By Olivia Bugault 
 

Air France-KLM said Monday that it is "very significantly" cutting its flight operations over the next few days, and warned on its "sharply deteriorated financial trajectory compared to the outlook" for 2020.

The Franco-Dutch airline said the capacity cut is scheduled to last two months and represents a potential cut in available seat kilometers of 70% to 90%.

"As a result of this reduction in capacity, Air France will ground its entire Airbus SE 380 fleet and KLM its entire Boeing Co. 747 fleet," the carrier said.

The company estimates that it won't be able to meet its 2020 guidance due to the rapidly deteriorating environment for airlines.

"The group estimates that the drop in revenues from the passenger business resulting from the reducing capacity will only be offset by around 50% by the drop in variable costs before cost saving measures," Air France-KLM said.

In order to face the situation, Air France-KLM said it has already taken several measures including additional saving measures that should generate 200 million euros ($222.17 million) in savings this year.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

March 16, 2020 04:29 ET (08:29 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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