The Dutch airliner, KLM, has announced full-year profits for the first time in three years.

KLM, Europe’s fourth largest carrier, wrong footed analysts and its own forecasts by reporting a net profit of 24m euros for the year ending 31 March – -an impressive improvement from a net loss of 416m euros the year before.

The company attributed the recovery to its cost-cutting programme, as it met its 200m euros cost savings target.

Leo van Wijk, KLM president, said: “The results signal a great achievement against the background of a continuously difficult operating environment.”

The airline – which is about to merge with Air France in a move that is unlikely to change the company’s strategy – also announced that it had managed to cut its operating cost by 19 per cent.

Van Wijk said: “Following the merger, a continued strong focus on costs is essential for the new group to further improve our financial performance. Therefore we remain committed to deliver on our structural cost reduction programme, while at the same time we take up the opportunities and synergies that lie ahead of our company as part of the new airline group.” Details: www.klm.com