Aviation
AFKLM POSTS €792M PROFIT
February 21, 2017

Air France-KLM made a net profit of €792 million (US$835 million) in 2016, a 571% increase compared to 2015, according to annual results released by the company.

 

Self Photos / Files - AFKLM [2]

 

The airline group attributed the performance primarily to low fuel prices.

 

However, total revenue for the cargo business fell 14.7% year-on-year to €2.07 billion (US$2.18 billion). The group carried 1.13 million tonnes of cargo in 2016, a 6.2% decrease. The load factor also fell 1.1 percentage points to 59.3%.

 

The company said that it had continued to restructure the cargo unit to address weak global trade and industry overcapacity. The total available cargo capacity decreased 4.6% through a reduction in the number of full freighters. The operational fleet now stands at six, consisting of three Boeing 747-400ERFs, one 747-400BCF and two 777Fs.

 

Pressure on unit revenues will remain in 2017, with geopolitical and economic uncertainties, fuel prices and ongoing overcapacity, according to Air France-KLM.