The new flight of Air France-KLM

The shares of Air France-KLM SA rose with 9 % and thus is back to its first yearly net profit since 2008, mainly doe to the successful plans for spending cuts combined with cheaper fuel finally paid off.

Air France-KLM's turnaround came despite difficult labor relations and the terrorist attacks in and around Paris last year which deterred visitors to the French capital.

But it remains a work in progress. Long-haul rivals like British Airways, owned by International Consolidated Airlines Group, and Dubai-based Emirates Airline as well as discount carriers such as Ryanair Holdings PLC are much more profitable.

Air France-KLM shares were up nearly 9% on Thursday after the airline group said it swung to a net profit of €118 million ($132 million) in the 12 months to Dec. 31 from a €225 million net loss the year before. Revenue rose 4.6% to €26.06 billion.

A 20% drop in fourth-quarter fuel costs led to 6.7% or €446 million reduction in the annual fuel bill, offsetting a 2.8% rise in staff costs. Jet fuel prices have fallen around 41% in dollar terms in the past year as crude oil prices tumbled.

Even so, the group's 3.1% operating profit margin is meager by European standards, contrasting with an 11% margin at IAG in the nine months to end-September and a 26% margin at Ryanair in the nine months to end-December.