AFI KLM E&M Third-Party Revenues Up 31%

Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) has reported a 20.3 per cent increase in revenues to €967m ($1.1bn).

Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) has reported a 20.3 per cent increase in revenues to €967m ($1.1bn).

As well as a strong dollar boosting revenues, AFI KLM E&M cited lucrative contracts acquired in previous years and weak comparables in Q1 2014 as behind the results.

Revenues from third-party maintenance contracts were up 31 per cent to €380m ($425m), but its operating margin decreased by 0.7 per cent on a like-for-like basis.

During Q1 2015 the maintenance business secured a number of 787 component support contracts which boosted its order book by five per cent.

Overall, the Air France-KLM group posted a loss of €417m ($467m) which was an improvement on Q1 2014, when it posted a €445m ($498m) loss.

Total revenues for the group were down 2.4 per cent on a like-for-like basis for the quarter, with passenger numbers and capacity remaining broadly similar.

The group’s operating costs by 3.9 per cent like-for-like, with its fuel bill falling 17.6 per cent.

Meanwhile, the group’s cargo business reduced its capacity by 1.9 per cent and posted a loss of €63m ($70m).

The group’s low-cost subsidiary Transavia reported an 11.9 per cent increase in passenger numbers compared with Q1 2014 and a five per cent increase in passenger, however, with operating costs increasing the carrier posted a loss of €69m ($77m) for the quarter – €11m ($12m).

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