Despite progressive Vaccination efforts and Covid-19 Corona Virus safety measures , Air France-KLM has suffered a loss of 1.5 billion euros again in the second quarter as far fewer passengers are taking to the sky compared to pre-pandemic level.
However, the French-Dutch airline joint venture is hopeful of a robust business for the third quarter and rest of the year , though they have survived the Pandemic European commision approved state Aid.
Bookings picked up this summer, as lifting travel restrictions made it possible for Europeans to go on holiday again. Fully vaccinated Americans are also welcome in the European Union again.
In the Mean time, British Airways Parent company 'IAG' Reported operating loss for the half year amounted to just over €2 billion (£1.7bn).
Flight schedules are being ramped up by British Airways’ parent company IAG as the group looks to reduce its cash burn amid the turbulence caused by the pandemic.
IAG is planning to operate around 45 per cent of passenger capacity between July and September compared with the same period in 2019. That is up from just 21.9 per cent during the previous three months.
It added that it “continues to be adversely affected by the Covid-19 pandemic together with government restrictions and Quarantine requirements”.
IAG Chief executive Luis Gallego told investors:
“In the short term, our focus is on ensuring our operational readiness, so we have the flexibility to capitalise on an environment where there’s evidence of widespread pent-up demand when travel restrictions are lifted.
“We know that recovery will be uneven, but we’re ready to take advantage of a surge in air travel demand in line with increasing vaccination rates.
“We welcome the recent announcement that fully-vaccinated travellers from amber countries in the EU and the US will no longer have to quarantine upon arrival in the UK. We see this as an important first step in fully reopening the transatlantic travel corridor.”
The international trade association IATA recently announced that the demand for air travel increased slightly last month compared to May, but aviation is still suffering from the consequences of the corona crisis. Demand was more than 60 percent lower in June than in June 2019, the year before the pandemic broke out.
Losses have been Continuous during last six quarter, in 2020, Air France-KLM suffered a loss of over 7 billion euros. The airline combination only survived through State aid. The Dutch cabinet gave KLM 3.4 billion euros, in the form of loans and guarantees. France provided support to Air France.
Meanwhile, IAG Cargo, the cargo division of International Airlines Group, reported strong second-quarter revenue amid a confident outlook for the business with an improved air-cargo market.
