Air France-KLM CEO forecasts operating loss to exceed EUR300m
Air France-KLM CEO, Pierre-Henri Gourgeon, informed the French National Assembly that the group may report an operation loss of EUR300 million-400 million for the 12 months to Mar-2011, due to losses related to fuel hedges (Bloomberg, 04-Jun-2010). Excluding the hedging losses, the carrier hopes to report an operating break-even result. The hedging losses come from pre-2009 purchases and are based on an oil price of USD85 per barrel. Mr Gourgeon, stated that even if the carrier reports no growth in 2010 it is possible it will recover momentum in 2011 (AFP, 06-Jun-2010). The CEO also stated he expects the aviation industry to recover to pre-2008 levels by 2012.