nancy asked the airfrance-klm cfo about geopolitical turmoil on the earnings. she is in paris and joins us now. nancy, what was the message given from the cfo? >> good morning. the overriding message coming from the cfo at airfrance-klm is that we're committed to cutting costs going forward when they talk about their target they're eyeing, in excess of 1.5% for cost units to bring down after a year in which investors were pleased with progress on costs, in an environment in which the company got a big boost on operating results coming from a drop in fuel prices. i did ask the cfo whether he was concerned about a stabilization in oil prices, not so much he said. they expect with hedging benefits that that impact will be neutral over the year. nevertheless it's a change in external circumstances to take into consideration. now, looking at the industry itself, analysts have for quite some time been concerned about overcapacity, especially on transatlantic routes. i asked him what his thoughts were on the capacity situation. take a listen. >> it's true that during

the ceo of air, france-klm joining us from our paris bureau.onnie: getting back to capitol hill, house speaker paul ryan holding his weekly news conference. france-klm joining us from our parishe has been talking abt of different issues on, you know, everyone's minds these days. congress will act on obamacare after president's day, which is on monday. congress acting on obamacare after president's day. then of course, congress is not in session all of next week. said the house intelligence committee is anding at russia issues, its a proper place for the country to be looking at russia issues. he said the u.s. is one of the few nations that doesn't border and a new border adjustment tax for u.s. manufacturing is needed. he said tax reform is going to happen. watch his full remarks on the bloomberg at live go. this is bloomberg. ♪ mark: live from london and new york, i mark barton. this is the european close on bloomberg markets. we are awaiting a press from president trump eastern, 5:30 london time, where he's expected to announce the labor secr

. >> this senator from washington could expect klm him one then to make sure they strongly oppose want but to stand with there 11 but to make sure those opportunities that weretu there for me delivers an open to every student if because the department of education specifically has an important role to play to make that happen to one i taking ferry but this agency bonds then dies and i will discuss but many colleaguesany t will spend their time on food tried to stop the enemy shin and and he should read and write anybody that he once sent should sit down and be quiet. i believe that. said it has an important 11 fox off but to stop that this business is heavily that the alliance through the potential of our but there will not back down m asking my constituents. the ones they want about their finances with a conflicts of interest. how they plan to avoid them. and how they plan to uphold the letter in the spirit of our ethics laws. without the author's of financial disclosure senators go into a hearing in the dark on a nominees ethics and finances and that is exactlywhew what we were pushe

klm has reported a nearly 35% increase in profits last year to over one billion euros.ow fuel prices and cost-cutting measures helped offset a drop in passenger numbers and losses due to pilot strikes. shares rocketed 12.5%. france has over 120 airports, and many of the smaller ones typically serve very few passengers. a new report says all of those little used runways are a big waste of taxpayer money. reporter: little used routes and quasi-emptyy -- and terminals, france has over 100 airports, some of them very close to one another. --draining the public purse it is draining the public purse. one is now redundant, the site almost abandoned. nonetheless, both airports receive an average of 30 million euros every year. an airport needs 200,000 passengers per year to get money, yet hands -- half of fra nce's don't see that. the airfields need to be used more efficiently. there are nonprofit airports that could be extremely useful. it's a tourist attraction. by subsidizing a new low-cost site, it gave the airport a new life. reporter: but to stop unnecessary expenses, som

yearly profits for 2016, on the back of lower fuel prices and cost-cutting initiatives on the dutch klm side of the business. shares are up over 8% in trading today. despite the good news, the company is predicting a turbulent 2017. it is under pressure from a number of low-cost carriers. armits at the air france actually fell by over half for the year. airline has apparently a lot of places to land here in france. perhaps maybe even more than they need. ,> france has over 120 airports and many of the smaller ones typically served very few passengers. al of these used runways are big waste of taxpayer money, according to a new report. here's our correspondent with a new report. france has more than 100 airports, some of which are very close to each other and are draining the public purse. areormandy, three airports over 50 square kilometers. redundant, almost abandoned. nonetheless, both airports receive an average of 30 billion -- of 30 million euros every year. an airport needs 30,000 passengers every year to make money. this mp is not advocating closures but thinks the country's airf

it was just that many were canceled, many were disrupted, and of course amsterdam is the hub for klmairlines. it has been resolved for now but the question remains exactly why this seems to be happening with greater frequency, it comes just days after the major problem with delta which suffered a computer disruption leading to the cancellation of up to 300 flights and something called a ground stop. again, due to a system outage. they lost power at an operation center in atlanta and august, that was also delta appear that affected computers which led to the cancellation of 2,000 flights over three days. united had a computer glitch itself the week before, canceling 200 flights. these problems and of costing airlines tens if not hundreds of millions of dollars, one analyst blamed the tech infrastructure which he says is increasingly getting old and also patched with different systems as new software gets built on old software or this happens also when companies merge. again, the problem at schiphol airport, the air traffic control that works with schiphol airport has been resolved, bu

they say that the klm unit is up from 384. those are some of the lines coming through.ey thing for the market will be the nestlÉ numbers. the european close with mark barton and vonnie quinn, catch that interview at 4:15. let's talk about all the politics of europe, the foreign ministers, that is. beginning their two-day meeting in germany. this will be the first trip for rex tillerson to europe in that role. patrick donohue is there for us. thank you for joining me. i know it's early in the day for you there, but what can we expect from this g-20 meeting. it's rather a special conflagration, isn't it? >> it's a g-20 foreign ministers meeting, which is outside the purview of most g-20 subjects which deal with global finance and the economy. foreign ministers will talk about conflict prevention and climate change. they will be testing the position of rex tillerson and the trump administration on their position on a whole range of multilateral issues. manus: i suppose everyone will be focused on the tillerson-lab rob meeting. what can we expect in terms of the munich secu

brian nick from tiaa and jeff killberg from klm financial. >>> tesla falling short in a new crash test. we have the results and the story for you coming up. you're watching cnbc, first in business worldwide. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. >>> just under three minutes left in the trading session with the dow up 25 points. markets zigzagged today. pretty good rally on the open this morning. well off those highs right now for the industrial average. if not for apple the dow would have been lower today. look at apple. i mean a huge rally today that is pretty much held on to after those blowout earnings last night that included record sales for the iphone. had the fed announcement today. we saw some market response as the expectations for a rate