Profits fall at Air France-KLM

Published:  9 Mar at 6 PM

As reported by the BBC, Air France-KLM experienced a loss of 353 million euros in 2011, after a 28-million-euro profit in 2010. It also reported that a soaring fuel expenditure, which went up by 16.3% to 6.4 billion euros, would affect its profits for 2012.

A spokesperson said the economic outlook remained uncertain as the fuel prices remained at a record high in euros. In January the airline said it would slash debt by 2 billion euros before 2015, and tighten its fleet by reducing over 1 billion euros from its planned expansion project.

Market shares in Air France-KLM lost nearly 65% in their value during the past year. When the financial results came out, they were ahead 1.27% during early Paris trade. The airline's yearly figures for 2011 revealed a net loss of 809 million euros as well, which began in 2004.

It also anticipated fuel prices rising by another 1.1 billion euros during 2012, adding that 2011 was difficult due to the uncertain economic environment combined with a large hike in the fuel price.