Air France results

At its annual press update in Paris last week Air France-KLM confirmed that it is in talks with “two to three” potential bidders for CityJet, its Irish airline centred on London City Airport, and will make a decision by July (see BTN 18 February).  The airline could still keep the loss-making carrier but confirmed that the interested parties included other carriers and investors.  New equipment remains a high priority for CityJet, which could be Embraer, Bombardier (Q400 and C series), or even from the East.

Air France-KLM announced that net losses increased 47% to €1.19bn after a €471m restructuring charge and a massive €890m increase in its fuel bill.  Operating losses did fall slightly, from €353m to €300m.  Revenues rose 5.2% to €25.6bn

Chief Executive Jean-Cyril Spinetta,  now back in charge having held the same position from 2003 to 2009, said in a statement: "The year 2012 was characterised by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price.

"In 2013, we will maintain strict discipline in terms of capacity management, investments and costs."

Air France-KLM increased its overall load factor to 83% but its cargo business continued to struggle. www.airfrance.com

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