KLM posts full-year loss

KLM unsure of net profit this year

AMSTERDAM, Netherlands (CNN) -- KLM, Europe's fourth-largest airline, has posted a full year net loss of 156 million euros ($142 million) as passenger numbers and fares slumped after September 11.

Analysts polled by Reuters had expected a net loss in a range of 172 to 184 million euros.

The Dutch national carrier said on Wednesday it made an operating loss of 94 million euros in its fiscal year 2001/2002. That was down from a profit of 277 million euros in 2000/2001.

KLM, like its bigger rivals such as British Airways (BAY), has been forced to cut jobs and flights, and fly smaller aircraft after hijackers crashed planes in New York and Washington. Passenger numbers fell by a third after the attacks but are now showing signs of recovery.

"For the fiscal year 2002/2003, KLM will continue to be prudent in adding back capacity and is firmly focused on restoring profitability,'' KLM said in a statement.

"Continued uncertainty about the timing of the economic recovery, as well as fuel prices, make it difficult to predict whether a positive net result is achievable. We do, however, expect to make an operating profit.''

KLM said summer bookings look "encouraging" and it would continue to add more capacity.

Airlines have been experiencing an increase in the average revenue per passenger and are filling more seats. In April, KLM managed to fill 78.9 percent of its seats, up from 76.8 percent from last year.

Also reporting earnings on Wednesday was no-frills airline easyJet (EJZ), which said it made a pretax profit of £1 million for the six months to March 31, compared with a £10.3 million loss in the same period a year ago.

Europe's second-largest low-cost airline, which is in talks to buy rival Go-Fly, has been swamped with passengers attracted to its low fares. Traditional carriers, like KLM, BA and Germany's Lufthansa, have struggled to reign in costs to meet the challenge.

KLM , which is restructuring its budget carriers buzz and Basiq Air, said it is strongly committed to the sector.

"We are committed to our low-cost operations. We think it's a highly attractive market, value can be created," Chief Executive Leo van Wijk said. "We are highly committed to demonstrate to those who don't believe it yet that we will be able to manage this activity within the KLM group successfully."