As a result of economic slowdown and soaring oil prices, Air France KLM reported on Tuesday that its first-quarter net profit has more than halved. Notably, Air France-KLM is the biggest carrier on the globe in terms of revenue. The statement made by the firm on Tuesday said that the net profit for the first quarter fell by 59 percent to EUR168 million euros (USD$262 million).

Raymond James analyst Bruno de la Rochebrochart noted, "The results really look good and the outlook has been confirmed. Beyond the results, the fall in the price of oil is supporting the whole sector."

The airline recently confirmed that the results for the first quarter were perfectly in line with the objective of the company to achieve an operating income of EUR1 billion for the full year. The airline also said that despite the slow down of global economic growth and the rising of oil prices, the rate of passenger traffic increased by 3.7 percent offering a load factor of 80.3 percent for the airline.

It is reported that the fuel bill of the firm amounted to EUR1.36 billion, whereas the same was EUR1.09 billion on 3oth June 2007, which was actually an increase of EUR266 million or 24.3 percent. This was brought about by a 3 percent increase in the airline's volume, an increase in the cost of jet fuel after hedging of 40 percent and after a positive currency impact of 14 percent.