AIR FRANCE-KLM MAKES RECORD ANNUAL LOSS

Air France merged with Dutch airline KLM in 2004
Air France-KLM has announced a record annual net loss of 1.55bn euros (£1.33bn, $1.91bn).

A fall in air traffic, particularly for cargo, rocketing fuel prices and the fatal Rio-Paris air crash of almost a year ago all took their toll.

Its chief executive, Pierre-Henri Gourgeon, said that 2009-10 financial year would go down as the company's “annus horribilis”.

The loss is even greater than the 1.3 bn euros it lost in 1993.

That figure, though, is not strictly comparable as it was made before Air France merged with the Dutch airline KLM in 2004.

This year's figure is almost double the 811m-euro loss reported for the previous financial year.