Air France-KLM expects 200 mn euro loss

Air France-KLM expects 200 mn euro loss
AFP
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First Published: Fri, Mar 27 2009. 12 52 AM IST
Updated: Fri, Mar 27 2009. 12 52 AM IST
Paris: Air France-KLM, Europe’s biggest airline, said on Thursday it expected a €200 million ($270 million) operating loss for its financial year, which runs to the end of the month.
It would be the first time the group has posted a loss since its creation by a merger of Air France and Dutch group KLM in 2003.
“The evolution of the net result will depend on the valuation of hedging instruments based on market values at 31 March 2009,” the airline said in a statement.
It said that like other airlines, it has suffered from a sustained decline in activity since the beginning of 2009 due to the deepening financial crisis. “Financial year 2009-10 will begin in a context of unprecedented difficulty, with little visibility on how the economy will evolve and on the volatility of factors such as currencies and the oil price,” chief executive Pierre-Henri Gourgeon said in the statement.
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First Published: Fri, Mar 27 2009. 12 52 AM IST