UPDATE 1-Air France-KLM eyes 200 mln euros opg. loss in Q3

Wed Jan 21, 2009 1:50pm EST

* Air France says Q3 operating loss of 200 mln euros likely

* Says target is for full year positive operating result

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PARIS, Jan 21 (Reuters) - Air France-KLM (AIRF.PA) said on Wednesday it was likely to post an operating loss of some 200 million euros ($258 million) for its third quarter, after the economy deteriorated.

Europe's biggest airline repeated it still expected to achieve a positive operating income for the full year ending March 31, but that the level would depend on how the economic situation evolved, notably in the cargo business which is facing a tough environment.

Air France specified in its statement that it was not in a position to "make any pronouncement on the operating income forecasts circulating on the market" for the full year.

On Tuesday, Air France-KLM had warned it would post a third-quarter operating loss, sending its shares lower after the latest profit warning to hit the airline sector.

Air France-KLM had already withdrawn its detailed full-year earnings forecast in November after warning in October it would not be able to reach its 2008-09 operating profit target of 1 billion euros

The carrier said in November it still expected its operating result to be "clearly positive" barring worsening conditions.

(Reporting by Dominique Vidalon; Editing by Rupert Winchester)

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