Air France and KLM report losses

Air France-KLM said over the weekend it suffered a first quarter net loss of 368 million euros (US$485 million) as higher fuel prices continued to outpace increased revenues.

Airlines worldwide are reporting substantial declines in revenue while cutting costs by delaying aircraft purchases.

Sales in the three months to March rose 6.0% to 5.6 billion euros, it said, as passenger traffic proved satisfactory while cargo weakened due to the global economic slowdown.

Revenue gains were not enough to offset sharply higher fuel costs, which jumped 17.9% to 1.68 billion euros in the period, with the problem made worse by adverse currency exchange factors, Air France-KLM said.

It said it suffered a first quarter operating loss of 597 million euros, up from 403 million euros in first quarter 2011.

Air France-KLM posted a loss of 809 million euros for 2011.

Source - ttrweekly