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Air France SA said Monday that its second-quarter net profit fell 35 percent to €57 million ($57.4 million), but sales were stea
Air France SA said Monday that its second-quarter net profit fell 35 percent to €57 million ($57.4 million), but sales were stea
admin
2008-01-10
47
问题
Air France SA said Monday that its second-quarter net profit fell 35 percent to €57 million ($57.4 million), but sales were steady and operating profit surged.
Earnings before interest and tax, a measure of operating income, gained 86 percent to €141 million as fuel costs fell and cargo traffic rose. Air France has been hurt less than rivals such as British Airways PLC and Lufthansa AG by the slowdown on North Atlantic routes following the war on Iraq in 2003 because it has fewer flights in that market.
Net income fell as the airline paid deferred taxes that came due. Sales rose 0.9 percent to €3.2 billion. The carder lost about €80 million in revenue because of a four-day strike by pilots in September. An accord was reached tying future pay increases to inflation. The carder said that first-half fuel costs fell 15 percent to €680 million. Cargo traffic rose 11 percent in the second quarter, while passenger traffic rose 1.1 percent. The airline’s shares gained 87 cents, or 7.7 percent, to close at €12.11.
Separately, Air France and Alitalia SpA agreed to buy 2 percent stakes in each other as Europe’s second- and sixth-largest airlines deepen their partnership.
Why did Air France’s net income fall despite rising sales?
选项
A、Because it had to pay deferred taxes that came due.
B、Because the French market was shrinking.
C、Because of a four-day strike by pilots in September.
D、Because the Iraqi war had reduced Atlantic flights.
答案
A
解析
参看第三段第一句Net income fell as the airline paid deferred taxes that came due.
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