Passenger revenues down 18.7%
Air France KLM today reported a net loss of €426m for the first quarter of its financial year, compared to a €211m profit for the same period in 2008.
The carrier said pre-tax income dropped by 86.2% from €814m in 2008 to €12m in the three months from April 1.
AF KLM said it made an operating loss of €496m this quarter compared with a €211m profit last year while its pre-tax loss plummeted to €612m against a profit of €211m in 2008.
The airline said it that global economic activity had stabilised at "unprecedentedly low levels, leading to a sharp decline in volumes and unit revenues."
It said passenger revenues were down by 18.47% and cargo revenue down by 41.5%. The group suffered a total loss of 20.5% in revenue.
The results of Q1 had also been hit by a "negative fuel hedging impact of €252m."
The one bright point in the Q1 results was that AF KLM said it had "strong liquidity" of €5.7bn.
AF KLM said "passenger activity" in the quarter was weak with a 5.8% decline in traffic.
A 4.7% reduction in capacity limited the decline in the load factor to 0.9 points at 79.4%.
The airline added: "As in previous months, the decline in premium class unit revenues was particularly pronounced, while in economy class they proved more resilient."
The airline said it was undertaking a review of its medium haul network and the decisions would be implemented at the start of 2010.
It said it was also continuing to "adapt" its number of employees.
It added: "If the scenario of a stabilisation in the global economy, followed by a gradual recovery at the end of 2009 is confirmed, the trend in unit revenues could be as follows:
"In the passenger business, a further deterioration in the second quarter, albeit at a slower pace than in the first.
"A stabilisation in the second half relative to the second half of 2008-09 which was already impacted by the crisis."