Air France profits down 95.2%

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Air France profits down 95.2%

Friday, November 11th, 2011

11 November 2011
Air France profits down 95.2%
News reports state that Air France KLM Group reported a net profit of €14 million ($19.2 million) for the quarter ended Sept. 30, down 95.2% from net income of €290 million in the year-ago quarter, due mainly to foreign exchange losses and a decline in the fair value of hedging instruments.

Chairman and CEO Jean-Cyril Spinetta said the group’s “insufficient profitability in recent quarters, in an economic environment affected by the weak global demand and high oil prices, shows that we need to go further” despite the “many measures” pursued over the last three years.

AF KLM last month announced a shakeup of its top management, which included the return of Spinetta as group CEO and AF CEO. Spinetta said the new management will focus on three priorities: a “rapid” reduction of the company’s €6.5 billion net debt, additional cost savings, and the restructuring of its short- and medium-haul business. He declined to go into detail and said an action plan will be presented during the first quarter of 2012.