Awaiting merger with AF-KLM, VLM Airlines reports profits for tenth straight year

26 March 2008

VLM Airlines, a regional carrier operating out of London City Airport, has reported net income of €3.6 million ($5.5 million) for 2007, up 13.3% over €3.2 million earned in 2006. This is the regional carrier's tenth consecutive profitable year.

VLM has been taken over by the Air France-KLM group early on in the year. The acquisition, which still needs to be approved by the competition authorities in EU and other countries, will have no effect on the name and branding of VLM Airlines, according to airline officials.

The deal, if approved, will see the Air France-KLM group become dominant at London City Airport, where VLM has its major hub and Air France operates several services under the Cityjet banner.

Revenue for the airline was up 12.6% to €112.5 million, while expenses increased 11.6% to €106.8 million. Operating income of €5.7 million was up 33.9% over €4.3 million in the previous year.

VLM noted that it has "almost doubled in size over the last five years" and also conceded that its larger size has affected its strong service reputation. MD Johan Vanneste acknowledged "our punctuality and reliability have suffered both from the success and popularity of our services and, more specifically, the recent lack of capacity at London City Airport [where it is the largest carrier]. Resolving this will be a priority for us in 2008…"

The airline said that a large expansion programme at the end of 2006, when it added four aircraft to its fleet and also expanded the number of new services and additional frequencies on existing routes, matured in 2007 and have contributed to the increase in revenue.