Air France-KLM says it is engaging in a “profound
transformation” to meet changing customers’ expectations after the Covid crisis
ends as the group announces its third quarter results today.
The airline said that revenues in the third quarter were €2.5
billion, down 67 per cent on the same period in 2019 and that operating losses were
€1.04 billion, a deterioration of nearly €2.0 billion on last year.
Group CEO Benjamin Smith 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, with the group reporting an operating loss of €1.0 billion
euros. We have accelerated the implementation of cost reduction and cash
preservation measures.”
He added: “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. 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.”
The group said it had €12.4 billion euros of
liquidity or credit lines at its disposal but net debt had increased by €3.2
billion to €9.3 billion since the end of 2019.
Passenger traffic is down 80.7 per cent on last year, It said: "The tightening of travel restrictions, border closures and absence of corporate travel delayed the expected traffic recovery. July and August were relatively strong in term of traffic compared to a disappointing September affected by restrictive travel measures."
The national lockdown starting today in France and lasting until the end of November at least will further weigh on the group's activities.
Smith added: “We expect a challenging fourth quarter 2020,
with current forward booking sharply down compared to last year.”