Air France KLM has reduced its cargo losses to 116 million euros ($127.5 million), and continues in its aim of returning the freighter business to breaking even in 2017.

The first half cargo loss was reduced from 116 million euros in the same period of 2015, while losses in the second quarter were reduced to 66 million euros from 78 million euros in 2015. Cargo revenue was down 15.7 per cent in the first half to one billion euros and the second quarter declined by 16.1 per cent to 507 million euros, due to weak global trade and overcapacity.

Air France KLM says: “The Group continued to restructure its cargo activity to address the weak global trade and structural air cargo industry overcapacity. During Second Quarter 2016, full-freighter capacity was thus reduced by 16 per cent, leading to a decrease in total cargo capacity of 3.2 per cent.”

Tonnage fell by 6.5 per cent during the first half to 558,000 tonnes, and to 282,000 tonnes in the first half from 295,000 tonnes in the same period of 2015.

The Group continued to cut back its freighter fleet, retiring one Boeing MD-11 Freighter in the first quarter, with two more going in the first week of July. It says the freighter business should break even in 2017.

Air France KLM as a whole reduced losses to 114 million euros in the first half of 2016, compared to 638 million euros last year. In the second quarter it made a profit of 41 million euros, compared to a loss of 79 million euros in the same period of 2015.