KLM has been unable to control its costs as planned, posting full-year losses of €133 million ($150 million) from €6.5 billion sales. The Dutch national carrier, like many other airlines, has suffered from falling traffic and lower yields in the past 12 months, and says it will have to cut more staff. The first half of the year to 30 September 2002, was relatively good, with the airline recording an €86 million profit, but the SARS outbreak and the Iraq war helped push traffic and revenue down in the second half. With unit costs unchanged over the year, KLM is set to cut "several thousand" jobs over the next two years as part of an effort to reduce operating costs by 10%.
Source: Flight International
