Rising to new challenges to strengthen the Group
In just a few years, Air France-KLM has become a key player in international trade. As the European leader in international air transport, the Group has some major strengths when it comes to rising to new challenges.
Resilience in the face of a deteriorating global economic environment
As growth in air transport demand is closely linked to global growth, the dynamism of the airline sector depends on trends in the global economy. Despite an overall downturn in air traffic at the end of 2008, Air France-KLM has some robust competitive strengths that should underpin its resilience in the face of the financial and economic crisis.
Consolidating its leadership of the international airline arena
Since 2008, the Group's competitive environment has been affected by the downturn in the global economy which has forced most airlines to reduce their capacity. The trend in the airline industry is towards a strengthening of existing leadership positions, an acceleration in mergers and a reduction in the number of players. As the European air transport leader, Air France-KLM intends to play a pro-active role in forthcoming changes within the sector.
Reducing the risks linked to oil
The Group revised its fuel hedging policy, halting new hedging contracts as of October 2008 and unwinding, between December 2008 and February 2009, almost half its hedge portfolio. For the 2009-10 financial year, the Group reduced its hedged position from around 70% of its fuel consumption in October 2008 to 43%. For the 2010-11 financial year, the hedge position has been reduced from 49% to 18% and, for 2011-12, from 29% to 21%.
Meeting the requirements linked to sustainable development
At the French national conference on the environment in January 2008, Air France-KLM made a commitment to becoming an industry benchmark in terms of corporate social responsibility and sustainable development. The Group is pursuing an ambitious sustainable development policy in order to become the air transport sector benchmark for corporate social responsibility and respect for the environment.
This page has been printed from Air France-KLM group's financial website (www.airfranceklm-finance.com).