Air France-KLM cuts 1Q operating loss, but charges hit net result

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Air France-KLM cut its operating loss in the second quarter to €66 million ($81 million), though its net loss deepened on restructuring costs and fuel hedging losses.

The operating loss for the three months to June 2012 of €66 million compares with a loss of €145 million at the same stage last year.

Revenue was up 4.5% to €6.5 billion for the quarter. Operating costs were fractionally down before fuel for the quarter, and up 3.2% including fuel costs - which rose €214 million for the period.

But the group's net loss for the quarter sharply increased to €895 million, reflecting one-off restructuring costs of €368 million related to its voluntary reduncancy programme and fuel hedging losses of €372 million. Air France-KLM posted a net loss of €197 million for the same period last year.