EUROPE & CIS: “Brutal” market, but AF-KLM stabilising

Air France-KLM has posted a 20.5 per cent drop in fiscal first-quarter sales as the continuing weak economic climate depressed air travel and freight demand. Overall revenue totalled €5.19 billion in the three months to 30 June. Cargo revenue dropped 41.5 per cent to €544 million due to a decline in volumes of 22.7 per […]


Air France-KLM has posted a 20.5 per cent drop in fiscal first-quarter sales as the continuing weak economic climate depressed air travel and freight demand. Overall revenue totalled €5.19 billion in the three months to 30 June.

Cargo revenue dropped 41.5 per cent to €544 million due to a decline in volumes of 22.7 per cent, a 17.2 per cent cut in capacity and a 25.1 per cent fall in yields. Sales in the carrier’s passenger business fell 18.7 per cent to €4.01 billion on the back of a 4.7 per cent reduction in capacity, a 5.8 per cent drop in traffic and a 14.5 per cent decline in yields, the carrier said.

“We maintain our assumption of a more limited deterioration in the second quarter and stability in the last two quarters, with even a slight improvement at the end of the year compared with the second half 2008-09, itself already impacted by the crisis,” Air France-KLM said.

Meanwhile, the head of Air France- KLM said last week that Europe’s biggest airline is considering part-time jobs or temporary layoffs to combat the “brutal” situation in cargo and passenger demand.

“Air France-KLM must remain competitive. I haven’t excluded temporary lay-offs. We will watch very closely. These measures should allow us to avoid affecting employment,” he said.