Air France-KLM warns of bigger losses amid lockdowns
Air France-KLM unveiled a 1.05 billion-euro ($1.24 billion) quarterly operating loss and warned of worse to come as a resurgent coronavirus brings new travel curbs. The Franco-Dutch airline group reported a 67% drop in third-quarter revenue to 2.52 billion euros on Friday, as France returned to full lockdown for at least a month.
New COVID-19 outbreaks pose a threat to network airlines already weakened by the crisis and long-haul travel collapse. “The gradual closure of international borders in the second half of August and the resurgence of the pandemic strongly impacted our results,” Chief Executive Ben Smith said.
Air France-KLM has 12.4 billion euros in liquidity, thanks largely to a French and Dutch government-backed bailout, a cash cushion comparable to those of European peers Lufthansa and IAG. Net debt increased by 1.34 billion euros in the quarter to 9.31 billion as of Sept. 30.
