Air France-KLM reports huge Q2 loss, sees signs of recovery

THE HAGUE, Netherlands — French-Dutch airline group Air France-KLM said Friday that the “first signs of recovery are visible” in bookings amid easing pandemic travel restrictions as it reported a second-quarter net loss of nearly 1.5 billion euros. Air France-KLM’s fleet of planes carried just over 7 million passengers in the year’s second quarter, a rise of 477% compared to the same quarter last year, when strict lockdowns and travel restrictions slammed the brakes on the global aviation industry. Air France-KLM made a 7.1 billion-euro loss in 2020 as the global pandemic grounded planes and halted travel plans worldwide, causing a 67% slump in passenger numbers. “But, of course, we are still far away from the 2019 levels.” The carriers said that the easing of restrictions on Americans flying to Europe “also resulted in an improved booking trend.” However, it didn’t give any guidance on expected capacity for the fourth quarter of 2021, citing “the uncertainty of the reopening of the North Atlantic for European citizens and uncertainty concerning travel restrictions waiving.” CEO Benjamin Smith added: “Reciprocity of borders reopening and the acceleration of the vaccination rollout worldwide, especially in the context of the rise of the delta variant, will play a key role in maintaining this momentum.” Revenue for the quarter was 2.75 billion euros, up by 132.5% compared to 2020’s second quarter.