Air France-KLM has returned to profit.

The combined airline company has seen a US$1.34 billion gain for the fiscal first quarter.

Compared with a net loss in the same period a year ago, the result has been described as being above expectations.

The airline group said passenger and cargo traffic had both improved.

It also put down part of the profit to reducing its stake in the Amadeus booking system, of which it was a 22 percent partner.

The company has now reduced its stake in Amadeus to 15 percent.