EUROPE & CIS: AF-KLM posts narrower loss than expected
Air France-KLM posted a narrower than expected fourth quarter loss this week after capping staff costs and cutting capacity as it awaits for elusive signs of a recovering in passenger andcargo traffic. EuropeÃ¢â‚¬™s largest airline by revenue reported a fiscal fourth quarter net loss of Ã¢â€šÂ¬505 million (US$698.3 million) and a full-year net loss of […]
June 1, 2009
EuropeÃ¢â‚¬™s largest airline by revenue reported a fiscal fourth quarter net loss of Ã¢â€šÂ¬505 million (US$698.3 million) and a full-year net loss of Ã¢â€šÂ¬814 million compared with a Ã¢â€šÂ¬1.4 billion full year profit a year earlier, as a result of the ongoing global economic crisis.
The groupÃ¢â‚¬™s cargo division posted an operating loss of Ã¢â€šÂ¬206.8 million (US$286 million) in cargo revenue for its 2008/2009 financial year compared to a profit of Ã¢â€šÂ¬42 million in the previous 12 months.
Excluding Martinair, which became a wholly-owned KLM subsidiary at the end of 2008, total cargo revenue for the group was Ã¢â€šÂ¬2.8 billion Ã¢â‚¬“ a drop of 2.4 per cent over the previous period.
Cargo contributed 14.9 per cent of Air France-KLM total airline revenue in the 12 month period to March 31 Ã¢â‚¬“ down from 15.2 percent the previous year.
But chief executive Pierre-Henri Gourgeon said there were some signs that the declining traffic may have bottomed out. Ã¢â‚¬Å“Since 6 to 8 weeks ago we have seen some stabilisation of the crisis in passenger and cargo, but no sign of recovery yet,Ã¢â‚¬Â Gourgeon said.