Air France-KLM forecasts prolonged negative impact on demand lasting 'several years' due to COVID-19

7 May, 2020

Air France-KLM withdrew (07-May-2020) its previous 2020 guidance due to the COVID-19 crisis and now anticipates the following:

  • Progressive lifting of border restrictions in 2020, enabling a slow capacity resumption in summer 2020, with capacity for 2Q2020 and 3Q2020 down approximately 95% and 80% year-on-year respectively;
  • A prolonged negative impact on passenger demand, not expected to recover to pre-crisis levels for "several years";
  • A fleet repositioning including structural capacity reduction of at least 20% in 2021 compared to pre-crisis 2019 levels.

The group foresees a "significantly negative" EBITDA in FY2020 and a "significantly higher" operating loss in 2Q2020 than in 1Q2020. [more - original PR]