Air France-KLM has released data revealing that they have undergone losses amounting to €7.1 billion for financial 2020. With the COVID-19 pandemic continuing to cause travel restrictions, passenger numbers fell by 67 percent last year. The airline released a statement confirming that revenue fell €7.1 billion for financial 2020. The airline had to take €10.4 billion in state-backed loans last year.
First three months of 2021 to remain challenging
After the loan, the airline burnt through €2.6 billion in cash in the fourth quarter. Officials also clarified that the first three months of 2021 will be “challenging” and lead to a deeper hit in earnings. The carrier is expecting to fly only 40 per cent of its pre-crisis capacity in the first quarter due to global travel restrictions.
Benjamin Smith, chief executive of Air France-KLM, said: “Last year tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry. We begin 2021 looking forward that this year will see an upturn in traffic as soon as vaccination is deployed on a large scale and borders once again reopen.” Smith also mentioned that state support from the French and Dutch governments also helped the company significantly.