Air France-KLM's Q2 profit rises, helped by premium sales

Air France-KLM's Q2 profit rises, helped by premium sales

Air France-KLM's Financial Performance

By Jesus Calero and Joanna Plucinska

Impact of Premium Services

LONDON (Reuters) -Air France-KLM reported higher second-quarter operating profit on Thursday, citing strong bookings for its premium services even as the sector frets about the knock-on effects from U.S. President Donald Trump's tariff war.

Market Trends and Outlook

Europe's major airlines have been watching for a possible dip in transatlantic travel as European travellers have shied away from booking trips to the United States this year.

But Air France-KLM highlighted its strategy focused on a new first-class cabin and strong sales for its premium economy cabin, particularly for KLM.

"We are advancing premiumization, pushing the boundaries of aspirational travel with enhanced products and services," Chief Executive Ben Smith said in a statement.

Second-quarter operating profit rose to 736 million euros ($845 million) from 513 million euros for the same quarter last year. That was broadly in line with the 760 million euros expected in an analyst poll compiled by LSEG.

The summer travel season is a key test of how well pricing power and booking trends are holding up for carriers like Air France-KLM heading into the second half of the year.

Air France-KLM previously said it had cut some economy fares to remain competitive. Still, it confirmed its outlook for the full-year.

($1 = 0.8713 euros)

(Editing by Mark Potter)