Pandemic pushes Air France-KLM deep into red in Q1
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PARIS, May 6, 2021 (BSS/AFP) – Air France-KLM on Thursday announced a net loss of 1.5 billion euros ($1.8 billion) in the first quarter, as Covid-19 flight restrictions continue to batter the global aviation sector.
With passenger numbers in the quarter down 73 percent compared with a year earlier, the French-Dutch group is pinning its hopes on mass vaccinations allowing global travel to kickstart again later in the year.
Revenues for the quarter were down 57 percent on a year earlier.
“A year into the Covid crisis, lockdown measures and travel restrictions in our home markets and around the world continue to strongly impact the group’s activity,” chief executive Benjamin Smith said in a statement, describing the environment as “ever-challenging”.
By Graham Dunn2021-05-06T10:31:00+01:00
Air France-KLM executives believe the group could return to cash-positive operations over the summer if the vaccine rollout delivers the hoped-for recovery in travel demand.
Today the group disclosed that operating losses widened to €1.18 billion ($1.42 billion) in the first quarter, while EBITDA losses crept up from €557 million in the fourth quarter of 2020 to €627 million for the first three months of this year.
Source: Shutterstock
Air France-KLM is guiding for an EBITDA loss in the same range for the second quarter, as its projects capacity will be roughly half 2019 levels. That is similar to the 48% capacity levels the group flew in the first quarter.
Air France-KLM Pins Hopes On Summer After Huge Covid Losses By Tangi QUEMENER
05/06/21 AT 6:13 AM
Air France-KLM posted huge first-quarter losses on Thursday, pinning its hopes on a better summer to recover as it sees little improvement in global travel for now due to Covid restrictions.
With passenger numbers in the quarter down 73 percent compared with a year earlier, the French-Dutch group is pinning its hopes on mass vaccinations allowing global travel to kickstart again later in the year.
The Franco-Dutch group saw 1.5 billion euros ($1.8 billion) evaporate after tax in the first quarter worse than forecast by analysts polled by Bloomberg News while revenues were down 57 percent on a year earlier.