AF KLM targets April 2010 breakeven

Air France KLM Group hopes to reach breakeven by the April 1 start of the 2010-11 fiscal year excluding its fuel hedge contracts, CEO Pierre-Henri Gourgeon told Les Echos. The hedges will continue to have a negative impact, but previously announced cost cuts should stop the deterioration in cash flow, he said, adding that he does not expect a return to 2008 traffic levels until 2012. Gourgeon insisted that AF is not evolving toward a low-cost service concept on its medium- and short-haul network, but "passengers are moving toward the low-cost. We will continue to offer a classic service, though with certain adaptations. We do not intend to remove the front of the cabin. There are still passengers that wish more comfort." The network will be adapted to save money, he confirmed. For instance, from Paris Charles de Gaulle AF will be operating fewer frequencies with larger-capacity A321s instead of A320s beginning in November. It lost €431 million ($635.9 million) in its fiscal first quarter ended June 30 (ATWOnline, Sept. 7).