Following years of heavy airfreight losses, Air France-KLM\u2019s cargo sector results will be reported within its overall financial reporting. The accounting decision will take the struggling cargo arm out of the public eye.
\n\u201cIt has been decided to change the cargo reporting as per fiscal year 2017 based on contribution margin and to include it in the passenger network results. This change will be effective as from the Q1 2017 results presentation,\u201d the group said.
\nCargo revenues fell especially hard last year, down 14.7 percent to \u20ac2.06 billion, as the world\u2019s most storied combined cargo carriers struggled to keep up in a competitive marketplace. AF-KLM blamed \u201cweak global trade and structural industry overcapacity, and to maximize its contribution to the group.\u201d
\nAF-KLM said that, starting this year, the financial performance of its cargo business would be merged within the overall financial results of the wider AF-KLM airline\u2019s operations and calculated on the basis of the cargo business\u2019s \u201ccontribution margin.\u201d
\nDuring full-year 2016, AF-KLM Cargo cut freighter capacity by 24 percent, reducing the number of freighters in operation to six. Freighter operating losses were reduced by \u20ac14 million, compared with the previous year, resulting in a full-year 2016 operating loss of \u20ac28 million for the company\u2019s freighter activities.
\nOverall freight capacity was down 4.6 percent, and load factors were down by 1.1 percentage points. And while the losses tied to its freighter operations have eased, the unit\u2019s overall cargo losses are ongoing, at least under the old accounting method.
\nThe carrier\u2019s cargo business posted operating losses of \u20ac244 million for 2016, essentially unchanged from 2015\u2019s full-year operating loss of \u20ac245 million. Meanwhile, 2016\u2019s cargo tonnage was down 6.2 percent at 1.13 million tonnes, with revenue tonne kilometers down 6.3 percent.
\nThose interested in learning more about airfreight in 2017, should join us at Cargo Facts Asia in Shanghai, 25 \u2013 26 April. \u00a0To register, or for more information, go to\u00a0CargoFactsAsia.com
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"