Klm Q2 Net Profit Soars

KLM Royal Dutch Airlines on Tuesday reported soaring second-quarter net profits and said strong growth, tough cost controls and the fruits of its ongoing restructuring had set it on course for a record year. KLMs net profit surged to 884 million guilders ($453.2 million) in the three months to September 30, including a 421 million book profit on the sale of shares in alliance partner Northwest Airlines, against 258 million the previous year. Stripping out the Northwest contribution, the remaining 463 million guilder net profit easily beat the most bullish forecasts which had ranged up to 420 million. Analysts and investors generally welcomed the figures, with KLM shares closing up 2.90 guilders, 4.21 per cent, at 71.80 in a generally lower Amsterdam market. Its a terrific result. The profits were better than expected, volumes and yield were good, said Gert Jochems of NIB Securities. Costs are under control and the forecast for the full-year is also better than foreseen.