Plus   Neg

Air France-KLM Posts Q2 Loss On Weak Traffic; Sees Significantly Negative EBITDA In H2

Air France-KLM Group (AFRAF.PK), comprising Air France, KLM and Transavia, reported Friday that its second-quarter net loss group part was 2.61 billion euros, compared to last year's profit of 97 million euros.

The Covid-19 crisis severely impacted the second-quarter results.

The results included an impairment on Airbus 380 and 340 aircraft, Covid-19 related over-hedging, and restructuring provision.

Operating result was negative 1.55 billion euros, compared to last year's profit. EBITDA loss was 780 million euros, compared to profit of 1.17 billion euros a year ago.

Revenues for the quarter declined 83.2 percent to 1.18 billion euros from last year's 7.02 billion euros.

In the quarter, the number of passengers fell 95.6 percent from last year to 1.22 million. Passenger Unit revenue per ASK was down 42.8 percent.

Capacity declined 89.4 percent and traffic fell 95.5 percent from last year.

Looking ahead, the company projects a significantly negative EBITDA in the second half year 2020.

The company noted that it has seen a slow recovery of leisure demand in June and July 2020. The airlines of the Group are carefully increasing capacity for the summer months.

The company expects capacity in available seat kilometers at index 45 for the third quarter 2020 and at index 65 for the fourth quarter 2020 compared to last year.

Further, it sees negative load factor developments for the third quarter 2020, particularly on long-haul network.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT