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Air France-KLM's weak cargo figures to be hidden in overall financial results
AIR FRANCE-KLM plans to merge the financial performance of its struggling cargo business within the overall financial results of the wider AF-KLM airline's operations and calculated on the basis of the cargo business's "contribution margin."
"It has been decided to change the cargo reporting as per fiscal year 2017 based on contribution margin and to include it in the passenger network results. This change will be effective as from the Q1 2017 results presentation," reported New York's Air Cargo World.
The carrier's cargo business posted operating losses of EUR244 million (US$257.46 million) for 2016, practically the same as 2015's full-year operating loss of EUR245 million on a 14.7 per cent year-on-year decline in cargo revenue to EUR2.06 billion. AF-KLM blamed "weak global trade and structural industry overcapacity, and to maximize its contribution to the group."
Cargo tonnage in 2016 declined by 6.2 per cent to 1.13 million tonnes, with revenue tonne kilometres down 6.3 per cent year on year.
AF-KLM Cargo cut freighter capacity last year by 24 per cent, reducing the number of freighters in operation to six. Freighter operating losses were reduced by EUR14 million, compared with the previous year, resulting in a full-year 2016 operating loss of EUR28 million for the company's freighter activities.
"It has been decided to change the cargo reporting as per fiscal year 2017 based on contribution margin and to include it in the passenger network results. This change will be effective as from the Q1 2017 results presentation," reported New York's Air Cargo World.
The carrier's cargo business posted operating losses of EUR244 million (US$257.46 million) for 2016, practically the same as 2015's full-year operating loss of EUR245 million on a 14.7 per cent year-on-year decline in cargo revenue to EUR2.06 billion. AF-KLM blamed "weak global trade and structural industry overcapacity, and to maximize its contribution to the group."
Cargo tonnage in 2016 declined by 6.2 per cent to 1.13 million tonnes, with revenue tonne kilometres down 6.3 per cent year on year.
AF-KLM Cargo cut freighter capacity last year by 24 per cent, reducing the number of freighters in operation to six. Freighter operating losses were reduced by EUR14 million, compared with the previous year, resulting in a full-year 2016 operating loss of EUR28 million for the company's freighter activities.
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