KLM unsure of year ahead

AMSTERDAM, July 25 (Reuters) -- KLM posted a slight fall in first-quarter net income to 11 million euros on Thursday, matching forecasts, and repeated it expected to make an operating profit in the full year but wasnt so sure of a positive net result.

Europe's number four airline saw first-quarter operating profits rise to 41 million euros from 23 million in the quarter last year, with net income down from 19 million.

"KLM confirms its expectation to report a positive operating income for fiscal year 2002/03. The continued uncertainty about the timing of economic recovery and fuel price levels makes it difficult to predict whether a positive net income will be achievable,'' the Dutch carrier said in a statement.

The business of KLM Royal Dutch Airlines, highly exposed to a North Atlantic market scarred by the September 11 attacks, revolves around its Amsterdam Schiphol hub, which feeds many passengers onto U.S.-bound flights.

Like airlines the world over, KLM has been hard hit by the global economic slowdown too.

Forecasts for KLM's first-quarter results had varied widely. Six analysts polled by Reuters had predictions ranging from a net loss of 21 million euros to a net profit of 12 million, with the median at a 10.6 million euro profit.

Operating profits had been seen in a range of two million to 53 million euros, with the median at 20 million.

KLM has already said its overall load factor -- average loadings as a percentage of available capacity -- rose to 78.3 percent in the first quarter from 76.1 percent in the year-ago period, though the figure was flattered by considerable capacity cuts.

Last year KLM made a net loss of 156 million euros and warned it might not return to profit in the current year.

The airline had an operating loss of 94 million euros in the year to end-March but said it expected an operating profit this year.

The airline said in May it would continue to be prudent in adding back capacity -- which it cut after the September 11 attacks hit air travel markets already weakened by global economic slowdown.