Air France-KLM confirms its profitability targets

Jean-Cyril Spinetta, Chairman of Air France-KLM, speaking at the UBS conference in London to

a  group  of  international  institutional  investors  on  Monday,  15th  September,  reiterated  his confidence  in  the  group’s  ability  to  emerge  stronger  from  the  crisis  brought  about  by  the slowdown  in  economic  growth  and  steep  rise  in  oil  prices.  He  also  confirmed  the  group’s objective for the current financial year of operating income in the region of one billion euros. Mr  Spinetta  said  he  expects  the  oil  price  to  remain  at  a  high level,  and  emphasized  the importance  for  the  group  of  adapting  to  this  environment.  While  Air  France-KLM’s  hedges remain the best among its European peers, they will decline in efficiency over time. The group has therefore begun work on a  plan of  structural cost-savings to complete the Challenge 10 program  currently  underway.  The  objective  of  this  new  plan  is  to  enable  the  group  to  remain comfortably in profit in the context of a persistently high oil price. Both Air France and KLM are working on the necessary measures to achieve this objective as quickly as possible.

Source: American Shipper