Air France-KLM sees profits take-off

[marcogiov]

Air France-KLM sees profits take-off

By Kevin Done, Aerospace Correspondent
Financial Times
Published: September 2 2004 08.09 | Last updated: September 2 2004 14.42

Air France-KLM, the leading European airline, said on Thursday that it expected “a substantial rise” in operating profits this year despite the sharp increase in the price of oil.
The surge in the cost of jet fuel is expected to plunge the global airline industry into a fourth successive year of losses.
Air France confirmed its previous forecast for higher profits, however, for the current financial year to the end of March 2005 even at an average market price of $40 per barrel for the remainder of the period.
It said that any change of $1 in the oil price would have an estimated impact of $5m a month on profits.
Air France recently followed the British Airways lead in Europe by increasing its fuel surcharge on passenger fares.
It has added an extra €2 per flight leg to fares on domestic services, €3 on medium-haul services in Europe and North Africa, and €12 per flight leg on long-haul routes.
It said that the increase would be dropped as soon as the crude oil price returns to below $35 for more than over 30 consecutive days.
In May it introduced an initial surcharge of €3 per leg for all flights and said this would be dropped as soon as the IPE Brent crude price returned to €30 for 30 consecutive days.
The airline became the market leader in Europe at the beginning of May following Air France's takeover of KLM, the Dutch flag carrier.
It said that the present quarter from July to September, traditionally the most profitable of the year, had started with “a satisfactory level of activity bolstered by the advanced bookings for the next few months.”
Air France-KLM on Thursday presented its first consolidated results since the merger of the two airlines. Its first quarter from April to June included three months for Air France and two months for KLM.
On a pro forma comparison net income more than doubled to €95m ($116m) from €46m a year ago, when the airline industry was suffering from the combined impact on demand for air travel of the war in Iraq and the Sars outbreak.
Turnover rose by 12.3 per cent to €4.46bn, while operating profits before aircraft disposals increased to €156m from a loss of €1m a year ago.
The group reported “a strong recovery” in passenger activity both in terms of traffic volumes and revenues.
Consolidated traffic volumes increased by 16.9 per cent with a 12.9 per cent increase in capacity, which resulted in an improvement of 2.7 percentage points in the load factor, a measure of seat occupancy, to 77.7 per cent.
Jean-Cyril Spinetta, Air France-KLM chief executive, said the group had achieved good results, despite the sharp rise in oil prices, thanks to the “immediate implementation” of measures to gain synergies from the merger and tough cost controls.
The KLM operating unit had increased unit revenues and load factors thanks to greater access to the French market.
Mr Spinetta said that in the first quarter the combined group saw “sustained growth in a business environment that, although improving, remains difficult”.
Fuel hedging contracts had generated savings of €59m, or 13 per cent of the total fuel charge, in the first quarter.
Air France is pushing ahead with the expansion of its SkyTeam global airline alliance, which has recently signed an agreement with China Southern Airlines, the largest carrier in China.
Under the agreement China Southern is starting exclusive discussions to become a part of the rapidly expanding SkyTeam grouping, which will shortly be joined by KLM and its US partners Northwest Airlines and Continental Airlines.

[marcogiov]

Alitalia in need of extra €2bn


By Tony Barber in Rome
Financial Times
Published: September 2 2004 17.43 | Last updated: September 2 2004 17.43

Alitalia's directors will tell shareholders next week that they want to raise as much as €2bn ($2.43bn) in a capital increase to save the Italian flagship airline from collapse, according to a company report.
The report states that a €400m bridge loan, which was recently approved by the European Commission and guaranteed by the Italian government, will only provide enough funds for Alitalia to continue operations until March 2005.
The airline has not yet drawn on the loan and says it will not do so unless trade unions representing Alitalia's employees sign new work contracts by September 15 and accept a comprehensive rescue plan.
Without the loan, the airline says it has only enough cash to pay salaries until the end of this month. Important elements of the rescue plan, such as the airline's future structure and the number of job cuts being proposed by Alitalia's management, have not yet been made public, causing the unions to complain that a gun is being held to their head.
However, management says it will provide fuller details to the unions next Monday and to shareholders on Wednesday.
The capital increase is intended to raise up to €1.2bn for future investments as well as €700m to cover a convertible bond that matures in July 2007. In addition, the €400m emergency loan must be repaid within 12 months.
Alitalia made a loss of about €520m last year and says it expects this year's loss to be about the same. It had €72m in liquidity at the end of July.
Because the Italian state owns 62 per cent of Alitalia and has promised under the terms of the emergency loan to reduce its stake to below 50 per cent, a capital increase is sure to draw the attention of the European Commission, which will want to verify that the fresh funds do not constitute disguised state aid. The large sum envisaged for Alitalia's future investments reflects the management's desire to modernise its fleet of aircraft and to add new long-haul routes between now and 2008.
These new routes include Los Angeles and Shanghai next year, and Atlanta, Hong Kong and Rio de Janeiro in 2007 and 2008.

[Alitalia Fan]

In Origine postato da marcogiov
Zac zac zac zac.....
These new routes include Los Angeles and Shanghai next year, and Atlanta, Hong Kong and Rio de Janeiro in 2007 and 2008.

ECCELLENTE!!


Però Rio de Janeiro direi ke non è utile, visto ke c'è Sao Paulo a uno sputo.


Metterei invece la Johannesburg o la Sydney via Singapore, naturalmente col 777!


W AZ

[Alitalia Fan]

E.... Pure Atlanta non la vedo bene! Magari potrebbero mettere qualche altra rotta, ke so magari Nairobi. O se vogliamo rimanere negli USA, ke so magari Philadelphia o San Francisco.... Però buttarsi nel monopolio DL mi pare un suicidio!

[FlyIce]

Interessante anche la parte su AZ ...
.. lun. finalmente sapremo cosa c'è in sto fantomatico Piano Industriale