Air France has turned in a fourth consecutive year of bumper profits despite fuel cost increases of 60% and the financial effect of absorbing several domestic carriers.
The French flag carrier announced group net profit for the year ending 31 March up 18.9% at €421 million ($358 million) on turnover up 19% at €2.28 billion. Passenger numbers rose 6.5% to reach 42.4 million while the average load factor for 2000-01 increased by two points to 78.1%.
Airline chairman Jean-Cyril Spinetta says: "The last four years have seen Air France on a profitable growth strategy and, at Charles de Gaulle Airport, we have built an efficient European hub with 15,000 medium- and long-haul connections. We have a strong domestic market and are in a major alliance - these are our trump cards."
As with other carriers fuel costs remain a major headache, however, and despite a policy that will see some 56% of Air France's needs hedged until next year, the airline was forced to absorb a 60% increase in fuel prices. Spinetta also revealed that the grounding of its Concorde fleet had resulted in costs of €35 million.
Spinetta says alliance discussions with Alitalia are "going forward in an extremely serious manner," although he adds that nothing is yet definite and that "several other European carriers are also talking to Alitalia."
Air France continues to watch the problems unfolding at French rival AOM-Air Liberté, having started to reorganise its own domestic operations with the purchase of carriers like Proteus and Regional Airlines. Spinetta also says that he "understands the worry" concerning the reduction of services by AOM-Air Liberté to overseas French territories, but maintains that: "Air France is not responsible for the situation."
The AOM-Air Liberté situation is one of apparent stalemate, with disruption due to industrial action still occurring sporadically as unions continue to protest at management plans to slash jobs and halve the fleet in an attempt to cut heavy losses and find a buyer.
Source: Flight International
