Air France Klm Lost 7 Billion Euros In 2020, The Worst Year Ever
2021-02-18 | by CusiGO
Air France KLM, a business group, ended in 2020 with a net loss of 7.1 billion euros, the most serious loss in history. The airline announced on Thursday that the impact of the epidemic was extraordinary, with passenger traffic down 67% and cargo volume down 21%. Last June, Royal Dutch Airlines received 3.4 billion euros of monetary aid from the Dutch government. In April, France agreed to provide 7 billion euros in aid to Air France. In view of the new losses, Dutch finance minister wopke Hoekstra recalled that the Dutch government was prepared to reconsider the type of support Royal Dutch Airlines needed to overcome the crisis.
In the last three months of 2020, the airline group lost 1 billion euros, but performed even worse in the second quarter of that year, when the influenza pandemic essentially grounded planes. The loss at that time was 2.6 billion euros.
From January to March, Air France KLM is expected to fly at 40% of its pre pandemic capacity. As summer approaches, the frequency of flights will increase, depending on the progress and impact of the kvid-19 vaccination campaign. So far, however, Benjamin (Ben) Smith, the company’s chief executive, called it “the most serious crisis the air transport industry has ever experienced.”.
Air France’s operating loss in the last quarter of 2020 was EUR 989 million, while air Holland’s loss was EUR 152 million. In other less difficult jobs, the performance gap has led to tensions between airlines and their shareholders. The group’s net debt, including low-cost company Transavia, amounted to 11.049 billion euros in 2020, compared with 4.902 billion euros in 2019. The 2009-2010 fiscal year has been the company’s worst so far, but it has lost 1.6 billion euros since then.
Ben Smith added that the aid Air France and KLM received in their respective countries last year helped “reduce costs, protect the Ministry of Finance and respond to major changes,” and released the current results on Thursday. In the case of KLM, the national support received includes a 1 billion euro loan and a 2.4 billion euro commercial guarantee, funded by 11 domestic and international banks. The French government’s support for Air France includes a 3 billion euro loan and 90% bank loan guarantee. According to minister wopke Hoekstra on Thursday, the two governments are now considering new support measures, although the Netherlands prefers to invest only in Royal Dutch Airlines before the new figures are released, for fear that the injected capital will benefit its subsidiary Air France more.