KLM EXPECTS OPERATING INCOME TO DOUBLE
KLM Royal Dutch Airlines said Monday its second-quarter fiscal results were better than anticipated and the airline predicted fiscal year operating income would more than double last year's results.
Second-quarter net income rose 71 percent to 118 million euro ($106 million), while operating income rose 52 percent to 201 million euro ($181 million), despite a 77-percent increase in fuel expenses.
“Fuel prices remain at record levels,” the company said. “Our fuel requirements for the remainder of the current fiscal year are hedged at a level of approximately 60 percent.”
The company said it would raise its fuel surcharge for all cargo rates by 4 percent, effective Nov. 1.
Operating revenue rose more than 12 percent to 1.9 billion euro ($1.72 billion). The airline saw a 15-percent increase in cargo revenues, to 261 million euro ($235 million). Cargo load factor was 71.7 percent, up from 70.5 for the year-earlier quarter. Cargo yield improved 12 percent.
Through the first six months of its fiscal year, KLM reported net income of 161 million euro ($145 million), up 55 percent. Operating income rose 45 percent to 301 million euro ($271 million).
“We are confident that operating income will also show a year-on-year improvement in the second half of the fiscal year — albeit to a lesser degree than in the first half-year,” KLM said. “We expect operating income for the full year to be more than double the operating income level of last year.”
KLM released its quarterly and half-year results two days early because a draft news release of the results was stolen this past weekend from an employee of KPMG, KLM's external auditors.