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Air France-KLM reports fall of revenue in Q2

Xinhua, July 27, 2016 Adjust font size:

Air France-KLM suffered a decline of revenue in the second quarter of 2016 amid a continuing set of difficulties and uncertainties, the Franco-Dutch airline announced on Wednesday.

Revenue in the second quarter of 2016 amounted to 6.215 billion euros (6.834 billion U.S. dollars), a decrease of 5.2 percent (down 3.7 percent like-for-like) compared to the 6.558 billion euros in the same period one year ago. Air France-KLM noted a clear deterioration during the second quarter.

The figures were impacted by the geopolitical and economic environment and a continuing increase in airline industry capacity. Currencies had a negative 104 million euro impact on revenues. The fuel prices had a positive impact. The fuel bill amounted to 1.167 million euros in Q2, down 29.7 percent (down 27.6 percent like-for-like).

EBITDA in Q2 was 728 million euros, compared to 557 million euros in the second quarter of 2015. The net result, group share, was 41 million euros in the second quarter, compared to a net loss of 79 million euros in Q2 of 2015.

"The global context in 2016 remains highly uncertain," Air France-KLM stated in a press release, "regarding the geopolitical and economic environment in which we operate, fuel prices and the continuation of the overcapacity in the airline industry resulting in an increasing pressure on unit revenues and a special concern about France as a destination."

The Franco-Dutch airline named Brexit as one of the geopolitical and economic uncertainties and the terrorist attacks in Europe as a major threat. The consequences of the recent terrorist attacks in France are not in the Q2 figures, but contribute to the uncertainty on France.

The economic environment will, according to Air France-KLM, remain weak in several key markets including Brazil and oil routes.(1 euro= 1.10 U.S. dollars) Endit