AF-KLM nears 100 per cent loss
10 / 11 / 2011
AIR France KLM’s cargo business posted an operating loss of €37 million (US$50.7 million) in the quarter ended 30 September. Overall, the group’s net profit was €14 million, down 95.2 per cent from net income of €290 million in the same period in 2010.
Foreign exchange losses and a decline in the value of hedging instruments contributed to poor figures.
Operating revenue rose 2.1 per cent to €6.79 billion in the quarter, while expenses climbed 5.3 per cent to €6.39 billion owing mainly to fuel costs. Operating income fell 31.1 per cent to €397 million.
Following the sacking of Pierre-Henri Gourgeon new chief executive officer Jean-Cyril Spinetta said management will focus on three priorities: a quick reduction of the company’s €6.5 billion net debt, additional cost savings and the restructuring of its short- and medium-haul business.
The carrier’s cargo traffic fell 5.2 per cent in October. The load factor dropped four per cent to 66.3 per cent.