Published on : Tuesday, November 3, 2020
Air France-KLM recently reported an operating loss of €1.05 billion for the third quarter of the financial year as the European aviation market reels from the impact of the COVID-19 pandemic. According to reports, revenue for the company was down 67% at €2.52 billion, while the group recorded a net loss of €1.67 billion, including a restructuring charge of €565 million and a fleet impairment charge of €31 million.
The airline also mentioned that the latest lockdown imposed by the French government amid rising cases of coronavirus across Europe will impact the performance through the fourth quarter of this year. Air France is expected to fly 35% of the capacity it offered in 2019 during the fourth quarter, with KLM offering around 45%.
Benjamin Smith, Chief Executive, Air France-KLM said in a statement that after a promising recovery during the summer, the gradual closure of international borders in the second half of August and the resurgence of the pandemic strongly impacted the results of the third quarter. He mentioned that the company has accelerated the implementation of cost reduction and cash preservation measures. He also informed that the airline is working closely with partners on various means, such as rapid detection tests that would allow traffic within the best sanitary conditions for customers and employees.
He further added that beyond the immediate necessary measures, the company is engaged in a more profound transformation of its group, with the objective of exiting the crisis in a stronger position, with proper readiness to address the future challenges of the industry. He stated that air transport will continue to connect people and cultures, and shared that the airline is currently foreseeing changes in customers’ expectations too. It is also expecting a challenging Fourth quarter 2020, with current forward booking sharply down compared to last year.