Air France-KLM on Wednesday posted quarterly profit up almost six percent, helped by a weak euro and strong passenger traffic over the summer.
Operating income was EUR€506 million (USD$657 million) in the quarter to September 30 on sales of EUR€7.18 billion, up 5.8 percent from a year ago.
"The group realised a satisfactory third quarter across all its businesses with the exception of cargo," Air France-KLM said in a statement on Wednesday.
Air France-KLM said it had a "good summer season" at its passenger business, with passenger revenue up 7.9 percent. Its cargo business, however, was "further impacted by the economic slowdown and the situation of overcapacity in the industry."
The airline is shedding more than 5,000 jobs as it seeks to cut costs and return to growth. The group is wrestling with tough competition from low-cost carriers in Europe, while Gulf carriers are eating into its long-haul premium business.
Air France-KLM said it achieved a 1.1 percent decrease in costs in the quarter excluding the impact of exchange rates. If currency effects were taken into account, costs rose 4.5 percent including a 15 percent increase in fuel costs.
Air France-KLM confirmed late on Tuesday that it is in talks with Airbus about compensation for service disruptions relating to its fleet of A380 superjumbo aircraft.
"The teams of Air France and Airbus are working closely together to fix the technical problems with the A380, which are obviously teething problems," an Air France-KLM spokesman said.