Air France KLM has reduced its losses to 155 million euros ($178 million) in the first quarter of 2015 and the cargo division has also seen improvements.
The net loss has fallen compared to 559 million euros in the first quarter of 2015 while the cargo division’s operating loss was 50 million euros compared to 63 million euros last year.
Air France chairman and chief executive officer, Alexandre de Juniac says: “Air France-KLM is continuing to deliver a clear improvement of its financial indicators in the First Quarter 2016, leading to a significant increase of its operating result while continuing to reduce its net debt.”
KLM president and CEO, Pieter Elbers adds: “The results for the first quarter of 2016 are good for both AFKL and KLM. They show that KLM is on course with its five-year Perform 2020 plan.”
“The improving trend that was set in motion in 2015 has persisted through to the first quarter of 2016. Once again, a combination of lower fuel costs, additional earnings and reduced unit costs.”
Cargo tonnage has fallen by 8.4 per cent to 276,000 tonnes and cargo revenue is down by 16.3 per cent to 492 million euros. The airline group says it continues to suffer from overcapacity, especially from Asia to Europe.
As part of the Perform 2020 programme, Air France KLM will only operate five freighters by the end of 2016, having retired one Boeing MD-11 Freighter during the quarter.