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Air France KLM operating profit declines 16% in Q3 2019

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Air France KLM operating profit declines 16% in Q3 2019

Air France KLM's operating profit has declined by 16% in the third quarter of 2019 as it struggled with higher fuel prices.

During the quarter, Air France KLM made an operating profit of €900 million, down from the same period in 2018.

The 2019 fuel bill is now expected to rise by €600 million, above the previously €550 million, to €5.5 billion. 

Net income was also down 53% at €366 million, seeing a 2% gain in revenue to 7.7 billion. Capacity expanded 2.3% and traffic by 2.6%. 

In the three month period, passenger numbers rose 2.1% in the third quarter to 29.1 million, load factor also saw a slight increase by 0.2% coming in at 89.8%.

However, unit revenue slipped 0.6%, and is poised to decline further, Air France KLM said. 

Air France KLM chief executive Ben Smith said: "Based on long-haul forward bookings – on average ahead of last year – and renewed commitment to a strict cost discipline, we are confident that we can deliver on our annual objectives of reduced unit cost and stable leverage ratio."