EARNINGS : KLM Sees $396-Million Losses
KLM Royal Dutch Airlines, hit by soaring fuel costs and falling passenger traffic since the start of the Gulf crisis, said today it expects to lose $396 million in the current fiscal year ending in March.
It earned $207 million in the last financial year, which ended March 31, 1990.
The Dutch-flag carrier reported a net loss of $130 million in the third quarter to Dec. 31, against a $35.7-million profit in the same period a year earlier.
The loss included a $90-million provision to pay for reorganization of the company.
KLM said that its fourth quarter traditionally shows a loss but that circumstances this year are particularly bad.
The airline has canceled flights to destinations in the Middle East. It plans to lay off more than 1,000 of its 25,000 employees and trim costs by $250 million over five years.
Separately, Swissair said today it would cut about 120 flights per month and was considering shortening working hours because of a 15% fall in passenger traffic in January.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
