Air France-KLM reports heavy losses
The Franco-Dutch airline Air France-KLM, Europe's biggest airline, reported on Thursday a net loss of € 426 million ($ 600 million) in the first quarter of its 2009-2010 fiscal year.india Updated: Jul 31, 2009 07:24 IST
The Franco-Dutch airline Air France-KLM, Europe's biggest airline, reported on Thursday a net loss of € 426 million ($ 600 million) in the first quarter of its 2009-2010 fiscal year.
The results contrasted with net earnings of €149 million in the corresponding April-June period the previous year, reflecting a global battering of the aviation sector in the eye of the financial crisis.
"Global economic activity has stabilised at unprecedented low levels, leading to a sharp decline in volumes and unit revenues," the airline said in a statement, adding, "The airline sector has been particularly affected."
The group said sales had fallen 20.5 percent to €5.17 billion and that passenger traffic had dipped by 5.8 percent and cargo traffic by 22.7 percent.
Air France KLM in the last fiscal year announced its first losses since the 2003 merger of Air France and KLM and said it would cut 2,700 jobs.
The group said on Thursday there would likely be "a further deterioration in the second quarter, albeit at a slower pace than in the first" for passenger traffic and "a progressive stabilisation in the second half" for cargo traffic.