Air France-KLM profit tumbles 96% on charges, fuel

LONDON (MarketWatch) — Air France-KLM said fiscal second-quarter net income dropped 96% to 28 million euros ($35 million), while revenue rose 3% to 6.69 billion euros. The airline took a 438 million euro charge relating to a change in the value of hedging instruments, and the year-earlier quarter included gains of 212 million euros from selling its Amadeus stake. Excluding one-time items, its profit would have dropped 49% as fuel prices climbed by 35%. The airline took aim at another 260 million euros of cost cuts through curtaining winter capacity growth, and it’s expecting “operating profit clearly in profit” for the fiscal year after first half operating profit of 1.14 billion euros.
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