OPERATING LOSS FORESEEN

A week after the terrorist attacks in the United States, KLM has almost fully resumed its regular flight schedule, be it with lower loadfactors.

KLM expects increasing pressure on passenger traffic in the months ahead, especially on the Atlantic and European routes. The longer-term impact on cargo traffic will mainly depend on global economic developments.

In line with these expectations, KLM envisages to implement capacity cutbacks over and above the adjustment previously announced. Further details will be provided as soon as possible.

In addition to earlier statements on the financial impact of the broader economic slowdown, KLM anticipates further pressure on its operating results and expects to close the current fiscal year with an operating loss.

The immediate financial damage incurred by KLM in the wake of the attacks was primarily caused by the loss of revenue ensuing from the cancellation of more than 100 flights to the United States, Canada and the Middle East, in combination with extra costs ensuing from the accommodation of stranded passengers.

Neither the longer-term consequences of the events in the United States, nor the duration of such consequences can be fully envisaged at present. It is therefore currently impossible to estimate the magnitude of our full year operating loss.