Air France-KLM reported a €1 billion operating loss for the three months to September and net loss of almost €1.7 billion.
The Air France-KLM group’s losses for the first nine months of the year passed €6 billion, with operating losses accounting for €3.4 billion of the total.
However, Air France-KLM reported agreements with trade unions on “substantial restructuring plans” which have been submitted to the French and Dutch governments.
KLM’s restructuring will see 5,000 full-time jobs lost by the end of the year, 15% of the workforce. Air France will cut 4,000 by the end of 2020 and 8,500 by 2022.
The French and Dutch governments retain significant stakes in Air France-KLM and have made large amounts of aid available in loans and credit guarantees – France providing Air France with €7 billion and the Netherlands advancing €4 billion to KLM.
Air France-KLM reported: “The group observed a positive demand recovery trend until mid-August.
“July and August were relatively strong in terms of traffic compared to a disappointing September affected by restrictive travel measures.”
The group noted: “Visiting friend and relative demand [drove] summer traffic, with the French domestic, Middle East and African, and Caribbean and Indian Ocean more resilient.
“Medium-haul performance was mixed, with some leisure destinations such as Italy, Spain, Portugal and Greece benefiting from easing travel restrictions and others strongly affected by quarantine and testing like the UK and Germany.”
The Air France-KLM results statement warned of “a challenging fourth quarter” and added: “The period of lockdown starting today in France is a new difficulty that will weigh on the group’s activities.”
Group president and chief executive Ben Smith said: “After a promising recovery during the summer, the gradual closure of international borders in the second half of August and resurgence of the pandemic strongly impacted our results.
“We have accelerated the implementation of cost reduction and cash preservation measures.
“Beyond these immediate measures, we are engaged in a profound transformation of our group.”
Smith said: “Air transport will continue to connect people, but we foresee changes in customers’ expectations.”
KLM president and chief executive Pieter Elbers said the results “grimly reconfirm the extent to which the Covid-19 pandemic has disrupted the air transport industry. This is our deepest crisis since World War II.
“Our passenger flights have been scaled down further for the winter season.”
Elbers noted KLM will “bid farewell to around 5,000 employees by the end of the year” but warned of “further rightsizing of the organisation in view of the sombre outlook”.
Air France-KLM reported net debt of €9 billion and liquidity or credit to the value of €12.4 billion at the end of September.