PARIS: The Air France-KLM Group has reported a net loss of €1.8 billion for the full year 2013 on almost unchanged revenues of €25.5 billion (2012: €25.4 billion).
The loss was an increase of €602 million during the year despite a continuing cost-cutting exercise described by Board chairman Alexandre de Juniac as "strict". The group's net debt fell from €5.96 to €5.34 billion.
The cargo division, still not coming up roses (right), produced a loss of €202 million – down €28 million from the previous year – on revenues of €2.8 billion, down from €3.05 billion in 2012. So there was a little less of a loss on much less revenue.
Despite an 11.5 percent reduction in full freighter capacity versus six percent planned at the beginning of the year, overall cargo capacity only dropped 2.7 percent due to an increase in belly space. At the same time traffic fell 4.6 percent.
de Juniac added: "2013 marked an important stage in the group's turnaround. We are clearly benefiting from the successful implementation of new working conditions and of the industrial plans adopted in all our businesses. The additional measures announced in October 2013 are being implemented in medium-haul and cargo, and will start to bear fruit in the second half. Thanks to the commitment of all its employees, the Air France-KLM Group is undergoing a profound transformation, and I am confident we will return to the path of profitable growth in 2014 and beyond."
By comparison the Lufthansa Group, due to report its 2013 results at the end of March, increased its adjusted operating result by 47 per cent in the first nine months of 2013 to €860 million - an increase of around €280m compared to the previous period. At the time, Christoph Franz, chairman and CEO commented: "The Lufthansa group has improved its result in the operating business for the first nine months of the year. In spite of substantial negative exchange rate effects and fewer flights, we have kept our revenue stable. We have also succeeded in reducing unit costs, in particular in our passenger business."
For the full year 2013, the company is forecasting an operating profit of €600 to €700m.