Air France reports record profits
Air France said net profit rose 19% in its latest fiscal year to a record €421 million ($360 million).
The company said that strong sales growth helped offset a rise in fuel prices and the cost of integrating regional carriers. Revenue rose 19% to $10.5 billion.
For the fiscal year ended March 31, 2001, operating profit rose 23% to $378.5 million. That matched analysts’ expectations.
Air France said in a statement it expects its results for the 2001-2002 year to ”on a par with those of the previous year”, assuming there is no further downturn in the current economic climate.
Philippe Calavia, Air France’s chief financial officer, credited an improved hub system at its main Paris airport, Roissy Charles de Gaulle, with allowing the company to improve market share with business travelers. About two-thirds of all Air France traffic passes through Roissy, he said.
Air France said in a statement that it expects a 9.5% increase in capacity in the coming year.
Calavia also cited international alliances, a positive economic backdrop and a cost-cutting drive.
”This is the best annual result Air France has ever had,” Calavia told The Associated Press in a telephone interview. The company was founded in 1933.
Jean-Cyril Spinetta, Air France’s chief executive, told a news conference that discussions with Italian airline Alitalia on an alliance between the two groups are continuing.
