Air France-KLM has announced a loss for the year 2009-2010 of over one and a half billion euros, the worst since the group was formed in 2004. It follows on the heels of an 811-million-euro loss the year before. Cargo traffic was particularly badly affected.
However the airline says demand strengthened and revenues rose at the end of the fourth quarter, and it expects to break even this year, subject to costs caused by the Icelandic ash cloud.
One of the elements contributing to the loss was a 637-million-euro hit on hedges on the price of fuel.
The company is not paying a dividend. CEO Pierre Henri Gourgeon said, with the Rio-Paris crash of an Airbus A330 in June which cost 228 lives, that 2009-10 would go down as the company’s “annus horribilis”.