Air France-KLM foresees large operating loss for 2008-2009

Air France-KLM foresees large operating loss for 2008-2009Paris - French-Dutch carrier Air France-KLM said on Thursday that it expects to register an operating loss of about 200 million euros (270 million dollars) for fiscal year
2008-2009 because of the effects of the economic crisis and variations in the cost of crude oil.

If confirmed, it would represent the first such negative result for the company since it was formed in 2003.

Air France-KLM is also pessimistic for 2009-2010, "which will begin in the context of an unprecedented crisis," the company said in a statement.

Air traffic continues to plunge because of the global recession, with air passenger traffic falling by 10.1 per cent in February, the International Air Transport Association said Thursday.

As a result, Air France-KLM has reduced passenger capacity by 3.4 per cent and cargo capacity by 15 per cent, and therefore expects a decline of 6 per cent in its turnover for fiscal year 2009-2010.

The company's fiscal year ends on March 31. Official results are to be made public on May 19. (dpa)

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