Flag carrier remains bullish as it benefits from falling oil prices, compensation payments and rising traffic
Air France says it is on track to improve its financial performance and boost capacity this year after staying in the black in the 12 months to March.
Unlike many flag carriers which have notched up heavy losses since 11 September, Air France reported net profits of Є153 million on sales of Є12.5 billion ($11.5 billion). However, this was sharply down on the 2001 figures of Є421 million and Є12.3 billion respectively. Operating profits were Є235 against Є443, but the company had forecast only that it would break even.
The airline added 3.5% capacity, and increased revenue per passenger km by 1.6%. Load factors dropped 1.5% to 76.6%.
France paid the airline Є55 million in compensation payments for loss of traffic and increased security costs after 11 September. An oil price fall helped too - fuel costs were 11% lower than in 2000. Chairman Jean-Cyril Spinetta says the airline faces "continuing uncertainties with regard to the economic rebound and fuel prices" as well as rising insurance costs.
Air France Industries (AFI) has secured a deal to acquire a majority stake in Chinese maintenance group Hangxin Aviation Engineering. AFI says it has a "more than 50% stake" in Hangxin. The company is one of the biggest avionics service providers in China, with a 15% share of the Chinese market, according to AFI. "This collaboration with a key player in the component overhaul market in China should enhance Hangxin Avionics' development with the extension of Airbus and Boeing fleets in China," AFI says. Hangxin has maintenance facilities in Guangzhou and Harbin as well as a facility in Singapore. It is able to service more than 8,000 part numbers for more than 40 aircraft types, including the Airbus A300, A310 and A320, and the Boeing 737-300/400/500, 747, 757, 767 and MD-80 and MD-11 models.Source: Flight International
