Air France-KLM Says Turnaround Plan Taking Hold in Costs

Air France-KLM Group said an earnings recovery driven by cost cuts under new Chief Executive Officer Alexandre de Juniac is picking up speed and reiterated a plan to increase profit this year and further reduce debt.

Earnings before interest, tax, depreciation and amortization last year rose 34 percent to 1.86 billion euros ($2.56 billion) from 1.39 billion euros while revenue was little changed at about 25.52 billion euros, the Paris-based airline, Europe’s biggest, said today. The net loss widened to 1.83 billion euros on costs tied to a disposal and the depreciation of losses carried on the balance sheet.