Paris. Air France-KLM said yesterday profits rose sharply in 2016, but issued a cautious outlook for the current year in the face of global uncertainty and aggressive competition in the sector.
The French-Dutch airline said in a statement that its bottom-line net profit soared to €792 million ($840 million) last year, up from €118 million in 2016.
The headline figure was boosted by one-off gains from the sale of a 49.9-percent stake in the onboard catering arm Servair to Switzerland’s Gategroup.
Underlying or operating profit grew by 34 per cent to 1.05 billion euros as passenger numbers were up 4.0 percent at 93.4 million.
However, revenues declined by 3.3 per cent to 24.8 billion euros, the statement said. “While the fall in the oil price significantly reduced the group’s costs, the geopolitical context, competition and industry overcapacity all resulted in lower unit revenues,” chief executive Jean-Marc Janaillac explained.
The airline said lower oil prices cut its fuel bill by nearly 26 per cent in 2016. The French business, Air France, booked a decline in operating profit, while the Dutch arm, KLM, saw underlying earnings rise. (AFP)