Air France-KLM reports a full-year loss

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By admin February 23, 2015 14:42

Air France-KLM reports a full-year loss

Air France-KLM has posted a full-year net loss of €198 million. The airline group has been impacted by the 14-day strike last September, which cost €425million, a sluggish economic environment and negative foreign exchange effects. Still, the €198 million loss was a marked improvement on a €1.2 billion net loss for 2013.

“The full year 2014 results speak for themselves: Despite the challenging economic and competitive context, once corrected for the impact of the Air France pilot strike, EBITDA is up by more than 50% in three years,” Air France-KLM chairman and CEO Alexandre de Juniac said.

Long-haul overcapacity contributed to a 2.4% fall in revenue to €24.9 billion, which produced an operating loss of €129 million. The airline group posted a €130 million operating profit in 2013. Passenger traffic for the group rose 0.5% to 229.3 billion RPKs on the back of a 0.6% fall in capacity to 270.8 billion ASKs. The load factor for the group rose 0.9 percentage points to 84.7%. Yields fell 3.1% to 8.15 cents as RASK lowered 2% to 6.9 euro cents and CASK decreased 0.7% to 6.93 euro cents.
The fall in revenue was more keenly felt at Air France, which fell 3.4% to €15.6 billion, with operating losses rising to €314 million. Taking out the impact of the 14-day strike, revenues fell 0.4% to €16.1 billion that would have allowed Air France to make a €99 million operating profit.

KLM revenue, however, fell very slightly by 0.5% to €9.6 billion, with an operating profit falling from €301 million in 2013 to €175 million.

KLM president and CEO Pieter Elbers said: “Air France has achieved significant a cost savings improvement over the last three years. KLM also achieved a lot in the first two years, but this has flattened out. The revenue environment is volatile, so we need to have all our focus on our unit costs.”

admin
By admin February 23, 2015 14:42