Air France KLM posted a stronger-than-expected 28 per cent jump in quarterly profit this morning and said full-year operating income would rise.
Air France KLM said operating profit rose to €725 million ($1.08 billion) for the three months to the end of September, while revenues of €6.489 billion were up 5.8 per cent.
Profits at the world's biggest airline by revenues were powered by strong demand, especially on longer routes, and by fuel surcharges and hedging that buffered the airline from surging oil prices.
Its shares jumped on the news and were the Paris bourse's biggest gainers, up 4.98 per cent at €23.21 at 9.15am.
The operating results beat analysts forecasts which averaged €659 million. The carrier's fuel costs rose just 1.8 per cent, as overall operating costs rose by 3.6 per cent to €5.7 billion.
The airline said while passenger revenues grew by 6.1 per cent, cargo revenues fell 0.3 per cent.