Air France-KLM Cargo lose €25m despite reduced capacity

By Freddie Pierce
Follow @Ella_Copeland Despite a decline in cargo traffic (-5.9 percent) Air France KLM recorded a virtually stable load factor (-0.2 points) for air ca...

Despite a decline in cargo traffic (-5.9 percent) Air France KLM recorded a virtually stable load factor (-0.2 points) for air cargo in 2012, following reductions in capacity (-5.6 percent). Unit revenue per available tonne kilometre (RATK) rose by 4.3 percent (+1.5 percent  ex-currency). However, weak volumes weighed on revenues which amounted to €791million (-1.4 percent).The operating result stood at -€25 million compared to break-even in 2011.

By following the strategic business plan Transform, Air France KLM has narrowed its operating loss to €300m for the 2012 financial year, a reduction of €53m compared to the previous year.

 The Board of Directors of Air France-KLM, chaired by Jean-Cyril Spinetta, met on 21st February 2013 to approve the accounts for full year 2012.  

Jean-Cyril Spinetta made the following comments: "The year 2012 was characterized by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price. Despite this very tough context, our results were in line with our expectations, with the first effects of the Transform plan enabling us to reduce the operating loss.”

According to Spinetta, 2013 will be crucial to the airline’s recovery,  which will see the “full implementation of all our projects”, which includes over 5,000 staff cuts, a ‘transformation of freight’, which will see full integration between Air France Cargo and KLM Cargo, and the restructuring of short and medium haul operations.

Key Details:

·         Net losses increased 47 percent to £1.19bn following a restructuring charge of €471m and a €890m increase in fuel bills.

·         Revenues rose 5.2% to €25.6bn.

·         Debt fell from €6.51bn to €5.97bn after sell-offs and spending cuts 


Featured Articles

LinkedIn reacts to AWS Supply Chain: too narrow in scope?

As AWS Supply Chain's is unveiled, LinkedIn reacts to the latest tool to offer value chain visibility, with some calling for a broader feature set

S&OP planning in a state of flux, say EY & KPMG

Sales & operations planning experts from EY & KPMG say although the process is designed to allow businesses to cope with change S&OP is itself in flux

Conference Board maverick driving sustainability change

Anuj Saush of the historic sustainability body The Conference Board is an agent for positive change in a world riven with disruption and discord

Automation & robotics – the future of sustainable logistics


Scoutbee & on making headway with supplier D&I


Cyber housekeeping 'stops most back door supply chain hacks'

Digital Supply Chain