Restructuring keeps KLM in black ahead of merger

KLM has moved back into profit during Q3 after cost cutting and restructuring measures took hold ahead of its proposed merger with Air France.

The news meant that the Dutch national carrier was able to give an optimistic outlook as it raised its forecast for its 2003/2004 financial year.

President and chief executive Leo van Wijk said he expected positive operating income while net income should approach break-even.

The Dutch national airline which plans to merge with Air France, said that in spite of stiff competition and a drop in traffic revenues the group's "persistent focus" on cutting costs had delivered an operating profit in the quarter.

KLM reported that it had cut about 2,600 full-time jobs and made about €125m in cost savings by the end of Q3.

The airline hopes it can cut its workforce by 13%, or 4,500 full-time jobs and realise savings €650m 2005.