The cuts, together with higher passenger numbers, managed to off-set an increase in fuel costs, said the airline group. (Photo: Air France-KLM).

Operating income rose to €400 million euros, which was better than expected by analysts who had forecast around €316 million, according to Air France-KLM.

Better sales and “execution in unit-cost reduction enabled us to more than offset rising fuel costs,” said Smith, who joined Air France-KLM last September from Air Canada.

His strategy is to further boost efficiency through better coordination of the Air France and KLM networks and fleets, while expanding services under the low-cost Transavia brand.

Revenue rose 6.4% to €7.05 billion while unit costs fell 2.3% excluding currency and fuel costs, which rose by €220 million euros year-on-year.

To improve its fuel-efficiency and cut costs, Air France-KLM has ordered at least 60 Airbus A220s to replace ageing aircraft, and it will retire its 10 A380 superjumbos earlier than planned.

Travelmole