Air France-KLM Expecting EUR200 Mln Q3 Loss

Air France-KLM said on Wednesday it was likely to post an operating loss of some EUR200 million euros (USD$258 million) for its third quarter, after the economy deteriorated.

Europe's biggest airline repeated it still expected to achieve a positive operating income for the full year ending March 31, but that the level would depend on how the economic situation evolved, notably in the cargo business which is facing a tough environment.

Air France specified in its statement that it was not in a position to "make any pronouncement on the operating income forecasts circulating on the market" for the full year.

On Tuesday, Air France-KLM had warned it would post a third-quarter operating loss, sending its shares lower after the latest profit warning to hit the airline sector.

Air France-KLM had already withdrawn its detailed full-year earnings forecast in November after warning in October it would not be able to reach its 2008-09 operating profit target of EUR1 billion

The carrier said in November it still expected its operating result to be "clearly positive" barring worsening conditions.

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