English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Air France loss as KLM profits

AMSTELVEEN: The Air France-KLM Group continues its slide towards a dénouement after reporting a net loss of -€535 million for 2014 following the previous year's -€463 million deficit.

Air France reported annual gross revenues of €15.58 billion, down 3.4 percent from 2013, and an increase in its net loss from -€174 million to -€314 million, much of which it attributes to a 14-day pilot strike.

KLM, on the other hand, produced revenue of €9.64 billion in 2014, half a percent point less than the previous year, and a net profit of €175 million – down from a €301 million profit in 2013.klm SPL

At group level, adjusted net debt fell from €11.7 billion to €11.5 billion following a reduction of €200 million in long-term aircraft lease liability. The cost of financing group debt fell 7.3 percent during the year to -€446 million – nearly wiping out KLM's profit for the past two years in interest payments.

Air France-KLM says because 2015 looks "uncertain", almost all of the expected savings on its fuel bill "could be offset by unit revenue pressure and negative currency impacts". Therefore it is reducing the investment budget by €600 million in 2015/2016; making 800 Air France staff redundant this year; and reducing unit costs by €250-€350 million by the end of 2015.

"Transform 2015" - the group's catchy term used for cost reduction – is now being replaced by "Perform 2020" under which it will develop a passenger hub business based on an upgraded product offer; increase its customer focus; ensure a stronger positioning of brands; and reinforce its strategic partnerships – one of which is Etihad.

The group says it also plans "a return to operating breakeven by 2017 by further optimizing its point-to-point operations with the creation of a single business unit". In addition to expanding its Transavia low-cost subsidiary to compete with Ryan Air, easyjet, Pegasus, Vueling et al, Air France-KLM says it will also complete the "finalization of the cargo repositioning" adding that negotiations with KLM unions are "ongoing" – presumably in relation to Martinair pilots as a result of the previously-announced phasing out of nine freighters by 2016.

Group cargo tonnage fell 2.9 percent in 2014 to 1.3 million tonnes; RTKs fell 2.4 percent compared to 2013; load factor remained the same at 63 percent; and revenues fell 4.8 percent year-on-year to €2.68 billion. The operating result increased to -€212 million from -€202 million in 2013.

The group blames the continuing losses in its cargo unit to "weak global trade and structural air cargo industry overcapacity". It says it plans to return to an operating breakeven in 2017 with five full freighters. Presumably before then it will have a new cargo head to replace Erik Varwijk who leaves next month.

News

Written on 17/01/2018, 21:42
seat-builds-spain-s-tallest-logistics-warehouseBARCELONA: January 15, 2018. Car manufacturer SEAT (Sociedad Española de Automóviles de Turismo) is constructing a new automated logistics center to store...
Written on 17/01/2018, 17:44
maersk-and-ibm-form-blockchain-companyCOPENHAGEN/ARMONK, NY: January 16, 2018: A.P. Møller - Mærsk and IBM are to establish a joint venture to leverage blockchain technology for global...
Written on 16/01/2018, 21:36
uk-roro-freight-depends-on-future-eu-accessLONDON: January 16, 2018. The UK short-sea ferry industry is spending over £1 billion on new ships, port and service facilities in the next four years,...
Written on 13/01/2018, 20:38
germany-to-allow-longer-trainsBERLIN: January 09, 2018. German railway operators have welcomed a decision by the federal government to allow more 740-meter trains to operate. Currently...
Written on 13/01/2018, 18:53
boeing-launches-electric-cargo-droneCHICAGO, January 10, 2018. Boeing is developing a 500lbs–payload electric vertical-takeoff-and-landing (eVTOL) drone for future cargo and logistics...
Written on 13/01/2018, 18:49
amazon-expands-at-cincinnati-hubSEATTLE: January 12, 2017. Dave Clark, senior vice president Operations for Amazon Prime Air, says the company has just added 210 acres to its future air...
Written on 10/01/2018, 22:50
disasters-cost-the-u-s-economy-us-306-billion-in-2017DENVER: January 09, 2018. According to the National Oceanic and Atmospheric Administration floods, tornadoes, hurricanes, drought, fires and freezes...
Written on 07/01/2018, 21:45
arizona-plans-bridge-not-wall-with-mexicoPHOENIX, AZ: January 06, 2018: As Donald Trump seeks US$18 billion from the U.S. Congress to build his border wall with Mexico, Arizona's Republican...
Written on 03/01/2018, 20:48
new-rail-line-delivers-first-containers-to-nairobi-from-mombasaNAIROBI: January 01, 2018. The new standard gauge rail (SGR) link between Nairobi and Mombasa saw the start of its first commercial freight service with...
Written on 03/01/2018, 16:57
eurozone-dominates-pmi-manufacturing-index-growthLONDON: January 03, 2018. According to the final IHS Markit Purchasing Managers' Index (PMI) for 2017, eurozone manufacturing reached 60.6 in December,...
Written on 18/12/2017, 23:19
dhl-underwrites-good-shipping-optionBONN: December 18, 2017. DHL Global Forwarding has signed an exclusive MoU with the Good Shipping Program. The company wants to decarbonize the ocean...
Written on 13/12/2017, 22:14
corruption-pervasive-in-trump-white-houseBERLIN: December 13, 2017. A new survey by ethics watchdog Transparency International says 44 percent of Americans now believe that corruption is...
Written on 13/12/2017, 22:07
banks-to-test-blockchain-for-sustainable-supply-chainsLONDON: December 13, 2017. The University of Cambridge Institute for Sustainability Leadership (CISL), supported by Barclays, BNP Paribas, Sainsbury's,...
Written on 13/12/2017, 21:38
shipt-a-target-for-us-550-millionMINNEAPOLIS: December 13, 2017. American bricks-and-mortar retailer Target Corp. is to purchase Shipt, an online same-day domestic delivery platform, for...
Written on 11/12/2017, 18:20
deutsche-bahn-subsidiary-regrets-rastatt-rail-closureDUSSELDORF: December 11, 2017. Speaking at meeting of rail operators last week, DB Netz CEO Frank Sennhenn expressed regret for his company's involvement...
Written on 10/12/2017, 22:44
rolls-royce-to-test-remote-controlled-shippingPARIS: December 06, 2017. The European Space Agency (ESA) and Rolls-Royce have signed an MoU to investigate how space technology can be used to develop...
Written on 08/12/2017, 20:10
beijing-continues-to-cut-carbonNAIROBI: December 06, 2017. According to an Assessment Report on Beijing Capital Airport, released during the third UN Environment Assembly in Nairobi...
Written on 07/12/2017, 20:53
bollore-begins-rail-renovation-between-cote-d-ivoire-and-burkina-fasoABIDJAN, Côte d'Ivoire: December 04, 2017. SITARAIL, a Bolloré Transport & Logistics subsidiary, has begun upgrading the rail link between Abidjan and...
Written on 07/12/2017, 19:53
innovative-dry-bulk-handling-at-port-of-rigaRIGA, Latvia: December 06, 2017. The Baltic port of Riga says it has become the first in Europe to use containerized dry bulk handling technology. Rīgas...
Written on 06/12/2017, 21:57
azerbaijan-railways-gets-us-400-million-upgradeMANILA: December 06, 2017. The Asian Development Bank (ADB) is providing loans to Azerbaijan Railways totaling US$400 million to improve governance and...

- powered by Quickchilli.com -