Belly focus key in AF-KLM return to profitability

Air France-KLM credits the “strategic actions” of its cargo division launched at the end of 2009 for helping the Franco-Dutch carrier group’s return to profitability, despite a one billion euro fuel bill and crises in north Africa, the Middle East and Japan which depressed demand. The carrier group posted a full-year operating profit of 69 […]


Air France belly cargo combi freighter KLM Martinair profitability


Air France-KLM credits the “strategic actions” of its cargo division launched at the end of 2009 for helping the Franco-Dutch carrier group’s return to profitability, despite a one billion euro fuel bill and crises in north Africa, the Middle East and Japan which depressed demand. The carrier group posted a full-year operating profit of 69 million euros (US$98.6 million) in its cargo business – an impressive swing from the loss of more than 430 euros in the previous year. This, together with improved profits in its maintenance business and the wiping out of almost all its passenger business losses, helped the group post an operating profit of 122 million euros for the year to March 2011, compared to group losses of 1.28 billion euros a year earlier. The full year net profit of 613 million euros was substantially aided by a one billion euro gain from a revaluation of the company’s 15 per cent stake in the Amadeus reservations system, which is now listed. The restated net loss amounted to 234 million euros. These strategic actions in the cargo division included a bold step to focus on a strategy of utilising belly space on its passenger and combi aircraft while scaling back its freighter operations and shifting freighters to its Martinair unit.