Cargo revenues continue to decline at Air France-KLM as the company prepares to further reduce its freighter fleet.
The group’s first half cargo revenue was 1.34 billion euros, 4.3 per cent less than January to June 2013. The second quarter revenue was down 5.1 per cent to 669 million euros.
Across all of Air France-KLM’s metrics, except the load factor, the cargo business suffered falling figures from 2.1 to 5.1 per cent compared to 2013. The load factor only crept up 0.3 percentage points to 63.2 per cent, this is despite capacity being reduce with aircraft being parked.
Air France-KLM’s combined cargo fleet stands at 18, but only 14 are operational. In October 2013 it decided to reduce its Amsterdam-based freighters by eight. So far, Air France has parked an Airbus A320 and Martinair, one Boeing 747-400 Extended Range Freighter and two Boeing 747-400 Boeing Converted Freighters.
On 14 July, Air Cargo Week reported that the group was considering selling its all-cargo airline, Martinair, which is based in Amsterdam. The half-year statement says: “the group is now looking to further reduce its Amsterdam-based full-freighter exposure either through a partnership with a third party or through internal restructuring.”
In its second quarter the group claims to have reduce its freighter capacity by 8.6 per cent. The carrier explains the load factor increase because of a fall in traffic. The group says it is recording what it calls an, “impairment charge,” of 106 million euros. Overall, Air France-KLM’s first half revenue was 12 billion euros, up one per cent on 2013. The net result is a loss of 614 million euros, which is an improvement of 185 million euros on 2013. The group is predicting a, “tough operating outlook,” for the remainder of 2014.
