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Last Updated: Thursday, 22 November 2007, 08:37 GMT

Profits jump at Air France-KLM

Profits at Air France-KLM, Europe's biggest airline, have almost doubled in the second quarter as it shook off the effect of higher fuel prices.

Net profit jumped 97% to 736m euros ($1.1bn: £534m) in the three months to 30 September, while revenues rose 5.8% to 6.49bn euros.

Rising oil prices and fuel surcharges have failed to dent consumer demand, finance director Philippe Calavia said.

Oil prices have been rising steadily, reaching a high of $99.27 on Wednesday.

Many analysts are predicting that a barrel of crude oil could break through the $100-mark before the end of the year.

Passenger demand

Airlines, including Air France-KLM and British Airways, have been lifting their fuel surcharges to offset the higher crude and aviation fuel prices.

However, Air France-KLM said that so far customers' desire to travel had outweighed the higher fuel costs.

"Robust global growth" continues to buoy demand, especially on long-haul flights, the firm said.

Mr Calavia added that: "We are not seeing any weakness in passenger demand, even with the level of fuel prices where they are today, and even with the fuel surcharges we are applying."

"These are excellent results, essentially due to the strength of passenger demand, but also due to a plan of cost savings," he added.

Earnings were also boosted by a one-off gain from the sale of a ticket reservation system, the company said.

Air France and KLM merged in merged in 2004.