Roissy,
From the start of the COVID-19 crisis, the Group has implemented adequate measures to protect its passengers and staff, as well as to preserve its financial sustainability.
In view of increasingly strict measures taken by many countries, including restrictions on travel opportunities or border closures, the
The Group has implemented strong measures since the beginning of the crisis which include, amongst others:
- Negotiation with governments of payment deferral for taxes (civil aviation, solidarity…), social contribution and various charges;
- Negotiation with lessors and airports of payment deferral;
- Cost reduction measures, estimated at this stage at €500 million in 2020, an increase of €300 million compared to previous announcements ;
- The possibility of early retirement of certain sub-fleets of aircraft;
- Implementation by Air France of partial activity measures and application by KLM for the ‘Temporary Emergency Bridging Measure for Sustained Employment’ (NOW), with an impact estimated at this stage at around €1.1 billion for 2020;
- Review of the investment plan to reduce the capital expenditure plan by €700 million in 2020, an increase of €350 million compared to previous announcements, to which will be added the impact of the decline in own and third-party activity on the amount of maintenance investments.
In solidarity with the all employee groups, the Air France-KLM Board members, Chair and CEO will also participate in the effort in line with the measures applicable to the employees of the Group, with a similar reduction of their remuneration.
As the crisis continues, the conditions for a recovery remain uncertain, both in terms of our air operations, but more generally in terms of the timetable for economic and demand recovery.
Our current best estimates, incorporating the above-mentioned measures, show that in the absence of additional financing, a liquidity requirement is expected in the third quarter of 2020.
As a result, the
At this stage, given the various options currently being considered and the quality of the discussions with the two States and financial institutions, the
"We are facing an unprecedented crisis affecting without exception the airline industry, which is causing a great deal of uncertainty about the outlook for air transport," said
Investor Relations Press
Olivier Gall
+33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 00
olgall@airfranceklm.com wouter-van.beek@airfranceklm.com
Website: www.airfranceklm.com
Attachment
- Press release in-depth discussions with governments and financial institutions VE
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