Air France-KLM expects to reach breakeven at start of FY2010/11

Air France-KLM CEO, Pierre-Henri Gourgeon, announced the following strategic developments (les Echos, 23-Sep-2009):

• Financial: Hopes to reach breakeven point at the start of FY2010 (commencing Apr-2010), excluding the impact of fuel hedging contracts. Mr Gourgeon stated he could not predict when the company will achieve profitability, adding that fuel hedging would continue to have a negative impact on the carrier in FY2010.
• Fuel hedging: The carrier plans to resume limited fuel hedging in Oct-2009. The carrier will hedge only 18 months ahead instead of four years in advance;
• Cash flows: Previously announced cost-cutting measures are expected to prevent cash flow deterioration over the European Spring;
• Capacity: Capacity would remain at current levels in 2010 and 2011;
• Traffic: Not expected to return to 2008 levels before 2012.