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Air France-KLM Revenue Drops; Company Remains OptimisticJuly 24, 2009 By: Jena Tesse Fox
Air France-KLM has reported a 21 percent drop in revenue in the April-June quarter but said it expected an improvement in both passenger and cargo divisions in the current quarter.
The cautiously optimistic outlook compares with a statement in May when the Franco-Dutch airline said it expected little visibility over the second quarter.
The 21 percent fall took revenues down to $7.37 billion, as the global recession took full hold. Revenue in its passenger business fell 19 percent to $5.7 billion, on a 5 percent drop in capacity and a 6 percent drop in traffic.
Its cargo business remained particularly hurt by the crisis, with revenue plunging 42 percent to $772.5 million, with a decline in cargo traffic of 23 percent and a 17 percent reduction in capacity.
“We maintain our assumption of a more limited deterioration in the second quarter and stability in the last two quarters, with even a slight improvement at the end of the (fiscal) year compared with the second half 2008-09, itself already impacted by the crisis,” the company said in a statement.
Air France-KLM added that it still plans to release full fiscal first-quarter financial results on July 30, after the close of the French stock market.