Third quarter losses of EUR 1.05 billion were announced by Air France-KLM

For the third quarter of the financial year, Air France-KLM announced an operating loss of EUR 1,05 billion from the effect of Covid-19 on the European aviation market and reels.

Revenue decreased by 67% to EUR 2,52 billion, while the company reported a net loss of EUR 1,67 billion, including a restructuring fee of EUR 565 million and an impairment fee of EUR 31 million for the fleet.

Air France-KLM added that the latest lockdown introduced by the French government would weigh on results through the fourth quarter of this year in the wake of increasing coronavirus cases across Europe.

Benjamin Smith, Group Chief Executive, said: "After a promising recovery in the summer, the gradual closure of international borders in the second half of August and the resurgence of the pandemic in the third quarter had a significant impact on our results."

"We have accelerated the introduction of steps to minimize costs and conserve cash.

"We are also working closely with our partners on various means, such as rapid detection tests, that would allow our customers and employees to traffic under the best sanitary conditions."

During the fourth quarter, Air France is expected to fly 35 per cent of the capacity it provided in 2019, with KLM offering about 45 per cent.

Smith added: "We are engaged in a more profound transformation of our group beyond these immediate necessary measures, with the aim of exiting this crisis in a stronger position, ready to tackle the future challenges of our industry."

Air transport will continue to connect individuals and cultures, but we anticipate shifts in the preferences of customers that we also expect.

"We expect the fourth quarter of 2020 to be challenging, with current forward bookings down sharply from last year."

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