Continued cost cutting helped KLM deliver forecast-topping second-quarter profit today as the Dutch airline shapes up for its agreed takeover by Air France.
Boosted by the summer holiday season, Europe's number-four airline posted net income of €90 million ($106 million), up from the previous year's €86 million and more than double market forecasts, even though operating revenue disappointed predictions with a 12 per cent fall to €1.619 billion.
KLM repeated that it expected to break even at the operating level in the current fiscal year ending in March, although chief financial officer Mr Rob Ruijter told reporters the airline would not escape a "small" full-year net loss.
In the second quarter, operating profit fell to €131 million from the year ago's €141 million - above forecasts of €85.3 million.
KLM shares were 0.2 per cent lower in late-morning trade, while Air France slipped 1 per cent, still outperforming a broadly negative market. KLM is up 14 per cent since the two airlines unveiled their plans and nearly 160 per cent above all-time lows plumbed in March.