Air France-KLM reports halving of losses

Air France-KLM reports halving of losses 

Air France-KLM reported an ‘adjusted’ operating loss of €342 million for the six months to the end of June, halving its losses of a year ago.

The carrier has suffered six consecutive years of losses and issued a profit warning earlier this month which triggered a plunge in its share price.

Air France-KLM chairman Alexandre de Juniac blamed “a tough operating environment” and “industry overcapacity on certain long-haul routes, notably North America and Asia”.

However, de Juniac said the carrier “maintained the momentum of its recovery in the first half of 2014”.

The airline recently announced plans to cut 700 cabin crew, having cut 1,660 ground staff since October.

It reported a 1.8% fall in half-year revenues, but said turnover would have been 1% up without a decline in the value of the euro year on year.

Passenger traffic was up 2.5% against a capacity increase of 1.2%, with the group reporting “strict capacity discipline”.

The half-year losses were split unevenly between the group’s two main carriers, Air France and KLM, which merged in 2004.

Air France reported an operating loss of €180 million from revenue of €7.6 billion and KLM an operating loss of €34 million out of a turnover of €4.56 billion.

Sourced from Travel Weekly

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