Connect with us

Hi, what are you looking for?


Air France-KLM narrows second-quarter losses as bookings begin recovery

Stock Markets40 minutes ago (Jul 30, 2021 01:30AM ET)

(C) Reuters. FILE PHOTO: Passengers wait at the Air France desk at Nice international airport, France, February 20, 2020. REUTERS/Eric Gaillard

By Tim Hepher

PARIS (Reuters) – An easing of coronavirus travel restrictions is generating the first signs of recovery at Air France-KLM, said the airline group, as its unveiled narrower losses for the second quarter coupled with positive cash from operations.

The Franco-Dutch group posted losses before interest, tax, depreciation and amortisation (EBITDA) of 248 million euros ($294.57 million)for the quarter – marking a 532-million-euro improvement from heavy losses a year earlier when the pandemic had triggered global lockdowns.

Third-quarter EBITDA is expected to be positive, it said, adding its medium-term operating margin goal remained unchanged.

With long-haul capacity rising again following the reopening of the North Atlantic to Americans visiting Europe, Air France-KLM said it expected capacity at 60-70% of 2019 levels in the third quarter.

In May, it had said it expected to operate 50% of its pre-pandemic flight capacity in the second quarter, picking up to 55-65% in the third quarter.

But with U.S.-bound travel still closed to the majority of Europeans, it held back from giving capacity forecasts for the fourth quarter and called for reciprocity in the opening of borders as well as faster vaccination rollouts worldwide.

“We are closing the gap but we are still not there. We are still hampered by the COVID situation and the changing conditions,” said Chief Financial Officer Steven Zaat.

For the first time since the start of the crisis, operating free cashflow after lease repayments was positive at 210 million euros. Both of its main carriers – Air France and KLM – were cash-positive on the back of rising ticket sales.

“The appetite is there for people who can and will travel,” Zaat told reporters.

The group sees “good” summer bookings in Europe, though they are coming in later than usual, he said.

Air France-KLM reported quarterly revenues of 2.75 billion euros, up 1.57 billion euros from the same period last year.

Operating losses roughly halved to 752 million euros. Quarterly unit costs fell 71% due mainly to higher capacity, which grew by 389% compared to the tough year-ago quarter.

“We were able to reduce more costs than what we expected,” Zaat said, with restructuring showing improved results.

Fuel costs rose by about 300 million euros, mainly due to the extra capacity as well as a slight impact from rises in oil prices, cushioned by more favourable hedge contracts.

“The cargo market is still resilient” despite a 66% increase in capacity compared to last-year’s crisis-hit second-quarter, Zaat said.

Net debt fell by 2.7 billion euros to 8.3 billion euros from end-2020 after measures to boost the group’s balance sheet.

Zaat said KLM was in close touch with the Dutch state as it discusses further measures with the European Commission, but declined to give details of any concessions.

($1 = 0.8419 euros)

Air France-KLM narrows second-quarter losses as bookings begin recovery

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.


Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.


Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved