NYTimes.com Article: Dutch Carrier KLM Posts Quarterly Loss

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Dutch Carrier KLM Posts Quarterly Loss

May 8, 2003
By THE ASSOCIATED PRESS






Filed at 12:35 p.m. ET

AMSTERDAM, Netherlands (AP) -- KLM Royal Dutch Airlines
lost 447 million euros ($505 million) in its fourth
quarter, blaming the war in Iraq, a weak global economy and
a onetime charge related to its failed merger with Italian
carrier Alitalia.

The loss reported Thursday for the quarter ending March 31
was larger than its loss of 108 million euros a year
earlier.

The latest loss included a charge of 181 million euros
($204.5 million) for damages paid to Alitalia after KLM
lost a lawsuit over their abandoned merger more than two
years ago. It also included a restructuring provision of 49
million euros ($55.4 million).

Revenue fell to 1.38 billion euros ($1.56 billion) from
1.49 billion euros a year earlier.

For the fiscal year, KLM lost 416 million euros ($470
million) versus a loss of 156 million euros the previous
year. Revenue fell to 6.49 billion euros ($7.33 billion)
from 6.53 billion euros.

``Despite positive signs in the first half year, KLM
reported a disappointing result for the fiscal year. This
was mainly caused by the impact of the weak global economy
and the continued instability in the Middle East and
subsequent war in Iraq,'' KLM said.

The airline said factors beyond its control had slashed
around 40 million euros ($45 million) from its operating
income, but recognized the need for internal ``structural
improvement'' to improve profits. The Dutch airline said in
April it would slash 3,000 jobs to reduce its overhead.

KLM's shares fell 9.1 percent to close at 6.62 euros
($7.48) on the Amsterdam Euronext Exchange.

Due to uncertainties surrounding the SARS virus, KLM said
it does not anticipate a short-term improvement in the
business climate.

http://www.nytimes.com/aponline/business/AP-Earns-KLM.html?ex=1053418908&ei=1&en=0145eea1a422771a



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