AF-KLM Cargo narrows loss, still firmly in red

Air France-KLM Cargo has reported 2013 operating losses of €202 million on revenues of just over €2.8 billion


Air France-KLM Cargo Alexandre de Juniac Gol Linhas Aereas Martinair operating loss


Air France-KLM Cargo has reported 2013 operating losses of €202 million, down from the 2012 deficit of €230 million,  but never-the-less still firmly in the red, reflecting weak global trade and overcapacity in the sector, the combined airline said.
AF-KLM Cargo’s 2013 revenues stood at just over €2.8 billion, down 7.9 per cent on 2012 (-5.7 per cent on a constant currency basis). Restructuring measures implemented over the year, saw freighter capacity reduced by 11.5 per cent compared to the six per cent initially planned, but overall capacity dropped by a much smaller 2.7 per cent due to a rise in belly space. The Franco-Dutch carrier now moves 70 per cent of its cargo volumes in its passenger bellies.
Meanwhile, the AF-KLM group has signed a strategic partnership deal with Gol Linhas Aereas in which it will invest US$100 million in the Brazilian airline. The deal will boost the airlines’ cooperation between Brazil and Europe with increased codesharing and joint sales activities, giving the French-Dutch airline a greater foothold in South America, it said in a statement.
“We are excited to join forces with Gol, a leading carrier in Brazil,” said Alexandre de Juniac, CEO of Air France-KLM. “Brazil, the host country of the upcoming World Cup and the 2016 Olympic Games, benefits from growing business and leisure traffic volumes.