Air France-KLM's MRO arm grows third-party business

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Air France-KLM’s MRO division boosted turnover nearly 4.7% to €3.28 billion ($4.49 billion) in 2013, driven by a 12% rise in third-party revenue.

The share of business accounted for external customers climbed to 37%.

Adjusted for exchange-rate effects – which had a negative impact on Air France-KLM’s 2013 business – third-party maintenance sales grew just over 15%, the group says.

Air France Industries KLM Engineering & Maintenance’s operating profit rose 19% to €159 million. Operating margin increased 0.3 percentage points.

The higher profitability was partly due to benefits from the group’s “Transform” cost-cutting programme, says Air France-KLM.

In the last quarter of 2013, operating profit increased a third to €48 million. However, third-party MRO revenues declined 5.7% to €298 million.

Air France-KLM’s maintenance expenses for its own fleet rose around 15% to €1.3 billion.