PARIS (dpa-AFX) - Air France-KLM Group (AFRAF.PK), comprising Air France, KLM and Transavia, reported Friday that its third-quarter net loss - Group part was 1.67 billion euros, compared to profit of 362 million euros last year.
The results were hurt by restructuring provision, Covid-19 related over-hedging and fleet impairment.
Operating result was negative 1.05 billion euros, compared to prior year's profit of 909 million euros. EBITDA loss was 442 million euros, reflecting cost control and state aid, compared to profit of 1.65 billion euros a year ago.
Revenue declined 67 percent to 2.52 billion euros from 7.61 billion euros a year ago.
Passengers carried fell 71.3 percent to 6.78 million, traffic declined 80.7 percent to 13.75 billion revenue pax-kilometers, and capacity dropped 59.6 percent 32.10 billion available seat-kilometers. Load factor plunged to 42.8 percent from last year's 89.8 percent.
Unit cost increased 26.7 percent, primarily caused by Covid-19 related capacity reductions.
Looking ahead, the airline anticipates a challenging fourth quarter 2020, with a substantial lower EBITDA compared to third quarter.
The company said it observed a positive demand recovery trend until mid-August after the lockdown. However, the negative trend reversal for the Passenger activity led the company airlines to adjust downwards the capacity planned for the fall and winter period.
Looking ahead, the company said there is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, especially on the Long Haul network. The period of lockdown starting in France is a new difficulty that will weigh on the firm's activities.
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