• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Aviation

Air France-KLM’s 2020 loss exceeds $8.5 billion

4 years ago
in Aviation, highlights, Home, home-news, latest News
3 min read
0 0
0
Air France - norvanreports

Air France - norvanreports

103
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

The Air France-KLM group released its annual financial results today for the full year 2020. As expected, the group posted a heavy net loss of €7.1 billion ($8.5billion). The group also reported a 59% fall in revenues and an overall drop in passenger numbers by around 67%.

The Air France-KLM group posted an annual net revenue loss of €7.1 billion. Photo: Photo: Vincenzo Pace | Simple Flying

Another set of results and another devastating loss. Airlines around the world are finally revealing how challenging 2020 was. For the Air France-KLM group, it meant a record loss. In 2019 the group reported a net income of €293 million ($353 million) compared to this year’s €7.1 billion ($8.5 billion) loss.

The group revenues slid by 59% to just €11.1 billion ($13.4 billion) compared to €27 billion ($32 billion) the year before. The group’s net debt stands at €11 billion ($13.2 billion), up €4.9 billion ($6 billion) in 2019. Its current liquidity stands at €9.8 billion ($11.8 billion).

With so many travel restrictions in place for most of the year, it’s no surprise passenger numbers dropped to just over 34 million across the whole group. Breaking the group down into individual airlines and Air France posted a much larger loss than KLM.

Air France’s operating loss for the year was €3.4 billion ($4.1 billion), while KLM posted a more reasonable operating loss of €1.2billion ($1.4 billion). Transavia posted a €93 million ($112 million) operating loss.

In a statement seen by Simple Flying, group CEO Benjamin Smith said, “2020 tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry. I would like to thank our employees for their dedication and tremendous flexibility during this period, which has allowed us to remain resilient despite an unprecedented drop in traffic.”

KLM posted a slightly smaller operating loss than Air France which may cause tension between the French and Dutch Governments. Photo: Getty Images
Is help on the way?

After months of negotiations between both the French and Dutch government’s as well as unions and the group, there still does not appear to be any more bailout money on the way. The two governments currently appear to be unable to decide how to split the bailout loan between the two main airlines, with the Dutch claiming taxpayer money should not be spent on the French airline.

RelatedPosts

BoG Postpones National Launch of Cedi@60 Anniversary Following Helicopter Tragedy

Japanese Automakers Toyota and Honda Take a Big Hit From Trump’s Tariffs

Multichoice Ghana Faces Licence Suspension Over Refusal to Cut DStv Prices as Deadline Expires Today

Originally, an agreement was to be made before the results were announced. However, no agreement has materialized, and now, the difference between the two airline’s operating losses may cause a bigger divide. There have been rumors circulating that we could see the group split unless an agreement can be reached. However, we things starting to look up, this seems less and less likely.

Both Air France and KLM will operate smaller fleets going forwards. Both airlines may also cut more jobs if necessary. Photo: Air France
Things are looking up

The group’s results weren’t all doom and gloom. With worldwide cargo capacity down due to fewer passenger flights, cargo prices are high. The group’s total cargo revenues were €2.5 billion ($3 billion), an increase of almost 20% on 2019 figures. The load factor was also up 9.5 points.

Despite this, the group doesn’t expect to fully recover to 2019 levels this year and, as such, will operate a smaller fleet and employ fewer staff members. Both Air France and KLM have already implemented layoffs, and further cuts have not been ruled out.

Like many airlines, the Air France-KLM group seems to be relying on the vaccine rollout across Europe as a sign of recovery. The group intends to ramp up flights towards the summer months and throughout the second half of the year. Only time will tell if the next few months will signal the start of the recovery period. Either way, we expect most airlines to be posting similar results for the first quarter of 2021.

www.simpleflying.com

Source: simpleflying
Via: norvanreports
Tags: 59% fall in revenuesAir France-KLM’annual financial resultsCEO Benjamin SmithCOVID-19 pandemicTransavia
No Result
View All Result

Highlights

Oil Prices Rise After Trump Targets India’s Imports

Foreign Capital Inflows Into Banking Sector Hit Five-Year High in 2024

Electricity is Getting Cheaper Across Africa

Summary of Events Following Confirmation of Deaths of Defence and Environment Ministers, Six Others in Military Helicopter Crash

FDI Rises to 3-Year High as Reforms Boost Investor Confidence

Togo is Flexing its Unrivaled Maritime Power

Trending

Bank of Ghana
Business

BoG Postpones National Launch of Cedi@60 Anniversary Following Helicopter Tragedy

August 7, 2025

BoG Postpones National Launch of Cedi@60 Anniversary Following Helicopter Tragedy The Bank of Ghana (BoG) has indefinitely...

Japanese Automakers Toyota and Honda Take a Big Hit From Trump’s Tariffs

August 7, 2025

Multichoice Ghana Faces Licence Suspension Over Refusal to Cut DStv Prices as Deadline Expires Today

August 7, 2025

Oil Prices Rise After Trump Targets India’s Imports

August 7, 2025

Foreign Capital Inflows Into Banking Sector Hit Five-Year High in 2024

August 7, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.