Noting continuation of the COVID-19 crisis, Air France-KLM takes exceptional measures
16 Marzo 2020 - 8:24AM
Noting continuation of the COVID-19 crisis, Air France-KLM takes
exceptional measures
Roissy, 16 March 2020
Noting continuation of the COVID-19
crisis, Air France-KLM takes exceptional measures
The COVID-19 crisis has continued to spread in
recent days, leading many countries to take increasingly stringent
measures in an attempt to slow the rate of spread of the epidemic.
Some countries have imposed constraints on the movement of
travellers from France, the Netherlands or more broadly from
Europe. In France, the transition to a level 3 public health
emergency requires the closure of all non-essential services since
last weekend.
Faced with these growing restrictions on the
possibility of travelling and a strong downward trend in demand
which has resulted in a drop in traffic and sales over the last few
weeks, the Air France-KLM Group is obliged to gradually reduce its
flight activity very significantly over the next few days, with the
number of available seat kilometers (ASK) potentially
decreasing between -70% and -90%.
This reduction in capacity is currently
scheduled to last two months, and the Group will continue to
monitor the evolution of the situation on a daily basis andadjust
it if necessary.
As a result of this reduction in capacity, Air
France will ground its entire Airbus 380 fleet and KLM its entire
Boeing 747 fleet.
To deal with this situation, the Group has
already taken a number of strong measures to secure its cash
flow:
- Additional savings measures have been identified, which will
generate €200 million in 2020
- An initial review of the investment plan has reduced the
capital expenditure plan by €350 million, to which will be added
the impact of the decline in activity on the amount of maintenance
investments
- Air France and KLM will be consulting with their elected
employee representativeson measures to take into account the impact
of the expected decline in activity, including a project to
implement partial activity
- Last week, the Air France-KLM Group drew a revolving credit
facility for a total amount of €1.1 billion and KLM drew a
revolving credit facility for a total amount of €665 million. As of
March 12, the Group and its subsidiaries had more than €6 billion
in cash and cash equivalents
In spite of the measures taken, the
deterioration of the environment linked to the epidemic and the
sharp reduction in its activity that has resulted today lead the
group to forecast a sharply deteriorated financial trajectory
compared to the outlook presented at the publication of its annual
results. Indeed, the Group estimates that the drop in revenues from
the Passenger business resulting from the reduction in capacity
will only be offset by around 50% by the drop in variable costs
before cost savings measures.
In this extremely difficult context, the Air
France-KLM Group has welcomed the statements made by the French and
Dutch governments, which have each indicated that they were
studying all possible means to support the Group.
Contact
Investisseurs
Contact PresseOlivier
Gall
Wouter van
Beek
+33 1 49 89 52 59
+33 1 49 89 52
60
+33 1 41 56 56
00olgall@airfranceklm.com
wouter-van.beek@airfranceklm.comWebsite: www.airfranceklm.com
- Press release Noting continuation of the COVID-19 crisis
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