Air France KLM Group reports another massive loss of €1.5 billion for 1Q 2021

Over the first three months of 2021, Air France KLM continued to be negatively impacted by the travel restrictions due to the ongoing coronavirus pandemic. In Q1 2021, the Group posted a net loss of € 1.5 billion, an operating loss of € 1.2 billion and revenues down 56.9% to € 2.2 billion. 

“Due to the stricter lockdown in France until, at least beginning of May, a continuation of the lockdown in the Netherlands and travel restrictions worldwide still in place, Air France KLM Group anticipates the beginning of the second quarter to be similar to the first quarter whereby the customer booking behaviour is still short-term oriented, ” the group writes.

The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination. In the US, domestic demand is recovering rapidly due to the speed of the vaccination process.

In this context, the Group expects capacity in Available Seat kilometres circa index 50% for Air France-KLM in the Second quarter 2021 compared to 2019 for the Network passenger activity.

During the second half of the second quarter, the Group will progressively ramp up capacity given the vaccination deployment in Europe. For the third quarter, the Group foresees a capacity in Available Seat kilometres index in the range of 55% to 65% compared to 2019 for the Network passenger activity thanks to estimated higher demand.

The Air France-KLM Group continues to work to strengthen its balance sheet. Additional measures of equity and quasi-equity instruments are currently under consideration.

Extraordinary resolutions will be presented at the next Annual General Meeting, aiming to give the Board of Directors great flexibility to restore equity.l General Meeting, aiming to give the Board of Directors great flexibility to restore equity.

Press release in full: Air France KLM Group 1Q 2021 results