Air Transport World

KLM. (News Briefs: Europe Report).(net loss )(Brief Article)

KLM posted a net loss of [euro]416 million (477.7 million) for the year ended March 31 compared with a loss of [euro]l56 million in the prior year. The company attributed the "disappointing result" to the weak global economy, the SARS virus outbreak, continued instability in the Middle East and the subsequent war in Iraq, which had an impact of approximately [euro]40 million on operating income.

Stating that it "does not anticipate a short-term improvement in the operating environment," KLM said it intends to take further "structural" steps to reduce costs, possibly including job cuts above the 3,000 already announced. It hopes to cut 10% from its unit costs, or an annualized cost saving of [euro]650 million, by March 2005, with a substantial part of this secured by March 2004. …

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