Air France-KLM losses deepen

Air France-KLM losses deepen

Air France-KLM saw first-quarter operating losses deepen as increased passenger traffic failed to compensate for weak international trade and record fuel costs.

Operating losses grew to €597 million from €403 million a year earlier on revenues which grew 6% to €5.645 billion. Net losses were flat at €368 million.

The Franco-Dutch group warned of wider operating losses in the first half, but maintained its objectives for the full year as a restructuring plan starts to bear fruit in the second half.

The first-half loss is likely to be worse than the €548 million reported last year, the company said.

But figures will then be aided by the first benefits from savings measures already agreed in the carrier’s ‘Transform 2015’ programme.

“The annual fuel bill is expected to increase by €1.1 billion,” the carrier said. “In this context, the group is highly focused on the negotiations underway, the successful outcome of which will enable it to significantly improve its economic efficiency between now and 2014.”

The carrier said in January it aimed to cut €2 billion from operational costs.

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