Air France-KLM has reported a €1.5 billion loss for the second quarter because the Covid-19 continues to take an enormous toll on the worldwide aviation sector.
This compares to a revenue of €1.9 billion for a similar interval final yr.
Nonetheless, in an indication the worst is likely to be over, the group mentioned it hopes to function at two-thirds of capability earlier than the top of the yr.
Air France-KLM additionally mentioned EBITDA loss had been minimalised at a mean of €260 million monthly over the interval, in comparison with an preliminary estimate of €400 million.
This was because of efficient money preservation and price management measures, the group mentioned.
Air France KLM chief government, Benjamin Smith, mentioned: “The second quarter outcomes reveal the unprecedented impression of the COVID-19 disaster on the exercise of the Air France-KLM Group and of all airways worldwide.
“The price discount and liquidity preservation measures quickly carried out have however enabled our operational losses to be diminished.”
To safe the way forward for each carriers, the French and the Dutch governments have offered monetary packages with circumstances connected to extend competitiveness and obtain sustainability targets.
Consequently, the group had €14.2 billion of liquidity or credit score traces at its disposal on the finish of June for use to climate the disaster and restructure its enterprise.
“The distinctive assist of the French and Dutch governments has offered Air France-KLM with the liquidity wanted to climate the disaster and guarantee a gradual restoration in enterprise,” added Smith.
“Nonetheless, the uncertainties linked to the well being state of affairs, the opening of borders and the final financial state of affairs are very sturdy.
“We should additionally adapt to vital modifications in clients’ behaviour.
“This context pushes us to speed up our transformation to enhance our financial and environmental efficiency in line with the principle pillars of our strategic plan.”
