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Old Jul 31, 11, 6:44 am
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 11,520
AFKL reports big quarterly Loss

AFKL reported a Q2 (1 april- 30 June) operating loss of EUR145 and a net loss of some EUR200. The operating loss is widening compare to same quarter on 2010. As usual they will blabla by pointing to some tweaked numbers and treat well their analysts/journalists, BUT cash must be bleeding.

We know that all airlines faced problems in that quarter (but dont they usually do). But IAG, the parent of BA+IB, reported an operating profit of EUR190 compared to a loss of EUR70 a year earlier. They explain the improvement by a rapid rise in premium traffic (which AF is poorly positioned to capture with it low-quality product). LH is middle of the road. It publishes a Q2 operating profit of EUR230 compared to 159 a year earlier, but their six-month operating profit just breakseven.

The significant figure for Q2 (1 Par- 30 June) is that AFKL is deeply in the red in its operating results, while BA+IB and LH show significant positive profit. AFKL has been bleeding for the past years. The recent series of strikes, the damning interpretation of the BEA interim report are not going to help. How long can AF continue without government support beyond the informal ones it already receives in the form of impeding competition in France? Will it become another JAl or old-AZ?
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