LONDON, March 6 (Reuters) - Air France-KLM

reported on Thursday a better-than-expected annual result for

2024 as its ongoing efforts to contain costs paid off with a

strong performance in the fourth quarter.

European airlines had strong demand in 2024 but struggled to

shake off the impact of labour strikes, rising inflation and

maintenance costs.

The group warned in November that its costs in 2024 might be

higher than expected, primarily due to higher staff and

maintenance costs at Dutch carrier KLM.

But in the fourth quarter, Air France-KLM reported an

operating profit of 396 million euros ($427.28 million), nearly

double the 205 million euros expected by analysts polled by

LSEG, driven by increased passenger numbers and cost containment

efforts.

"In the fourth quarter of 2024, Air France-KLM delivered a

particularly strong finish, concluding a year shaped by both

operational and external challenges," Chief Executive Ben Smith

said in a statement.

Air France-KLM reported a 6.4% fall in full-year operating

profit to 1.6 billion euros ($1.73 billion), better than the

1.35 billion euros ($1.46 billion) expected by analysts polled

by LSEG.

($1 = 0.9268 euros)