MIAMI — Air France-KLM expects government support as it says it will be short of cash in Q3 despite cost-cutting measures to reduce the impact of the COVID-19 crisis.
“It is now clearer than ever that support from both Dutch and French governments is needed to meet our cash requirements and enable us to continue our operations once the crisis is over,” Air France-KLM CEO Benjamin Smith said in a statement.
Support needed after flight reductions and aircraft retirements
On March 10, Air France (AF) announced that it would cancel 3,600 flights to Europe in March following the gravity of coronavirus spread in the region.
The reduction of flights to the continent represented 13% of the long-haul capacity of the carrier and a 50% cut in routes to and from Italy, according to the owner group, Air France-KLM.
In addition, KLM soon followed suit, retiring 7 Boeing 747-400 to reduce cost in late March. The retirement of the type was previously planned in 2021.