The financial results for the first quarter announced by Air France-KLM Group show a loss of US$785 mn despite a 5.5 per cent rise in passenger traffic. While operating costs, high fuel prices and salaries contributed to the overall figures, the losses were largely due to a slow offtake of cargo. During the first quarter, traffic fell by 6.1 per cent, capacity lost 2 per cent and load factor declined by 2.9 points. Cargo revenue finished the quarter down 3.3 per cent when compared to the same period in 2011.
Meanwhile, AF-KLM Group is keen to have a commercial pact with Etihad, according to Air France-KLM Group’s chief financial officer Philippe Calavia quoted by Bloomberg. However, the final agreement would take quite some time to be reached.