EUROPE & CIS: Cargo bright spot as profits plunge at AF/KLM
Air France KLM reported a 96.2 per cent drop in consolidated net income for its fiscal second quarter ended 30 September to â‚¬28 million (US$35.4 million) from â‚¬736 million earned in the year-ago period. But Europe’s biggest airline said its cargo operation swung to a profit in the fiscal second quarter from a loss a […]
December 1, 2008
But Europe’s biggest airline said its cargo operation swung to a profit in the fiscal second quarter from a loss a year ago as increased operating margins off set lower freight volumes.
The carrier’s cargo unit reported operating income of 5 million euros (US$6.25 million) in the July-September period against a loss of $15 million in the 2007 quarter. Profit for the first six months totaled $27.5 million from a loss of $36.25 million a year ago.
The carrier’s closest European rival, Lufthansa, booked cargo profits of $57.5 million in the July-September period, up from $45 million the previous year.
Air France-KLM’s second-quarter cargo revenue climbed 8.5 per cent to $979 million from $903 million as an 18-per cent surge in revenue per tonne of cargo flown more than off set a 6.8-per cent decline in traffic. First-half revenue gained 9.5 per cent at $1.94 billion but traffic fell 2.7 per cent.
Load factors slipped 4.5 percentage points in the second quarter to 61.3 per cent from 65.5 per cent in 2007.