Air France-KLM posts €815m loss as coronavirus crushes demand
Air France-KLM this morning reported an €815m (£713.9m) loss for the first quarter on the back of the total collapse in flight demand caused by coronavirus.
Revenue fell 15.5 per cent to €5bn in the first quarter, with its net loss widening to €1.8bn from €324m.
The Franco-Dutch airline said that the plunge would continue into the second quarter, and said it could take several years for it to fully recover.
As a result, the group warned that it expected to record the first operating loss in its history.
Air France’s results echo those of airlines group IAG, which also reported a €535m loss this morning and said demand could take until 2023 to get back to pre-Covid-19 levels.
March saw an “abrupt plunge in revenue that will obviously extend through the second quarter”, said Air France finance chief Frederic Gagey.
Losses are estimated to increase in the second quarter, with passenger numbers predicted to fall by 95 and 80 per cent respectively through the next two quarters.
By contrast, IAG is predicting a quicker pick-up in passenger capacity, saying it will fly an estimated 55 per cent of its normal amount in the third quarter.
Air France-KLM said it was seeking to reduce cash burn to €400m a month in the second quarter, and has received a state loan of €7bn from the French government.
The Dutch government has also committed an additional €2-4bn to the struggling airline.