Newly merged Air France – KLM, the world’s top airline measured by revenues, has announced healthy operating profits for the three months to September of nearly 300 million euros.However forecasts for the full year may be optimistic warns the company, as high oil prices are raising costs. It is no longer claiming 2004 will see “substantial” operating growth, but management insists the merger is paying off. Profits have beaten analysts’s forecasts, and revenues are rising earlier than expected, mainly because KLM’s passenger figures are rising thanks to the plug-in with Air France’s extensive network. Synergy magic is offsetting the oil price rises, and there is also short term relief there from the weak dollar, although in the medium term this will make US airlines more productive.
Merger paying off says Air France/KLM