Air France-KLM reports first loss

Europe’s largest airline, Air France-KLM announced losses of €814 million for fiscal year 2008-09. In the last financial year, the group had announced around 2700 job cuts and further cuts ‘on similar lines’ are to be expected this year.

This is the first time the group suffered losses since it was formed in 2003.

Revenues have dropped 12 percent to €5.01 billion. Further, the Franco-Dutch group had warned in March that it was expecting an operational loss of around €200 million. However, in the last tally losses were €129 million.

Boeing 777 freighter

The company had posted a €756 million profit for the previous financial year.

Air France-KLM said it is reducing capacity by 4.5 percent in passenger travel and by 11 percent in cargo for its summer schedule and a reduction in the initial investment plan of 2.9 billion euros to 1.4 billion euros. The airline did not give a financial outlook for the year ahead but said it will continue to cut capacity and costs.