Affected by travel restrictions and the side effects of the Covid-19 pandemic, AirFrance has reported continued losses. The losses have been so substantial that the State, which already owns 14% of the capital, will double its share and inject an additional 4 to 5 billion euros in 2021.
Air France-KLM group announced that it will cut more than 7,000 jobs in Air France and the regional subsidiary Hop! by the end of 2022. It has suffered a net loss of 1.6 billion euros in the third quarter, in light of which the French government has decided to take measures to contain the damage.
To fight back the financial effects of the pandemic, Dutch Partner KLM has tried to find ways to boost confidence among travelers. On the 15th of December, KLM and Delta will launch a “Covid-free corridor” between Atlanta and Amsterdam.
At the end of April, the French Finance Ministry had already come to the aid of Air France with a historic support package of 7 billion euros, including 4 billion in the form of bank loans guaranteed by the State at 90% and 3 billion in shareholder advances. Air France had not received a single government grant for more than 25 years: a recapitalization of 20 billion francs back in 1994.