Air France-KLM profit close to $1b in first quarter
Air France-KLM swung into a net profit of US$996.8 million in the first quarter of its financial year ending March 31, 2011 from a loss of $576.95 million in the same period a year earlier, due to recovering cargo and passenger traffic and despite the financial impact of the Icelandic volcanic ash cloud in April, reported Dow Jones Newswires.
The first-quarter net profit, which runs to the end of June, was also helped by a $1.35 billion gain from an initial public offering for the Amadeus reservation system.
Revenue in the first three months rose by 11 percent to $7.74 billion, and the airline posted an operating loss of $178.77 million in the three months to June 30, down from a loss of $671.75 million a year before.
The year-ago figures were affected by the steep drop in freight and passenger traffic due to the slump in economic activity. Like other airlines with extensive European operations, Air France was affected by the closure of air space over much of Europe in April due to an ash cloud from an Icelandic volcano, and the airline estimated this had a negative impact of $213.98 million.