Increase in flights hailed success by airline

AIR France-KLM yesterday revealed that it was achieving an average load factor of 80 per cent on its flights from Leeds-Bradford airport, despite the economic problems caused by the crisis in the eurozone.

Henri Hourcade, the general manager for UK & Ireland at Air France-KLM, said the company’s performance had been stable in October, although he warned that a period of uncertainty was lying ahead.

Last week, Air France-KLM pledged to cut costs and shake up its operations after it delivered lower-than-expected quarterly profits.

Hide Ad
Hide Ad

However, during a trip to Leeds, Mr Hourcade was bullish about prospects at Leeds-Bradford.

He said: “This year we have increased our services from three to four daily flights to Amsterdam...which is quite unique in this period of doom and gloom. This has been a success.

“There are a certain number of businesses that are very resilient to the crisis. The growth exists, and we see traffic growing.”

Last year, 140,163 passengers used Air France-KLM’s service at Leeds-Bradford. The figure for Humberside airport, where Air France-KLM also runs a service to Amsterdam, was 117,048.

Hide Ad
Hide Ad

A company spokesman said load factors from Leeds-Bradford were up by five per cent compared to last year, and figures for Humberside had risen by nearly two per cent.

Mr Hourcade said many Yorkshire-based travellers were keen to fly to Amsterdam Airport Schiphol because it served a large number of long-haul destinations.

He added: “We have increased the quality of our connections. We have opened 16 new long haul routes this year. People can fly from their doorstep to the rest of the world, to China, to South America to Africa via Schiphol.

“Another increase of capacity isn’t planned now (at Leeds-Bradford airport). But if we have demand that is pushing the load factor, then yes, we will go and increase them.”

Hide Ad
Hide Ad

He added: “Our challenge today as an airline is, firstly, the price of fuel, which has strongly increased this year. This is a challenge for our profitability.

“The general load factors that we had for all the company in October are stable, so our commercial performance is stable. The business is there, but after that there is a lot of uncertainty for the next (few) months.

“The financial and legal sector have strengths here in Yorkshire. In the UK in general we have sectors like oil and gas, which are also very resilient.

“There are also some businesses here linked to the oil and gas industry, which is developing in the North Sea.

Hide Ad
Hide Ad

“The fact that fuel prices are going up leads to new research and investments to find more fuel and gas.”

Although there are no Air France-KLM staff based at Leeds-Bradford or Humberside airports, a spokesman said: “‘Air France-KLM’s commitment to the Leeds-Bradford and Humberside airports has a positive impact on the employment in the region.

“At both airports the airline contributes indirectly to the employment of many staff through its ground handling agents.”

Mr Hourcade said the company planned to achieve “stability” for its services at Humberside and had no plans for more flights.

Hide Ad
Hide Ad

Last week, Air France-KLM chairman Jean-Cyril Spinetta said the airline needed to do more to cut costs because of its “insufficient profitability in recent quarters”. The Franco-Dutch group reported an operating profit of 397m euros and a net profit of 14m euros between July and September. Analysts polled by Reuters had predicted operating profits of 480 million euros and a net profit of 283 million euros.

The airline said it would make an operating loss for the calendar year 2011, even though April to December would be profitable.

Air France and KLM merged in 2004 but kept separate networks.

Air France-KLM said quarterly revenues rose 2.1 per cent to 6.79 billion euros, close to analyst forecasts of 6.99 billion euros.

Hide Ad
Hide Ad

Air France-KLM shares have fallen faster than many of its rivals this year as it wrestles with high staff costs, a large debt pile and competition from low-cost carriers.

A useful ‘entry door’

Henri Hourcade, the general manager for the UK & Ireland for Air France-KLM, said Leeds Bradford Airport was a useful “entry door” for leisure and business travellers.

He added: “It’s very friendly and there’s a quick service between the time you arrive and board the plane.”

Earlier this year, the airport introduced a controversial minimum £2 fee for anyone wanting to pick up or drop off friends and relatives outside the terminal building.

Hide Ad
Hide Ad

Mr Hourcade said: “People would usually prefer not to pay taxes.

“We as an airline have a general position that airports should have reasonable taxes, but they have to get revenues to balance their accounts.”