Heavy losses for AF/KLM

[airazurxtror]

According to the French newspaper "Libération", AF-KLM expects a loss of 300 million euros this year, which could rise to 500 million in 2012.

"Their cost structure is worse than their competitors', the economic environment is deteriorating and the price of oil is expected to remain high, so it's not surprising that the year 2012 will be worse than 2011, "said an analyst.

http://www.air-journal.fr/2011-12-23-ai ... 41536.html

[Air Key West]

Well, most airlines will have to prepare for a difficult future, especially in 2012 when the austerity measures throughout Europe will slow down the economy. Not only will governments have less revenue because citizens will have less money to spend (something they don't seem to realize), but a contraction of the economy will lead to difficult times for all airlines. The new European emissions tax will make tickets more expensive, leading in turn to a lower growth of passenger numbers and/or lower revenue for the airlines.
SN will probably still make a loss in 2012, but will hopefully be on the way to recovey (let's not forget that this year the loss is also due to a necessary heavy investment in the fleet). The also necessary upgrading of the long haul cabins will also cost money in 2012 and a return on investment will probably only be felt from 2013 onwards. My prediction, fwiw, is that probably only FR, U2 and LH will be making out all right in 2012. The new year will be difficult for all airlines (and many other companies). As far as I know, AF (more than KL I think) is not really a lean airline. So, they will have to take cost cutting measures, too, and I suspect that their employees will be among the first targets. So, we can probably expect AF empoyees to strike in 2012.

[regi]

So, we can probably expect AF empoyees to strike in 2012.

Yeah right, couldn't you keep your mouth shut? Now you give them ideas they have never thought about.