Air France-KLM Reports Q4 Profit

Air France-KLM SA AFLYY reported a profit for the fourth quarter. Air France-KLM posted a quarterly profit of EUR316 million, versus a year-ago loss of EUR1.18 billion. Its earnings before interest, taxes and amortization fell 17% to EUR316 million, compared to EUR382 million. The company's revenue gained to EUR6.21 billion from EUR6.12 billion. Passenger revenue climbed 0.3% to 4.86 billion euros, while capacity rose 0.5% to 81.57 billion EASKs. Air France-KLM also announced its plans to reduce investments over two years. At the end of the year, Air France-KLM had EUR5.4 billion in debt. For the full year, Air France-KLM's posted a loss of EUR198 million on revenue of EUR24.9 billion. For 2015, Air France-KLM projects to lower unit costs by 1% to 1.3%. It expects net debt of EUR5 billion at the end of 2015. Alexandre de Juniac, Chairman and Chief Executive Officer of Air France-KLM said, "The Transform 2015 strategic plan was completed at the end of Full Year 2014, having fully delivered on its objective of an in-depth turnaround in Air France-KLM's competitiveness. The Full Year 2014 results speak for themselves: despite the challenging economic and competitive context, once corrected for the impact of the Air France pilot strike, EBITDA is up by more than 50% in 3 years, and the operating cash flow has more than tripled to reach nearly 1.5 billion euros." Air France-KLM shares declined 0.81% to close at $8.58 yesterday.