SuperCaravelle
Topic Author
Posts: 261
Joined: Mon Jan 23, 2012 8:04 pm

Air France-KLM Reports Quarter 1 Loss

Fri May 04, 2012 11:23 am

Air France-KLM reports a quarter 1 operating loss of 597 million euros ($785 million) from 403 million euros a year earlier, according to Bloomberg. Dutch news reports the net loss amounts to 368 million euros, which is a bit lower than last year for the same quarter.

Passenger numbers and ticket prices are up, cargo is still a major headache for the group, which runs 2 dedicated cargo airlines (Martinair and Air France cargo), on top of the combi and belly freight of the passenger fleet.

It's no surprise that fuel prices are also cited as a reason for the loss. Fuel costs rose with 17% or 255 million euros to 1.7 billion euros, for a revenue of 5.6 billion euros.

http://www.bloomberg.com/news/2012-0...s-fuel-wipes-out-traffic-gain.html

No further breakdown of costs and revenue streams is given, although the Dutch equivalent of the Financial Times (Het Financieele Dagblad) reported a few weeks ago that the KLM part of the company reported an operating profit of 200 million euros over 2011.

The article cites that cost cutting measures will be taken to turn around the company, as the fuel prices cannot be the only reason for the bad performance. Will it be enough, is the big question...
 
mikey72
Posts: 1439
Joined: Tue Oct 06, 2009 1:31 pm

RE: Air France-KLM Reports Quarter 1 Loss

Fri May 04, 2012 11:47 am

Quoting SuperCaravelle (Thread starter):
Will it be enough, is the big question...

AF will be fine. This process is inevitable and they will emerge a much better airline for it.
Flying is like sex - I've never had all I wanted but occasionally I've had all I can stand.
 
PezySPU
Posts: 281
Joined: Mon Dec 12, 2011 1:27 pm

RE: Air France-KLM Reports Quarter 1 Loss

Fri May 04, 2012 4:42 pm

Quoting SuperCaravelle (Thread starter):
KLM part of the company reported an operating profit of 200 million euros over 2011.

Nice... So I guess that's confirmed now.
 
Sunfly
Posts: 10
Joined: Tue Apr 17, 2012 2:22 am

RE: Air France-KLM Reports Quarter 1 Loss

Fri May 04, 2012 5:03 pm

It has always been rumoured that KLM is profitable and that Air France make heavy annual loses. Though 200 million euros is a very large profit, more than I would have imagined.

AF needs massive cost cutting to happen, I worry what is happening currently is not enough.