AIR FRANCE KLM: Financial Year 2008-09, AirFrance-KLM

Release Date: 2009-05-18

FY results reflect deteriorating operating environment in the second half

- Revenues stable at 23.97 billion euros
- Operating loss of 129 million euros

Fourth Quarter

- Revenues of 5.01 billion euros, down 12.2%
- Reduction in unit costs underpinned by the cost-savings plan
- Operating loss of 574 million euros, after negative impact of 243 million euros in respect of fuel hedges

The Board of Directors of Air France-KLM, chaired by Jean-Cyril Spinetta, convened on 19th May 2009 to approve the accounts for Financial Year 2008-09.

Pierre-Henri Gourgeon, Chief Executive Officer, made the following comments: "The financial year 2008-09 was one of contrasting halves, with a resilient performance in the first half, wiped out by the full force of the economic crisis in the second. Business traffic and cargo were especially affected, leading to a decline in revenues which accelerated in the fourth quarter. The sharp decline in oil prices had a negative impact on the fuel bill in the second half, whereas our hedging policy had been efficient in the first half. In the face of these unprecedented conditions we moved rapidly to lower capacity, reinforce cost-saving measures, reduce our investments and unwind part of our fuel hedges. The current year is likely to be equally challenging. Visibility remains low, even though we have seen some signs of stabilisation in recent weeks. We will therefore continue our strategy of adapting capacity and costs, while at the same time reinforcing our fundamentals, notably via the strategic partnership with Alitalia and the North Atlantic joint venture with Delta. Our responsiveness will continue to help us face up to the current challenges while ensuring we are prepared for the economic recovery.”

In view of the challenging environment, the Board decided not to propose a dividend in respect of Financial Year 2008-09.
Type: NORMAL
Company: AirFrance-KLM
Country: France
Url: http://corporate.airfrance.com/en/news/front-page-news/alaune-detail/index.html?tx_ttnews%5Btt_news%5D=4685&tx_ttnews%5BbackPid%5D=2&cHash=1109f9b07f
 
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