PARIS Oct 29 Air France-KLM posted a
sharper-than-expected increase in third-quarter profits on
Thursday, but warned unions that the gains from improved demand
over the summer would not remove the "overwhelming need" for
cost cuts to keep pace with rivals.
With the year-earlier quarter hit by a pilot strike, the
Franco-Dutch airline group turned in operating profit that
almost quadrupled to 898 million euros ($982.05 million) on
revenues that grew 10.8 percent to 7.415 billion euros.
That compared with average analyst forecasts of 694 million
and 7.236 billion respectively.
But after failing to strike a productivity deal in recent
stormy negotiations with pilots, Air France-KLM lowered its
forecast for unit cost savings in 2015 to 0.5-0.7 percent from
1-1.3 percent and urged unions to resume stalled talks on the
subject. It continued to predict a 1 billion euro drop in debt
in 2015 to 4.4 billion.
($1 = 0.9144 euros)
(Reporting by Cyril Altmeyer, Tim Hepher; Editing by Andrew