Fuel costs wipe out quarterly improvement in traffic
Air France-KLM Group announced this morning that its first-quarter operating loss had widened to €597 million, up from €403 million for the same period last year. Analysts at Bloomberg had predicted a loss of €510 million.
Despite cost-saving measures set out in the group’s Transform 2015 program, losses for the first half of the year are now more than likely to exceed the H1 2011 figure of €548 million. The group expects its fuel costs in 2012 to be €1.1 billion more than last year, cancelling out the effects of a recent rebound in traffic. Difficult talks with French unions are scheduled to start after the presidential elections.