KLM POSTS STRONG 3RD-QUARTER RESULTS
KLM Royal Dutch Airlines on Thursday reported net income of 4 million euro ($3.7 million), for its third quarter, compared to a loss of euro 18 million for the year-earlier period.
Operating income was euro 46 million ($42.8 million), compared to a loss of euro 30 million in 1999. Revenue rose 13.4 percent to euro 1.75 billion ($1.63 billion). Operating expenses rose 8.3 percent to euro $1.70 billion. Excluding aircraft fuel costs — which jumped 61-percent from the year-earlier quarter — and operating expenses increased only 1 percent.
Cargo revenues rose 25 percent to euro $313 million ($291 million). Cargo traffic improved 4 percent while capacity rose only 3 percent, which resulted in an increased load factor of 74.7 percent for cargo operations, KLM said.
For the first nine months of its fiscal 2000, KLM reported net income, excluding extraordinary items, of euro 165 million ($154 million), up 92 percent from fiscal 1999.
Operating income jumped 96 percent to euro 347 million ($323 million). Revenue rose 12.7 percent to euro 5.41 billion ($5.03 billion).
The airline is well ahead of its mid-year projections of doubling its operating income over 1999. “In the light of continuing very strong trading conditions, our success in containing manageable unit costs, and seeing fuel prices coming off their record highs since December, we expect operating income to be considerably beyond previous expectations,” the company said.
KLM also Thursday reported the appointment of Marleijne Wijnen and Emilie van Karnebeek as directors of investor relations. They succeed Jantiene Klein Roseboom, vice president and investor relations officer, who will join the Maitland Consultancy Ltd in London and a partner and head of the firm's investor relations practice.
Marleijne, investor relations officer, has been with KLM since August. Prior to joining the company, she was with ABN AMRO Rothschild.
Emilie, director, of corporate finance, has been with KLM since 1996. She was an associate at Mees Pierson Corporate Finance and Capital markets before joining KLM.