Franco-Dutch airline Air France-KLM SA (AFRAF.PK) Friday reported a narrower loss for its fourth quarter, benefited mainly by improved performance in passenger business and cost control. In cargo business, weak volumes weighed on revenues.
The Group said 2013 has started amid an uncertain environment with further volatility in fuel price and currencies. However, it expects to maintain strict control over capacity management and investments in 2013 and aims to reduce both unit cost at constant currency and fuel price and net debt.
Chairman Jean-Cyril Spinetta stated, "The year 2012 was characterized by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price. Despite this very tough context, our results were in line with our expectations, with the first effects of the Transform plan enabling us to reduce the operating loss."
In the passenger business, traffic was stable at 54,236 million. Capacity declined 0.2 percent and load factor improved 0.2 points to 81.9 percent.
Total passenger revenues increased 5.3 percent to 4.93 billion euros. Unit revenue per available seat kilometre or RASK rose 5.8 percent, while excluding currency, the increase was 3.4 percent. Operating loss in the passenger business was 137 million euros, compared to a loss of 224 million euros a year earlier.
Meanwhile, in the cargo business, traffic declined 5.9 percent, and capacity was down 5.6 percent. Load factor showed a 0.2 points decrease and stood at 67.4 percent. Operating result was a loss of 25 million euros, compared to break-even in 2011.
In the fourth quarter, net loss, group share narrowed to 235 million euros or 0.79 euros per share from 259 million euros or 0.88 euros per share in the previous year.
Excluding restructuring charges, net loss per share for the recent quarter was 0.52 euros, while the company posted 0.88 per share in the prior year. Operating loss was 143 million euros, compared to 202 million euros loss in 2011.
Quarterly revenues grew 4.6 percent to 6.30 billion euros, after a favorable currency impact of 2.3 percent.
Unit cost declined 0.9 percent from last year at constant currency and fuel price basis.
In Paris, the shares are currently trading at 8.40 euros, up 0.88 percent, on a volume of 1.12 million shares.
For comments and feedback: editorial@rttnews.com