Air France said today that talks with Dutch airline KLM had become more active recently, with the airlines examining what sort of returns an alliance would bring.
"As KLM has indicated recently, we have entered into a more active phase," said Air France chief operating officer Mr Pierre-Henri Gourgeon on a conference call to discuss the airline's first-quarter results.
"We are looking in more detail at the returns we can expect from an alliance with KLM. This is what we are looking at right now."
The comments come amid speculation that Air France could soon lure KLM into its SkyTeam alliance, which includes leading US carrier Delta.
KLM said last week it was holding alliance talks with both Air France and British Airways, which belongs to the rival oneworld alliance.
A report last week suggested Air France and KLM could go even further, with the French government exchanging a portion of its 54 per cent stake in Air France for stock in KLM as part of deal that could see the French airline take over its smaller rival.
"We have been saying recently that our talks with Air France have intensified. There is nothing new to add today," said a KLM spokesman in response to the Air France comments.