April through June Traffic:
Overall traffic increased by 1 percentage point, whereas capacity increased by 3 percentage points. This resulted in a 76.0% load factor, which is a decrease of 2.1 percentage points compared to last year. Load factor decreased in the route areas North Atlantic, India and Asia Pacific.
Compared to last year traffic increased by 1% for both passenger and cargo business, whereas capacity increased by 3% and 5% respectively.
During this quarter the global economic downturn continued and had an increased impact on traffic and yield for the entire airline industry.
For KLM the resulting decline in revenues is especially apparent on the North Atlantic and Asia Pacific routes and affects both the Cargo and Passenger business.
Against this background we expect an operating income for the First Quarter -ending June 30, 2001- substantially below the EUR 100 million realized in the same period last year.
To mitigate the adverse impact of declining revenues a continued and increased focus on cost containment is necessary.
June Overall traffic:
Compared to last year June traffic increased by 2 percentage points, while capacity increased by 4%. Consequently, overall load factor decreased by 1.5 percentage points from 79.0% in June 2000 to 77.5% in June this year. Load factor decreased in the route areas North Atlantic, Asia Pacific and India, as a result of deteriorating economic conditions.
Passenger load factor increased by 0.1 of a percentage point to 82.2% in June 2001. Passenger traffic increased by 4 %, while capacity increased by 3%. The impact of the economic slowdown is most on North Atlantic, Asia Pacific and India routes, where traffic is clearly below the level of June 2000. Traffic increased significantly in the route areas Middle East, Africa, and Central & South Atlantic. In Europe passenger load factor improvement was mainly due to a growth in Economy Class. KLM`s World Business Class traffic is above last year in all intercontinental destinations except India, and below last year in Europe . The newly introduced World Business Class product is paying off and induces more passengers to select KLM.
Compared to last year cargo traffic remained the same, whereas capacity increased by 4%. Overall cargo load factor decreased by 3.3 percentage points to 67.3%, mainly due to a significant decrease in traffic from Asia to Europe, as a result of the economic slowdown. Lower traffic from Asia as well as to and from the USA was compensated by higher traffic in the areas Middle East & South East Asia, and Mid-Atlantic. Cargo traffic from Europe increased by 5%, and load factor increased by 1.2 percentage points.