Air France-KLM’s cargo unit slipped to a $20.2 million operating loss in the three months through June from a $15.8 million profit a year ago, as the Japanese earthquake and tsunami snapped supply chains and excess capacity out of China eroded freight rates.
The Franco-Dutch carrier’s freight revenue grew 3.2 percent to $1.15 billion from $1.1 billion within the same period. Traffic rose 1.9 percent on a 6.2 percent increase in capacity, and the load factor declined by 2.8 percentage points to 66.7 percent.
The cargo business made a profit of $99 million in the fiscal year to March 31 against a year-earlier loss of $624 million.
Overall, Air France-KLM posted a $284 million net loss in April-June compared with a $1.06 billion profit a year ago, when earnings were inflated by the sale of a stake in the Amadeus booking system. The operating loss widened to $209 million from $190 million, mainly because fuel costs rose 16 percent and the Japanese earthquake and North African unrest resulted in a $145 million loss.
Revenue rose 8.7 percent to $8.96 billion.
Air France-KLM reiterated its earlier forecast of a positive operating result for the full year.
-- Contact Bruce Barnard at email@example.com.