Air France-KLM sees return to profit this year

26th October 2010, Comments 0 comments

The French-Dutch carrier Air France-KLM said Tuesday it expected to return to profit during the current fiscal year after suffering a record 1.28-billion-euro (1.78-billion-dollar) operating loss in the previous period.

"Given the revenue performance of recent months together with the current level of forward bookings, the group is revising upwards its operating result objective for the financial year to March 31 2011, which will be positive, except in the case of a major adverse event," chief executive Pierre Gourgeon told the company's executive board.

The carrier in late July said it expected to break even in the current fiscal year, excluding the impact of the Icelandic volcanic ash cloud that closed airspace in Europe and imposed a loss on Air France-KLM of 158 million euros.

The company last year suffered in the worldwide economic downturn, when passenger and freight volumes fell.

In response the carrier sharply cut back on capacity and restructured its freight unit.

© 2010 AFP

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