p27 air nov28 25/11/08 18:46 Page 27
ttglive.com
airnews
Air France-KLM
BA claims performance
profits fall 96%
AIR France-KLM chairman Jean-Cyril Spinetta has
is ‘better than expected’
predicted the airline’s capacity cuts will allow it
to overcome a 96% collapse in summer profits.
The group’s second-quarter profits, from July
Adam Coulter.
to New York JFK via Shannon in September.
to September, plummeted from £736 million in BA boss Willie Walsh has defended the airline’s He also said the premium leisure market was
2007 to £28 million this year. 92% fall in profits, saying it was a better per- continuing to hold up well, even as the corporate
Spinetta said fuel costs, which rose £420 formance than had been predicted. market began to suffer.
million to just over £1.6 billion, were the main Walsh (pictured) claimed BA’s “better-than- “Premium leisure is performing very well. In
reason for the fall. expected” results showed that the airline was fact, it is one of the strongest parts of the business.
Profits between April and September fell well placed to get through the most challenging This is evidence of people willing to pay a pre-
more than 80% on 2007 to £196 million. Second- period since after the 2001 terror attacks. mium to travel in Club and First Class, even
quarter revenue rose 3.2% to £6.7 billion. “Results were ahead of consensus,” through these not-so-exciting times.”
Spinetta said: “Our flexibility has allowed us to he said. “We are well positioned to get Walsh said he had “blanked out”
respond rapidly to adjust capacity, enabling us to through this and we want to use this the first six days of the botched
continue to maintain high load factors. as an opportunity to strengthen BA. opening of Terminal 5 in March,
“Moreover, the generation of an additional “We have a strong balance sheet, are adding that 13 million passengers
£260 million in savings this year will help us in a strong cash position and are going had passed through since then.
stabilise our costs and protect our profitability.” ahead with new products and orders.” BA is offering Executive Club
Air France-KLM is scaling back plans to Walsh said that despite the economic members 5,000 air
increase capacity on routes this winter, while conditions, BA was still pressing ahead miles if a flight
increasing cost-saving efforts and reducing the with the launch of its all-business is delayed by
scale of its investment programme. service from London City airport 15 minutes.
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