Air France-KLM Reports $8.5Bln Net Loss In 2020 Amid COVID-19 Crisis

Air France-KLM Reports $8.5Bln Net Loss in 2020 Amid COVID-19 Crisis

MOSCOW (UrduPoint News / Sputnik - 18th February, 2021) Air France-KLM Group released its annual financial report on Thursday, reflecting a huge yearly loss amounting to 7.1 billion Euros ($8.5 billion) as a result of the pandemic's "severe" impact.

"Net income amounted to -7.1 billion euros in the Full Year 2020, a decrease of 7.4 billion euros compared to last year," the company said, specifying that the "exceptional accounting items due to Covid-19" included 822 million euros in restructuring provision, 595 million euros in fuel overhedging, and 672 million euros infleet impairment.

Additionally, the French-Dutch airline group said it paid 2.3 billion euros in refunds throughout the year, pointing to the 69-percent decrease in annual passenger traffic as a result of the COVID-19-related travel restrictions.

Total revenues in 2020 dropped 59 percent year-on-year to 11.1 billion euros, according to the financial report.

CEO Benjamin Smith said that the airline was faced with the "most severe crisis ever experienced by the air transport industry."

The company reported 9.8 billion euros of solid liquidity and access to credit lines, as of December 31, 2020, expecting a gradual boost of capacity and recovery toward the summer in tandem with the progress of Europe's vaccination campaign.

Last year, Air France-KLM received 7 billion euros from France and 3.4 billion euros from the Netherlands in state assistance to recover from the COVID-19 shocks.