In case you haven't noticed it, oil prices are surging, and the impact of these high prices is not going unfelt by the major airlines. Today, Europe's largest airline, Air France-KLM, stated what most of us already knew... it's not going to be a pretty year for the company's bottom line.During its fiscal fourth quarter the airline swung to a loss of $853.81 million. During the same period last year the company was able to show a profit of $44 million.
The current surge in oil prices (which hit $135 earlier today), definitely played a role in the weak quarter, but were not the main culprit in the hefty loss. Most of the loss was due to $834 million after-tax provision due to a European and U.S. investigation into the air-cargo industry.
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