Business

Air France-KLM sees profits fall

Air France-KLM made an operating loss of 353m euros (£295m) in 2011, after a profit of 28m euros in 2010.

And it said a soaring fuel bill, which rose by 16.3% to 6.4bn euros, would hit the airline's profits this year.

"The economic outlook remains uncertain while the fuel price remains at a record level in euros," it said.

In January it said it would cut debt by 2bn euros by 2015, and shrink its fleet by cutting more than 1bn euros from a planned expansion project.

Shares in Air France-KLM have lost about 65% of their value in the past year.

After the financial results were released they were ahead by 1.27% in early Paris trade.

Its annual figures for 2011 also showed a net loss of 809m euros for the group, which was created in 2004.

Fuel prices were expected to increase by a further 1.1bn euros in 2012, it added.

"The 2011 year was difficult for the group because of an uncertain economic environment and a large increase in the price of fuel," said group head Jean-Cyril Spinetta.

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