KLM losses mounting as Air France - KLM posts worst quarter ever

KLM and Air France planes at the Charles de Gaulle Airport in Paris
KLM and Air France planes at the Charles de Gaulle Airport in Parishzparisien@gmail.comDepositPhotosDeposit Photos

The first three months of this year was the worst quarter ever for Air France-KLM. The airline combination suffered a net loss of 1.8 billion euros, compared to a loss of 320 million euros in the same quarter last year. For comparison, Air France-KLM's worst year ever was 2009-2010, when it suffered a loss of 1.6 billion euros over the entire year. Air France's loss is almost twice as great as that of KLM, NOS reports. 

Air France-KLM started the year off well, seeing an increase in their occupancy rate. But then the coronavirus hit. First it only affected flights to and from Asia. But in March, almost all flights were scrapped. KLM previously reported that it transported 54 percent fewer passengers in March than in the same month last year.

The figures for the second quarter are expected to be even worse. Air traffic was at a near standstill throughout April And while KLM restarted flights to a number of European destination this week, the majority of the airlines planes is still grounded. 

The Dutch and French governments both announced that they will bail out their respective airlines. KLM will get a bailout package of between 2 billion and 4 billion euros. The terms of this bailout are currently under negotiation.