Air France-KLM will suffer at least 150 to 200 million euros in damage due to the new corona virus. The French-Dutch airline made that estimate, it appeared when the annual figures were announced.
Because of the virus, both Air France and KLM stopped flying to China, where the virus broke out at the end of last year. KLM was planning to fly to China again in mid-March, but announced today that it is not expected to be until early April.
Air France-KLM closed 2019 with a turnover of 27.2 billion euros. That is 3.7 percent more than a year earlier. Net profit did, however, decrease from 420 million to 290 million euros.
KLM again more profitable than Air France
Both KLM and Air France surrendered, but as expected, the Dutch part of the company outperformed the French one: KLM ended 2019 with an operating result of 853 million euros, Air France with 280 million.
The reasons for the decline in profit were among others the increased fuel costs and the slump in the freight sector. KLM cut back, but lost staff costs, among other things. For example, new collective agreements came into being in the summer, part of which only came about after strikes. The pension costs also increased. According to KLM boss Pieter Elbers, innovations and cutbacks have paid off since 2014.
Air France is only at the start of such an operation, but Elbers expressed his confidence in his French colleague Anne Rigail. It started cost savings and improved profit margins at the end of 2019. The French say they are mainly struggling with more tax burden and higher airport costs.