Tuesday, 7 July, 2020, 9:17 AM
Home Business

Coronavirus buffets Air France as 2019 profits dive

Published : Friday, 21 February, 2020 at 12:00 AM  Count : 162

Feb 20: French-Dutch airline Air France-KLM said Thursday the coronavirus has blown a large hole in 2020 earnings to date while separately unveiling lower profits for 2019.
"Assuming a progressive resumption of (full-scale) operations from April, the estimated impact of COVID-19 on operating income is for a 150 to 200 million euros hit between February and April," the group said in a statement.
Air France-KLM said its forward guidance on the virus hit came on the heels of a 31 per cent drop in net profit to 290 million euros ($313 million), on the back of a falloff in freight and rising fuel bills.
The spread of the virus since the turn of the year has forced major carriers including British Airways, Air Canada, Air France-KLM, Lufthansa, American Airlines, United Airlines, Qantas, American Airlines and Delta to suspend thousands of flights to China.
The outbreak could mean an overall $4-5 billion drop in worldwide airline revenue, the International Civil Aviation Organization stated last week.
The UN body said that 70 airlines had scrapped all international flights to and from China with 50 others cutting services.
Latest data from China indicate that more than 74,500 people have now been infected nationwide by the virus, which first emerged in central Hubei province in December, with the death toll standing at 2,118 -- eight of them outside China.
China accounts for around 5.5 per cent of annual business for Air France-KLM, and the virus has had a "severe effect", finance director Frederic Gagey told reporters.
Against the virus backdrop, projected long-haul demand is also down, while the health scare has further hit cargo demand.
According to the International Air Transport Association, demand for air freight had already slipped 3.3 per cent last year for a worst showing in a decade on Sino-US trade tensions.
Air France-KLM, which said its operating result dropped 19 per cent to 1.14 billion euros, had announced on February 6 that it would progressively resume daily flights to and from Shanghai and Beijing from March 16.
The group, the first major carrier to release earnings since the severity of COVID-19 became clear, said Thursday it targeted a "return to normal schedule" from March 29, including onward flights to the virus epicentre of Wuhan.    -AFP

« PreviousNext »

Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone :9586651-58. Online: 9513959, 01552319639, Advertisement: 9513663
E-mail: [email protected], [email protected], [email protected], [email protected],   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft