EUROPE & CIS: Air France see Q3 loss on lower pax cargo

Air France-KLM Group said it expects a third-quarter loss as a result of lower passenger traffic and a “strong decline” in cargo revenue. “The deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue,” Air France said in the […]


Air France-KLM Group said it expects a third-quarter loss as a result of lower passenger traffic and a “strong decline” in cargo revenue.

“The deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue,” Air France said in the statement.

Air France-KLM’s cargo traffic in December slumped 20.4 per cent from a year ago as its key Asia-Pacifi c market collapsed.

Like many of its counterparts, fuel hedging also hurt the carrier, preventing it from benefi ting from falling oil prices.

The cargo unit made an operating profit of €22 million in the first six months of the year against a loss of €29 million euros in the year-earlier period on revenues up 9.5 per cent at €1.55 billion.

The carrier still expects to book an operating profit for the full year ending 31 March, but the level will depend on the global economic situation in the coming weeks.

Cargo in the Asia-Pacific region, by far the busiest area, was hardest hit, falling 29.2 per cent from 487 RTKs a year ago to 345 RTKs last month. Cargo traffic in Europe fell 24.3 per cent; in the Americas it fell 13.6 per cent; traffic was down 9.7 per cent in Africa and the Middle East; tonnage in the Caribbean and Indian Ocean regions fell 4.9 per cent.