Pierre-Henri Gourgeon, CEO of Air France-KLM stepped down on Monday, according to a company statement, as the company reported a first quarter net loss of €197 million.
Air France-KLM said Tuesday it posted a profit of 736 million euros for the first quarter, forecasting a break-even for the current year to March 2011 and reversing its downward fortune from a year earlier.
Air France-KLM, Europe's biggest carrier, has decided to drop plans to buy Czech Airlines (CSA), leaving Czech company Unimex Group as the only remaining bidder.
Europe's largest carrier has announced plans to shed up to 3,000 jobs over the next two years to make up for a sharp decline in traffic. The group has already cut 2,400 jobs over the financial year 2008-2009 to the end of March.
Europe's largest carrier said it expected to post operating losses of 200 million euros for the year ending March. This would be the first loss for the Franco-Dutch group since the two airlines merged in 2003.
French-Dutch airline company Air France-KLM was ordered by the US Justice Department to pay $350 million for fixing air cargo prices in the US. Cathay Pacific, Danish carrier SAS and Martinair Holland were also charged.
The Franco-Dutch carrier said net profit slipped 16% to 748 million euros in 2007-08. Chairman Jean-Cyril Spinetta said he was banking on operating income to reach €1bn in 2008-09, despite a strong euro and soaring fuel costs.
Alitalia said Wednesday that its chairman Maurizio Prato was resigning, hours after Air France-KLM ended takeover talks with the Italian unions. (Report: A.Roy)
The Italian government on Monday approved the takeover of loss-making national airline Alitalia by French-Dutch competitor Air France-KLM, Italy's economy minister said. (Report: N.Charbit)
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