Air France-KLM Group has widened its full year net loss of €809m in 2011 to a loss of €1.2 billion last year.
The loss was due to exceptional items, including a €471 million restructuring provision, a €173 million goodwill write-down from the acquisition of VLM Airlines and a €97 million gain from the sale of Amadeus shares. The airline was also hit by €100 million non-cash hit charge due to changes in pension reporting rules.
Revenue increased by 5.2% to €25.6 billion and operating expenses rose by a similar amount (4.9%) to €25.9 billion, which caused an operating loss of €300 million.
“We have reduced our losses and revenues have held up well. We are beginning to see the initial results of our Transform 2015 restructuring plan,” said Air France-KLM Group executive VP finance Philippe Calavia.
Calavia stated that the group’s operating losses narrowed by €112 million during the second half of the year, which was good but requires more work and the airline is set on reducing its net debt.
Passenger traffic was up during the year by 2.1% to 223.9 billion RPKs, with capacity up only slightly (0.6%) to 269.3 billion ASKs. The load factor for the airline group was a record high at 83.1%.
Yield rose 4.4% to 8.6 cents as RASK increased 5.9% to 7.15 cents and CASK increased 4.9% to 7.24 cents. CASK ex-fuel and currency exchange fluctuations, and the pensions hit was 1.1% down.
Air France-KLM widens net loss
