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Air France-KLM Records Over €440million Loss In The Third Quarter

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Air France-KLM announced its third-quarter results on Friday, revealing losses of more than €440 million. The airlines posted huge losses for the third quarter of 2020. The group said that €2.5 billion third-quarter revenues were down 67% over the same period last year. Operating losses were €1.04 billion, a decrease of almost €2 billion.

According to the company, passenger traffic was down 80.7% in the third quarter compared to 2019. July and August were relatively strong in terms of traffic, but September was disappointing after being affected by restrictive travel measures. The tightening of travel restrictions, border closures, and the absence of corporate travel delayed the expected recovery in traffic.

The group recorded an EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of €442 million, which was limited thanks to cost control and state aid.

“After a promising recovery during the summer, the gradual closure of international borders in the second half of August and the resurgence of the pandemic strongly impacted our results in the Third Quarter, with the Group reporting an operating loss of 1.0 billion euros. We have accelerated the implementation of cost reduction and cash preservation measures, said Group CEO Benjamin Smith.

 

 

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