British Airways (BA) and KLM have followed the break up of their merger talks with impressive financial results.
BA's second quarter operating profits of £264 million ($400 million) were helped by a 8.7%rise in yield. BA's half year operating figure stands at £361 million. KLM, meanwhile, saw operating income rise 52%to c201 million ($213 million) in the second quarter. Passenger and cargo yields increased by 12%.
BA, meanwhile, refuses to confirm speculation that it has been in talks with Delta Air Lines about a transatlantic alliance. Analysts say that Delta is attractive to BA because it would be easier for the carrier to get anti-trust immunity as Delta does not operate out of Heathrow. However, Delta is tied to Air France and skyTeam, complicating any relationship with BA, which remains in oneworld.
Delta's David Bishko, general manager finance and planning for the Atlantic region, also refused to comment on the BA link, although he says the US carrier talks to other carriers on a regular basis. He points out that an attraction of Air France was the strength of the local market, as well as connecting traffic, and did not rule out the possibility of another similar European partner. "Growth is good," he said.
Source: Airline Business
