Air France-KLM first half cargo revenue falls 0.5pc to US$1.2 billion
THE Air France-KLM Group's cargo capacity and volumes increased 0
THE Air France-KLM Group's cargo capacity and volumes increased 0.7 per cent during the first half to 549,000 tons, but revenue fell 0.5 per cent year on year to EUR1.08 billion (US$1.2 billion).
The group blamed the global economic slowdown, trade disputes and an overall high level of air freight capacity across the industry for a 5.7 per cent drop in unit revenue per available tonne-km. Both the North American and Asian networks posted declines.
In response to these developments, the group will focus on increasing its load factors while rationalising capacity.
'In recent years, Air France-KLM has significantly rationalised its full freighter business to concentrate on transporting cargo in the bellies of passenger aircraft. This generates revenues that are key when it comes to balancing the profitability of the group's routes,' said the company.
'To seize opportunities in the air freight market, Air France-KLM continues to rescale its activity, focused on the utilisation of long- and medium-haul aircraft bellies. The group is putting the emphasis on digitisation and the simplification of processes, and on a high level of service quality,' it said.
During the first half, the operating result for Air France-KLM's combined passenger and cargo businesses stood at EUR12 million in the first half 2019 - EUR138 million lower than in the same period of 2018.