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Air France-KLM Slips To Loss In Q4; Sees Challenging Q1 - Quick Facts

Air France-KLM Group (AFRAF.PK), comprising Air France, KLM and Transavia, reported Thursday that its fourth-quarter net loss - Group part was 1 billion euros, compared to last year's profit of 155 million euros.

Operating result was negative 1.13 billion euros, compared to profit of 94 million euros a year ago. EBITDA was negative 407 million euros, compared to prior year's positive 865 million euros.

Revenues plunged 64.3 percent to 2.36 billion euros from last year's 6.62 billion euros. Revenues declined 63.5 percent at constant currency rates.

Passengers fell 75.9 percent from last year to 5.94 million. Capacity declined 53.3 percent and traffic fell 77.9 percent. Load factor was 41.1 percent, down 45.8 percentage points.

Looking ahead, the company anticipates a challenging first quarter 2021 due to the lockdown and travel restrictions still in place, with a lower EBITDA compared to the fourth quarter 2020.

After a positive Christmas traffic in Domestic France and to the Caribbean and Indian Ocean, travel restrictions were tightened in France, the Netherlands and worldwide, having a negative impact on the traffic in the first quarter.

There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, on both the Long Haul and Medium Haul network.

The company will progressively ramp up capacity towards summer 2021 and expects recovery in the second and third quarter 2021 thanks to the vaccine deployment.

Group CEO Benjamin Smith said, "We begin 2021 looking forward that this year will see an upturn in traffic as soon as vaccination is deployed on a large scale and borders once again reopen. Our customers look forward to being able to travel again and their attachment to Air France, KLM, and Transavia has grown stronger during this crisis."

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