Eased restrictions help Air France-KLM to narrow loss

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On July 30, 2021, Air France-KLM Group announced it had narrowed financial loss in the second quarter of 2021. The positive outcome comes largely due to an easing of travel restrictions in Europe. However, uncertainty over corona-related restrictions remains.

Air France-KLM narrowed its operating loss to €752 million ($894 million), an improvement of €801 million ($952 million) compared to the previous quarter in 2020. Adding to that, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) loss were reduced to €248 million ($295 million). The group’s net loss currently stands at €1.4 billion ($1.7 billion).

“Thanks to the easing of travel restrictions in several key regions, the Second quarter of 2021 saw the first signs of the long-awaited recovery,” said Benjamin Smith, CEO of Air France-KLM. “Reciprocity of borders reopening and the acceleration of the vaccination roll-out worldwide, especially in the context of the rise of the Delta variant, will play a key role in maintaining this momentum.”

As for cargo, capacity increased by 66% in available ton kilometers (ATK) compared to the second quarter in 2020. According to Air France-KLM, the airline group transports more than 100 shipments of coronavirus vaccines every month.  The distribution of vaccines continues to gradually increase, and Air France-KLM “expects further growth in the third quarter, notably to Africa and South America”. 

During the Q2 2021, Air France added three Airbus 350-900s to the fleet and KLM Cityhopper welcomed two Embraer 195 E2 into its fleet. Currently, Air France has a total of 213 aircraft in its fleet, while KLM Royal Dutch Airlines operates 111 aircraft, the Planespotters.net data shows. 

 

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