* Sees 2010/11 operating profit of more than 300 million eur
* Targets 3 percent cost reduction in three-year plan
* Eyes adj op margin above 7 percent in three-year plan
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PARIS, Nov 17 (Reuters) - Air France-KLM raised its fiscal full-year earnings goal after swinging to a second-quarter profit as demand for air travel continued to recover and the carrier limited capacity to support prices.
Europe's largest airline group by revenues also set targets for the next three years, starting in April, for a 3 percent reduction in costs, an adjusted operating margin above 7 percent and a return to a debt-to-equity ratio of 0.5.
"In the context of a more favourable economic environment, all the strategic actions we have undertaken over the past year have enabled us to return to profit," Chief Executive Pierre-Henri Gourgeon said in a statement on Wednesday.
The Franco-Dutch group had already raised its full-year earnings expectations last month when it predicted an unspecified operating profit for the financial year ending March 31, excluding any major adverse events.
On Wednesday, the carrier said it was now targeting full-year operating income of more than 300 million euros ($405 million). Second-quarter operating profit was 576 million euros, compared with a year-earlier loss of 47 million.
The carrier made an operating loss in the first quarter after it took a hit, estimated at 158 million euros, from the volcanic ash cloud, which led to the shutdown of European airspace in April.
The company's cargo business also swung to a small profit in the second quarter to Sept. 30, it said.
Last week, Air France-KLM was among a number of airlines who were fined a total of 799 million euros by European regulators in a price-fixing case that could open the way for private claims against the companies.
Air France-KLM's portion was the biggest at 340 million euros, and the carrier said it would appeal what it called a disproportionate penalty. ($1=.7409 Euro) (Reporting by James Regan; Editing by Tim Hepher)