The Franco-Dutch air carrier which must receive aid of 7 billion euros from the French State to keep its head above water reported a net loss of 1.8 billion euros in the first quarter , while the coronavirus crisis has frozen its activity since March.
In March, the operating loss reached 560 million euros with travel restrictions that have multiplied around the world, forcing the company to ground almost all of its fleet.
The company anticipates a very slow recovery from the summer. According to her, capacities will be reduced by about 95% for the second quarter and 80% for the third quarter compared to last year.
According to Air France, passenger demand "should not return to pre-crisis levels for several years" which will force the company to reposition its fleet by including a reduction in capacity of at least 20% in 2021 compared to the pre-crisis level.
“We are working on a new plan so that the Air France-KLM group regains its competitiveness in a deeply disrupted world and reaffirms its leadership in the sustainable transition of air transport. These new directions will be presented in the coming months, ”said Benjamin Smith, the group's general manager.
Towards a job loss plan
Result ? The company is expected to cut jobs in the coming months. Air France has already scheduled a forecast job and skills management (GPEC) meeting in June to discuss capacity reductions and their consequences for staff. Without specifying the extent, Ben Smith said the company had "already identified" possibilities for voluntary departures.
Air France is not the only airline affected by this crisis. In recent weeks, social plans have followed one another: 12,000 job cuts at British Airways, 5,000 at SAS, 2,000 at Icelandair, 3,000 at Ryanair, 3,450 at United Airlines or 3,000 at Virgin Atlantic…
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