Air France-KLM Swings to 4Q Net Loss on Pension Plan De-Risking
By Alberto Delclaux
Air France-KLM (AIR.FR) said Friday that it swung to a loss in the fourth quarter, dragged by a pension-related non-current expense of 1.43 billion euros ($1.75 billion).
The Franco-Dutch carrier posted a net loss of EUR977 million for the period, compared with a net profit of EUR362 million a year earlier. Sales rose 2.4% to EUR6.23 billion, supported by higher passenger traffic and unit revenue, while income from current operations was up 20% at EUR113 million.
The non-current expense resulted from the de-risking of the KLM pilot and cabin pension plans, the company said.
Air France-KLM said it is targeting unit-cost reduction of between 1% and 1.5% for 2018--at constant currency, fuel price and pension charges--and expects its fuel bill to increase by 150 million on year to EUR4.7 billion.
In 2018, it plans to increase capacity in available seat kilometers by between 3% and 4% for its passenger network, and by between 6% and 7% for budget airline Transavia.
For the first quarter, the carrier expects positive unit revenue growth on a constant-currency basis.
Write to Alberto Delclaux at firstname.lastname@example.org
(END) Dow Jones Newswires
February 16, 2018 01:29 ET (06:29 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.