Air France-KLM is contemplating additional fairness measures to strengthen its stability sheet after first-quarter working losses deepened to €1.18 billion ($1.42 billion).
Group revenues of €2.2 billion for the three months ending March 2021 have been down 55% on the identical interval final 12 months, throughout which the pandemic impression was simply beginning to being felt. Passenger ranges throughout the group have been down 73% at underneath 5 million.
The working lack of €1.18 billion marked a widening from €815 million for a similar quarter final 12 months. The group recorded an EBITDA lack of €621 milion for the primary quarter and, in its outlook, initiatives an EBITDA loss in the identical vary for the second quarter.
Air France-KLM expects to function about 50% of pre-crisis capability ranges within the second quarter, because it progressively ramps up capability in step with the vaccination rollout in Europe. It hopes to elevate capability to between 55% and 65% of 2019 ranges within the third quarter.
Air France-KLM group chief govt Ben Smith says: ”A 12 months into the Covid disaster, lockdown measures and journey restrictions in our residence markets and around the globe proceed to strongly impression the group’s exercise. On this ever-challenging setting, the group has however proven its resilience, sustaining a strict management of its capability and prices.
”The success of the primary set of capital-strengthening measures, accomplished in April, permits us to sit up for the summer season season with larger confidence, hoping that the progress of the vaccination roll-out worldwide and the implementation of journey passes will enable borders to re-open and site visitors to get well. Within the meantime, we now have accelerated the implementation of our transformation plan to construct a stable post-crisis mannequin.”
A €4 billion recapitalisation, underneath which the French state doubled its stake within the airline group, passed off in April.
”The Air France-KLM group continues to work on strengthening its stability sheet,” it says. ”Extra fairness and quasi-equity measures are at the moment into account.”
It says extraordinary resolutions might be introduced at its subsequent annual common assembly aimed toward giving the board flexibility to ”restore fairness and provoke the gradual refinancing of state support and restore leverage ratio”.
Air France-KLM says it had €8.5 billion of liquidity and credit score strains at its disposal. ”This stage might be thought of snug, given the anticipated restoration in the summertime, regardless of the money necessities for 2021,” the group says.
Group chief monetary officer Frederic Gagey will retire at the beginning of July, it provides. He might be succeeded by Air France chief monetary officer Steven Zaat.