Air France-KLM Report 20 Percent Decline in Revenue

Air France-KLM reported the deterioration in the economic environment noted at the end of the first quarter of 2009 continued during the subsequent three months.

As a result, revenues for the group for the first quarter of fiscal year 2009-10 (April to June) recorded a decline of 20.5 percent to 5.19 billion euros.

Revenues in the passenger business fell by 18.7 percent to 4.01 billion euros, on the back of a 4.7 percent reduction in capacity, a 5.8 percent drop in traffic and a 14.5 percent decline in unit revenue per RPK.

The cargo business continues to be particularly affected by the crisis. Cargo revenues recorded a drop of 41.5 percent to 544 million euros due to a decline in traffic of 22.7 percent for a 17.2 percent reduction in capacity. Unit revenue per RTK declined by 25.1 percent

Air France-KLM’s revenues reflect a continuation of the trend of the Quarter January-March 2009, in line with the company’s expectations. The company maintains its assumption of a more limited deterioration in the second quarter and stability in the last two quarters, with even a slight improvement at the end of the year compared with the second half of 2008-09, which was already being impacted by the economic crisis.