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KLM sees improving trade
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January 31, 2002: 4:39 a.m. ET
Dutch carrier posts Q3 loss as passenger numbers slump, sees pick up
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LONDON (CNN) - KLM, Europe's fourth-largest airline, has posted a fiscal third-quarter loss as passenger numbers and fares slumped after September 11.
The Dutch national carrier said on Thursday it had a loss of  94 million ($81 million), or a loss per share of 2.02, in the three months to December 31, compared with a net income of 4 million, or 0.07 a share, a year ago.
KLM, like its bigger rivals such as British Airways, has been forced to cut jobs and flights, and fly smaller aircraft after hijackers crashed aircraft in the U.S. Passenger numbers fell by a third after the attacks but are now showing signs of recovery.
"An improvement in trading conditions was noticeable in the latter part of the third quarter. This continued in January. We will, however, be prudent in adding back capacity," the Dutch carrier said.
KLM was expected to report a net loss of between 84 million and 215 million with the consensus at 134 million in the third quarter, according to a Reuters analysts' poll.
Its stock, which has fallen almost by half in the last 12 months, rose 4.8 percent to 15.25 in early Amsterdam trading on Thursday after the company said the traditionally loss-making fourth-quarter would show a deterioration in operating loss, but the decline would be less pronounced than that experienced in the third quarter.
The airline industry was already in trouble before the September 11 attacks as an global economic slowdown crimped earnings. The International Air Transport Association has said global airlines will make a loss of about $12 billion for 2001.
KLM said passenger traffic fell 15 percent in the third quarter and it reduced seating capacity by 11 percent as demand fell. Third-quarter operating revenues declined 16 percent to 277 million, while operating losses increased to 76 million from 46 million, a year ago. Analysts had expected the figure to come in at anywhere between 34 million and 186 million. 
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