Air France passenger traffic falls 3.2%

Air France-KLM reported a 3

Air France-KLM reported a 3.2 per cent fall in passenger traffic for November but saw gradual improvement in unit revenues, while a "more dynamic" cargo sector underscored signs of a fragile economic recovery.

The airline, the world's biggest by revenue, offered 2.9 per cent fewer seats in November and its passenger load factor, which measures the proportion of seats sold, slipped 0.2 point to 78 per cent.

"As in October, unit revenues are progressively recovering relative to previous months, both in premium and economy class," Air France KLM said in a statement.

Last month, Air France KLM posted a first-half loss but said it hoped to return to an operating break-even by the start of the next financial year..

Air France shares fell 1 per cent to €11.265 in early trading. The stock has risen around 24 per cent so far this year, having fallen 62 per cent last year.

Air France-KLM said cargo activity was "more dynamic" in November, with traffic down 14.7 per cent and capacity reduced by 19.1 per cent. The load factor rose 3.7 points to 72.4 per cent.

"As in October, unit revenues recorded a much more limited decline than in previous months," it said.

Comparative airline passenger numbers have been buoyed since October after the slump in travel that followed the global market meltdown in September 2008. In November 2008, Air France traffic was also affected by a pilots' strike.

Cargo volumes reached their low point in December that year as a shortage of financing paralyzed global trade.

Finnish carrier Finnair Oyj said today that November scheduled passenger traffic fell 20 per cent, outstripping an 18 per cent cut in capacity. Its shares fell 0.5 per cent.

Global airlines body IATA said last week that overall passenger demand rose in October but freight demand continued to fall, especially in Europe.

International passenger demand rose 0.5 per cent from the same month last year while freight demand fell 0.5 per cent after a 5.4 per cent drop in September.

Air freight, a key barometer of the strength of world trade, tends to pick up early in the economic recovery cycle when businesses start to replenish their inventories.

Reuters