaillac said he was "very pleased with the strengthening of our network of alliances". "Our North-Atlantic alliance with Delta and the Delta and Virgin Atlantic joint venture, and the reinforcement of our partnership with China Eastern, position Air France-KLM as the European pillar of the leading global airline network," he said.
A 6.5 percent increase in passengers helped AirFrance-KLM lift earnings to a net profit of 151 million euros ($177 million), after having turned in a loss in the first half of last year. Finance director Frederic Gagey said the outlook was good for the second half of the year as "reservations for the months of July, August, September and October are above those from last year." The announcements gave wings to AirFrance-KLM's share price, which climbed more than 3 percent at one point in morning trading before profit-taking set in, while the overall Paris market was down nearly one percent.