Published on : Friday, February 19, 2021
Air France-KLM has reported a loss of €7.1 billion for financial year 2020 as the global COVID-19 pandemic placed a standstill on international travel. The airline said in a statement that passenger numbers fell 67 per cent last year, while revenue fell 59 per cent compared to the previous year.
Air France-KLM also took on €10.4 billion in state-backed loans last year. However, after burning through €2.6 billion in cash in the fourth quarter, the airline said the first three months of this year will be challenging and involve a deeper hit to earnings. The carrier expects to fly just 40 per cent of its pre-crisis capacity in the first quarter as travel restrictions around the world continues to keep people at home.
Benjamin Smith, Chief Executive, Air France-KLM, said in a statement that last year tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry. He said that state support from the French and Dutch governments had helped the company significantly. He also mentioned that the company have begun 2021 looking forward that the year will see an upturn in traffic as soon as vaccination is deployed on a large scale and borders reopen once again .