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Air France-KLM cargo narrows quarterly loss while widening yearly loss
AIR FRANCE-KLM narrowed its cargo loss in the fourth quarter of 2015 to EUR23 million (US$25.5 million) while widening its full-year loss 15.5 per cent to EUR245 million.
The troubled cargo division continued to scale back its freighter operation as revenue fell 16.6 per cent to EUR612 million, reported London's Air Cargo News.
Traffic was down 7.7 per cent at 309,000 tonnes (340,614 tonnes) for a full-year total of 1.2 million tonnes, a 7.5 per cent decline on 2014.
The carrier slashed full-freighter capacity by more than 23 per cent during the year by phasing out five aircraft.
This helped to cut the loss of the all-cargo fleet to EUR42 million against EUR55 million lost in 2014.
Once Europe's top cargo carrier, Air France-KLM plans to operate only five freighters by the summer, down from 13 in 2013 and 26 when the French and Dutch airlines merged in 2005.
"This reduction should enable the full-freighter business to return to operating breakeven in 2017," the carrier said.
Despite cargo losses, Air France-KLM posted its first annual operating profit since 2010 - EUR816 million in 2015 compared to a EUR129 million loss in 2014.
This was also the first net profit since 2008 - EUR118 million in 2015 compared with a EUR225 million net loss in 2014 with gains being attributed to cost cutting and a 22 per cent lower fuel bill.
The carrier earned EUR816 million before interest and tax compared with a EUR129 million loss in 2014 that was impacted by the EUR330 million cost of a pilots' strike.
There was a 2015 net profit of EUR118 million compared with a EUR225 million net loss in 2014 - all drawn on revenues EUR26.1 billion, up 4.6 per cent.
The troubled cargo division continued to scale back its freighter operation as revenue fell 16.6 per cent to EUR612 million, reported London's Air Cargo News.
Traffic was down 7.7 per cent at 309,000 tonnes (340,614 tonnes) for a full-year total of 1.2 million tonnes, a 7.5 per cent decline on 2014.
The carrier slashed full-freighter capacity by more than 23 per cent during the year by phasing out five aircraft.
This helped to cut the loss of the all-cargo fleet to EUR42 million against EUR55 million lost in 2014.
Once Europe's top cargo carrier, Air France-KLM plans to operate only five freighters by the summer, down from 13 in 2013 and 26 when the French and Dutch airlines merged in 2005.
"This reduction should enable the full-freighter business to return to operating breakeven in 2017," the carrier said.
Despite cargo losses, Air France-KLM posted its first annual operating profit since 2010 - EUR816 million in 2015 compared to a EUR129 million loss in 2014.
This was also the first net profit since 2008 - EUR118 million in 2015 compared with a EUR225 million net loss in 2014 with gains being attributed to cost cutting and a 22 per cent lower fuel bill.
The carrier earned EUR816 million before interest and tax compared with a EUR129 million loss in 2014 that was impacted by the EUR330 million cost of a pilots' strike.
There was a 2015 net profit of EUR118 million compared with a EUR225 million net loss in 2014 - all drawn on revenues EUR26.1 billion, up 4.6 per cent.
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