"I hope they solve (the crisis) rapidly or that we see clear messages that confidence is coming," KLM Chief Executive Peter Hartman said.

Hartman, who is also deputy chairman of parent Air France-|KLM, said that looking three months ahead, premium bookings were holding up relatively well but that cargo was being hit by the preference of many shippers to switch to cheaper sea routes.

Speaking to Reuters on the sidelines of an industry summit amid airline merger speculation in the United States, he said "consolidation is not over in Europe either."

He also said Air France-KLM was still negotiating the final version of a deal to buy Airbus A350 jets but was disputing parts of the contract. He expected a deal in coming months.

(Reporting by Tim Hepher)

• A Permanent Economic Emergency