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Air France-KLM losses widen as fuel costs rise

The Franco-Dutch airline says it made a 1.19bn euros net loss in 2012, blaming sharply rising fuel costs and trouble with its cargo business.

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Air France-KLM, the Franco-Dutch airline, says it made a big loss in 2012, blaming sharply rising fuel costs and trouble with its cargo business, reports the BBC.

Net losses increased 47% to 1.19bn euros (£1bn; $1.57bn), after a 471m-euro restructuring charge and a 890m-euro increase in its fuel bill.

But operating losses fell to 300m euros, from 353m euros the year before.

Revenues rose 5.2% to 25.6bn euros, thanks in part to increased prices on its North Atlantic routes.

Debt fell from 6.51bn to 5.97bn euros after sell-offs and spending cuts - the company plans to reduce its net debt by 2bn euros by the end of 2014.

Read more of this report from the BBC.