No surprises as European airlines continue to decline

Air France-KLM has reported a full-year loss with a warning that results for the current six months will show a further deterioration. The airline posted a net loss of €809m ($1.06bn) from a pro €289m profit in 2010. Revenue at the carrier, increased 4.5% to €24.4bn and traffic was up 6.6%. “2011 was a tough year due to the uncertain operating environment and high fuel prices,” the airline said in a statement. Air France-KLM stated that it will increase capacity by no more than 2% in each of the next three years, with fleet spending also seemingly capped, there is