Air France-KLM to post record FY07/08 margins as analysts focus on 2009

Meanwhile, sales are expected to reach EUR24.1 billion, up from last year's figure of EUR23.1 billion. 

Societe Generale analysts, forecasting net income of EUR1.3 billion on sales of EUR24.1 billion, stated they will be watching the group's operating results closely. They stated they expect it to rise 13% year-on-year to EUR1.4 billion, representing a "best ever" operating margin of 5.8%.

The analysts said " [the airline] has not yet given guidance for full-year 2009, but we will look for any comment on whether it believes it can sustain this margin in the light of higher oil prices - we forecast fuel costs up EUR1.1 billion in full-year 2009."

Meanwhile, Deutsche Bank analysts stated they expect a EUR101 million net loss in the fourth quarter on sales of EUR5.6 billion, compared with a EUR43 million net profit on sales of EUR5.4 million in the same period a year earlier.

The analysts said "Almost more important than any profit guidance are Air France-KLM's plans to cope with the upcoming airline environment and here we look for the company to focus more heavily on its 'Challenge' cost-saving programme and discuss what it will do if its markets see seemingly inevitable demand reductions.”
 
The analysts added "At this early stage of the year, we believe Air France-KLM is likely to be cautious in its full-year guidance; however, we believe Air France-KLM does have scope to grow profits in the forthcoming financial year,” noting the airline's strong fuel hedging policy.


Date posted: 22-May-08

 

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