Air France-KLM on the up
Published: 25/07/08
Europe’s biggest airline Air France-KLM has announced a huge jump profits for the second quarter of 2007. The jump in profits is mainly due to the increase in flight to China and flights to India have helped the company’s stock rise to a four and a half year high.
With Air France and KLM having two major hubs in Paris and Amsterdam allows them to attract huge amounts of passengers on connecting flights. The group also has access to other profitable routes including Africa and South America. In a further move to increase profit, prices were increased on all flights to boost both the airline’s earnings and to counter the rising cost kerosene fuel.
Air France seems to have a very strong position within its own markets as the competition on the routes it operates remains limited and therefore can keep prices in line with the price it pays for fuel.