Paris - French-Dutch airline Air France-KLM said Thursday that profits for the first half of fiscal year 2008-9 slumped because of the economic slowdown and the high cost of fuel. Operating income fell by 43.9 per cent, to 639 million euros (800 million dollars), in the period ending September 30, the carrier said in a press statement.
Earnings per share plunged by 84 per cent, to 0.66 euros, while turnover stood at 12.983 billion euros, up a modest 4.4 per cent, for the first half of the fiscal year.
Company head Jean-Cyril Spinetta said the sharp rise in oil prices earlier this year had added 700 million euros to the company's fuel bill.
The company said that "the operating environment continues to be affected by deteriorating economic conditions," and stated that its aim was to show "an operating income clearly in profit for the full year 2008-2009."
Investors were not convinced, and bid down Air France-KLM shares by more than 7 per cent, to 9.32 euros, in mid-morning trading on the Paris Bourse.
