Air France-KLM reports €1.05bn loss for third quarter

Air France-KLM has reported an operating loss of €1.05 billion for the third quarter of the financial year and the European aviation market reels from the impact of Covid-19.

Revenue was down 67 per cent 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.

Air France-KLM added the new lockdown imposed by the French government amid rising cases of coronavirus across Europe will weigh on performance through the fourth quarter of this year.

Benjamin Smith, chief executive of the group, said: “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 our results in the third quarter.

“We have accelerated the implementation of cost reduction and cash preservation measures.

“We are also working closely with our partners on various means, such as rapid detection tests, that would allow traffic within the best sanitary conditions for our customers and employees.”

Air France is expected to fly 35 per cent of the capacity it offered in 2019 during the fourth quarter, with KLM offering around 45 per cent.

Smith added: “Beyond these immediate necessary measures, we are engaged in a more profound transformation of our group, with the objective of exiting this crisis in a stronger position, ready to address the future challenges of our industry.

“Air transport will continue to connect people and cultures, but we foresee changes in customers’ expectations that we anticipate too.

“We expect a challenging Fourth quarter 2020, with current forward booking sharply down compared to last year.”

Source : Breakingtravelnews