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20-May-2010 12:19 PM

Air France-KLM remains deeply in the red, targets break even in FY2011

Air France-KLM revenue eases 0.8% - financial/traffic highlights:

  • Three months ended 31-Mar-2010:
    • Revenue: EUR5,021 million, -0.8% year-on-year;
    • Costs:
      • Labour: EUR1,843 million, +1.3%;
      • Fuel: EUR1,240 million, +9.3%;
    • Operating profit (loss): (EUR497 million, compared with a loss of EUR535 million in the previous corresponding period;
    • Net profit (loss): (EUR691 million), compared with a loss of EUR479 million in the previous corresponding period;
    • Passenger traffic (RPKs): +0.9%;
    • Passenger load factor: 78.8%, +3.3 ppts;
    • Passenger yield: EUR 7.93 cents, -1.6%;
    • Passenger revenue per ASK: EUR 6.25 cents, +2.7%;
    • Passenger cost per ASK: EUR 6.81 cents, +3.1%;
    • Cargo traffic (FTKs): +0.7%;
    • Cargo yield: +13.1%;
    • Cargo revenue per ATK: +30.9%;
    • Cargo cost per ATK: +4.0%;
  • 12 months ended 31-Mar-2010:
    • Revenue: EUR20,994 million, -15.0%;
    • Costs:
      • Labour: EUR7,388 million, -0.5%;
      • Fuel: EUR4,725 million, -21.8%;
    • Operating profit (loss): (EUR1,285 million), compared with a loss of EUR186 million in the previous corresponding period;
    • Net profit (loss): (EUR1,559 million), compared with a loss of EUR811 million in the previous corresponding period;
    • Passenger traffic (RPKs): -3.2%;
    • Passenger load factor: 80.7%, +1.0 ppt;
    • Passenger yield: EUR 7.65 cents, -10.8%;
    • Passenger revenue per ASK: EUR 6.17 cents, -9.7%;
    • Passenger cost per ASK: EUR 6.46 cents, -4.6%;
    • Cargo traffic (FTKs): -13.7%;
    • Cargo yield: -17.0%;
    • Cargo revenue per ATK: -14.4%;
    • Cargo cost per ATK: +3.3%. [more]

Air France-KLM Board will not propose a dividend payment for FY2010. Meanwhile, the carrier estimates a loss of EUR260 million in revenue and EUR160 million in operating income from the volcanic disruptions in Iceland.

Air France-KLM: “2009-10 will go on record as our ‘annus horribilis’. The global economic crisis had a profound effect on the entire airline industry … We have launched a robust action plan, based on three pillars: controlling capacity and investments; adapting our business models in passenger and cargo; and strengthening our alliance and partnerships. These actions have started to bear fruit and will enable us to emerge from the crisis with a young fleet, a rejuvenated product offer, adapted to the needs of our customers, and a preserved financial position. We are therefore maintaining our objective of operating break-even for the current financial year excluding the impact of pre-2009 fuel hedges, and subject to the definitive cost of the closure of European airspace,Pierre-Henri Gourgeon, CEO. Source: Air France-KLM, 19-May-2010.

Air France-KLM: "For the current year, the group’s priorities are to control costs via headcount reduction, and to restore unit revenues by limiting capacity growth (+1% for passenger and zero for cargo),” Company statement. Source: Air France-KLM, 19-May-2010.

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