Air France maintains increase in profits

The airline, Air France surges forward, much against analyst forecasts with first-quarter profits. This was achieved with emphasis on pushing business class bookings and suppression of fuel expenses through hedging deals.

Paris showed up an increase of 5.5% in profits for Air France. While analysts predicted net earnings at 152 million euro, Air France brought in 168 million euros. Sales swung up to 6.29 billion euros clocking an increase of 5.8%.

Business travel saw an upsurge, according to Air France CEO Jean-Cyril Spinetta of 3.7 percent particularly across Asia and the Americas. The airline increased passenger seating numbers for the months of October and November by 2 %.

With successful hedging on fuel prices and obtaining transfer passengers at the big airports in Paris and Amsterdam, analysts now believe that Air France’s performance is very much in sync with market predictions. It is quite evident, said analysts, that Air France has avoided fluctuating passenger rates by keeping fuel expenses down through hedging.

Now valued at 5.1 billion euros, shares at Air France have swung up by a stunning 89% to 17.5 euros. This, when compared to last year’s performance is 30% lower. However, spokespersons at the airline expressed the company’s satisfaction with its performance, considering the worldwide slump in the airline industry, passenger fare hikes and increased fuel expenses.

Industry analysts, Morgan Stanley stated that the airline industry had taken a beating in the latter part of the year, in terms of profits. Air France, it said, had escaped this grim scenario by managing to chalk up an additional 190 million euros by way of cutting down its internal costs.

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