The Air France-KLM group has reported a loss of €2.6 billion
for the second quarter of 2020, leading to a €4.4 billion loss for the half year
to 30 June as a result of the coronavirus pandemic.
Air France-KLM said passenger numbers were down 95.6 per
cent in the second quarter, with unit revenue falling 42.8 per cent year over
year. When looking at the group’s individual components, Air France and its
subsidiaries lost more than €1 billion, while KLM reported a loss of €493
million. Transavia posted a negative result of €111 million.
The €2.6 billion loss compares to a profit of €97 million
for the same quarter last year.
The group has shored up its liquidity to €14.2 billion
thanks largely to €10.4 billion in emergency aid from the French and
Dutch governments. Air France-KLM said the reserves will allow it to “weather
the crisis and restructure its business”.
Air France is planning to cut 6,560 jobs from its workforce
by the end of 2022 as part of its recovery plan, which includes the early
retirement of its A380 fleet. A further 1,020 jobs will go at HOP! and KLM said
2,000 staff have already signed up for voluntary redundancy. The group has
warned of the need to “significantly reduce the number of employees” in order
to survive a recovery that it expects will take several years.
Air France-KLM CEO Benjamin Smith commented: “The second quarter
results demonstrate the unprecedented impact of the Covid-19 crisis on the
activity of the Air France-KLM Group and of all airlines worldwide…
“The exceptional support of the French and Dutch governments
has provided Air France-KLM with the liquidity needed to weather the crisis and
ensure a gradual recovery in business. However, the uncertainties linked to the
health situation, the opening of borders and the general economic situation are
very strong. We must also adapt to important changes in customers’ behaviour.
This context pushes us to accelerate our transformation to improve our economic
and environmental performance according to the main pillars of our strategic
plan. I am confident in our ability to implement these projects with our teams
in order to emerge from this exceptional crisis.”