Air France-KLM hit by rising fuel costs, political unrest

Air France-KLM hit by rising fuel costs, political unrest

Air France-KLM has recorded a €212 million net loss for the three months to June 30th, as rising fuel costs, political unrest in the Middle East and Japan’s nuclear disaster hit earnings.

However, the figure is down from €252 million lost in the same quarter of 2010, with the airline maintaining it will make a modest profit in 2011 as a whole.

Revenue at the airline – the largest in Europe by revenue - rose 8.7 per cent to €6.22 billion.

Passenger numbers were also up 9.4 per cent year-on-year. However, load factors fell 0.5 per cent to 81.1 per cent.

Looking ahead Air France added the European debt crisis to a list of jitters affecting business travel and the movement of goods.

“The operating environment remains uncertain due to the situation in Japan, Africa and the Middle East and the euro zone crisis,” the group said in a statement.

“Moreover, fuel prices are still at high levels and the euro remains volatile.”