Airline group expects recovery to take several years
The globally imposed travel restrictions to counter the spread of the coronavirus has negatively influenced Air France KLM Groups financial results for the first quarter of 2020. The operating result of the group dropped to -815 million € (compared to -303 million € in 1Q 2019).
Air France / KLM hopes to slowly resume its operations in Summer 2020, with a capacity for the second and third quarter 2020 around -95% and -80% compared to previous year.
Passenger demand will not recover to pre-crisis levels before several years, hence the airline group will reduce its fleet by at least 20% in 2021 (compared to 2019).
The Group foresees significantly negative EBITDA in full year 2020 and a significantly higher current operating income loss in the second quarter than in the first quarter 2020.
The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 6 May 2020 to approve the financial statements for the first quarter 2020.
Successful first quarter
Benjamin Smith, Chief Executive Officer of the Air France-KLM Group, said: “The Air France-KLM Group had a promising start to the first quarter in line with the objectives of the strategic plan presented in November 2019.
However, the acceleration of the Covid-19 crisis in March had a strong impact on the Group’s first quarter results. I would like to thank our teams for their exceptional mobilization in this unprecedented crisis.
The Air France-KLM Group has adapted rapidly, by implementing health safety measures essential to our staff and customers, reducing our costs to preserve our liquidity, continuously adjusting our flight schedule, and the many repatriation flights and flights to transport medical equipment.
“Cautious assumptions of recovery”
Uncertainties remain regarding the evolution of Covid-19 and we must be cautious in the assumptions of recovery in the coming months.
Nevertheless, the commitment to financial support of the French and Dutch governments to our Group, as well as that our banking partners participating in these schemes, is a strong testimony of their confidence in our ability to weather this crisis and rebuild.
We are working on a renewal plan to ensure that the Air France-KLM Group regains its competitiveness in a deeply shaken world and reaffirms its leadership in the sustainable transition of air transport. These new orientations will be presented in the coming months.”