Air France-KLM reports first loss
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Air France-KLM has posted its first annual loss since its 2003 merger. The Franco-Dutch carrier recorded a net loss of EUR814 million (US$175 million) for the fiscal year ending 31 March 2009. This compared to a profit of EUR756 billion for the previous fiscal year. Revenue for the year declined marginally, down 0.6% to EUR24.1 billion. The airline’s fuel bill recorded a EUR1.1 billion (+24.7%) rise to EUR5.70 billion following a 9% increase in price after hedging.
In a statement, the airline said that despite a resilient first half performance, full-year results were affected by a sharp downturn in the second half, and especially the fourth quarter. Despite implementing cost-saving measures amounting to EUR185 million in Q4, Air France-KLM posted an operating loss of EUR505 million for this quarter alone. And according to Pierre-Henri Gourgeon, the carrier’s Chief Executive Officer, the year ahead is likely to follow-on from the tough conditions of Q4.
“The current year is likely to be equally challenging,” Gourgeon said in a statement. “We will therefore continue our strategy of adapting capacity and costs, while at the same time reinforcing our fundamentals, notably via the strategic partnership with Alitalia and the North Atlantic joint venture with Delta. Our responsiveness will continue to help us face up to the current challenges while ensuring we are prepared for the economic recovery.”
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