Allegations that Air France-KLM colluded in price fixing freight rates for its air cargo business has cost it US$13.4 million in legal fees over the past financial year.

The group has not yet made provisions for these expenses in its accounts for the financial year ended March 2007. A report by The Financial Times of London added that this was because "it had not yet received sufficient guidance from the European competition authority on the scale of the challenge it was facing", quoting Air France-KLM's CFO Philippe Calavia.

But he did admit the legal bills "may last another couple of years" at the same level. "It is very expensive," he said.

The legal fees come as Air France-KLM, along with other top international airlines, have been charged by the US justice department and European Commission amid allegations of being involved in an illegal price-fixing cartel to set long-haul fuel surcharges on air freight.

Earlier this month, British Airways, which is also under investigation, revealed that there had been "breaches" in its compliance with competition policy. The report said the carrier was allocating $694 million to pay off eventual fines and claims by competition authorities and civil litigation.