Air France-KLM: loss of 1.8 billion euros after the first effects of coronavirus

Air France-KLM: perte de 1,8 milliard d’euros suite aux premiers effets du coronavirus

The Air France-KLM group has recorded a net loss of 1.8 billion euros in the first quarter, affected by the first effects of the Covid-19 on the air transport in march, and posted on Thursday of the prospects very dark until the third quarter.

The loss of the first quarter was thus more than quintupled compared to 324 million euros recorded a year earlier. It includes 455 million euros of anticipated purchases of fuel that was not consumed due to the crisis.

And these results do not reflect for the moment that the impact of the epidemic on the air traffic in the month of march so that the year had “a very good start in January and February,” commented the group’s chief financial officer Frederic Gagey, during a conference call with journalists.

The airline franco-Dutch, who must receive aid of € 7 billion from the French State to keep the head out of the water, is, thus, to a drop of capacity from 10.5% in the first quarter (-35% in march), but he anticipates a collapse of 95% for the second quarter and 80% in the third, according to a press release.

The carrier expects “a slow recovery in activity in the summer of 2020, with the gradual lifting of restrictions at the borders”, but believes that the application of the commercial traffic that “should not return to the pre-crisis level for several years”.

By 2021, it announced “a realignment of the fleet, including a structural reduction of the capacity of at least -20%” compared to the pre-crisis level by 2019.

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