Air France KLM Group posted an operating loss of €129 million (US$170 million) for its fiscal year ended 31 March 2009

compared with a €1.4 billion (US$1.8 billion) operating profit a year earlier. Passenger revenue dropped 1.7 percent. "The current year is likely to be equally challenging," said CEO Pierre-Henri Gourgeon. The company also reported a 14 percent decline in annual marketing and distribution costs, partly due to "the further reduction" in commissions. "Although we have experienced some signs of stabilization in our operating environment in recent weeks in both the cargo and passenger activities, it is too early to tell whether they indicate the start of an economic recovery," according to an Air France KLM statement, noting that passenger capacity this summer would be down 4.5 percent.