Airline hit by fuel hedging
Air France KLM posted an operating loss of €543m for the first six months of its financial year.
The figure compares with a €592m operating profit for the same period last year.
Europe's largest airline said revenue had dropped by 19.9% in the six months up to September 30 to €10,775m, compared to €123,445m in 2008.
In the six month, pre-tax earnings fell 63.5% from €1,826m in 2008 to €667m for this year.
For Q2, the three months up to September 30, AF KLM posted an operating loss of €47m, compared with profit of €391m in the same period in 2008.
Pre-tax earnings fell 45% from €1,012n m to €555m while revenue slipped 19.2% from €6,940m to €5,606m.
The airline said it would have made a profit in Q2 but for fuel hedging where it faced a charge of €179m.
Pierre-Henri Gourgeon, AF KLM's ceo, said: "After deep losses in the First Quarter, the Second was close to break-even despite the lack of recovery in unit revenues and a charge of €179m relating to the pre-2009 fuel hedges."
He said the airline had reacted quickly to the economic situation and cut passenger capacity.
It was among for savings of €700m for the year, €100m more than originally targeted.
This included cuts in staff and Mr Gourgeon said the carrier was now proposing a "voluntary redundancy programme involving 1,700 jobs, which will be effective in 2010".
He added: "Lack of visibility over the timing and strength of the economic recovery means we must pursue our efforts in terms of cost reduction.
"Our objective is to return to operating break-even, excluding the impact of the pre-2009 fuel hedges, by the beginning of the next financial year."
www.airfrance.com www.klm.com