Air France-KLM reports $2bn losses and plans 8,000 job cuts
Ross Cullen in Paris
Europe;France
Airline carrier Air France-KLM reported operating losses of nearly $2bn in the second quarter of this year. /AFP

Airline carrier Air France-KLM reported operating losses of nearly $2bn in the second quarter of this year. /AFP

 

The Franco-Dutch carrier Air France-KLM reported a nearly $2 billion operating loss for the second quarter on Friday as the coronavirus crisis continues to hurt the airline.

Passenger numbers were down 60 percent for the first half of 2020 compared with 2019 and Ben Smith, the CEO of Air France-KLM, said the business has suffered an "unprecedented impact" from the pandemic.

The French government came under fire over the financial trouble at the company but said it would not let the airline fold.

"The state will do anything necessary to conserve this national airline company, the jobs that go with it and the independence that this represents," said Bruno Le Maire, France's finance minister.

 

France's finance minister, Bruno Le Maire, has said the government will do 'anything necessary to conserve this national airline company.' /AFP

France's finance minister, Bruno Le Maire, has said the government will do 'anything necessary to conserve this national airline company.' /AFP

 

France and the Netherlands approved a $12 billion rescue package for Air France-KLM last month and the CEO admitted how crucial that bailout was.

"The exceptional support of the French and Dutch governments has provided Air France-KLM with the liquidity needed to weather the crisis and ensure a gradual recovery in business," said Smith.

The funds came with conditions, including moving to a greener fleet and scrapping some routes.

KLM, Air France and its regional sister Hop are also now planning more than 8,000 job cuts. This has sparked protests in France.

"The social impact is really huge," said Julien Fort, a technician for Air France-Hop.

"Entire families will be affected, 300 employees will lose their jobs there for Hop but what will the repercussions be for its subcontractors?

 

Protests broke out at KLM, Air France and the airline's regional sister Hop, after plans were announced to cut 8,000 job. /AFP

Protests broke out at KLM, Air France and the airline's regional sister Hop, after plans were announced to cut 8,000 job. /AFP

 

Air France is not the only airline hit by financial turbulence.

British Airways' parent company IAG reported a pre-tax loss of $5 billion in the first six months of the year. That figure is down from a $1 billion profit during the same period in 2019.

Passenger numbers for IAG from April to May this year are also down, by 98 percent.

The company is hoping that major shareholders, such as Qatar Airways, can come to the rescue.