Air France-KLM issues profit warning, announces reorganisation

Airline group Air France-KLM will post a loss this year due in part to fluctuating fuel prices and currency effects, the company said in a statement on Wednesday evening.


The political crisis in the Arab world and the Japanese earthquake will also impact on full year figures.
The group booked net profit of €14m in the third quarter, compared with €290m in the year earlier period. Turnover grew over 2% to €6.8bn.
New priorities
In a statement, board chairman Jean-Cyril Spinetta said the new management will focus on three priorities.
‘The first is the re-establishment of the Group’s competitiveness, implying additional cost savings. The second is the restructuring of our short and medium-haul activity. The third is a rapid reduction in our debt,’ the statement said.
The plans will be presented in the first quarter of next year.
According to KLM’s director Peter Hartman, quoted by news agency ANP, the reorganisation will hit Air France harder than KLM.

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