Brazilian stake on the menu for Air France as it climbs to a profit
AIR FRANCE KLM swung back to an operating profit last year, the airline revealed yesterday alongside a $100m (£60m) plan to invest in Brazilian carrier Gol.
The firm said revenues rose 2.3 per cent at constant currency to €25.5bn (£21bn) and operating profits came in at €130m, compared to a loss of €336m in 2012. However, impairments linked to the sale of CityJet and tax deferrals sent the firm into a net loss of €1.18bn.
Air France said it will target earnings before interest, tax, depreciation and amortisation of €2.5bn this year, up from €1.86bn in 2013, and cut its debts to €4.5bn during 2015.
During the year, the airline cut staff costs by 2.3 per cent as part of an overhaul that will cut 7,900 jobs, and lowered its fuel bill by 5.2 per cent.
“We are reasonably confident that the economic situation has stopped weakening,” chief executive Alexandre de Juniac told reporters yesterday.
The company carried 78.4m passengers last year, a rise of 1.3 per cent.
Meanwhile the Franco-Dutch group said it will pay a 169 per cent premium to buy a 1.5 per cent stake in Gol, which will come with exclusivity agreement for the pair in European and Brazilian markets. The deal should clear in time for the Brazil World Cup in June.