Air France-KLM plans layoffs after heavy losses in first quarter

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Like all other airlines, the planes of the Franco-Dutch group have been nailed to the ground since mid-March and the closure of borders all over the world to prevent the spread of the coronavirus. 

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Air France-KLM is falling. Its losses more than quintupled in the first quarter compared to the same period last year.

Its net loss of 1.8 billion euros in the first quarter is just the beginning. The group lost 35% of its capacity in March and expects a collapse of 95% for the second quarter and 80% for the third.

A situation that worries the markets. The title was down 3.70% this Thursday morning on the Paris Stock Exchange.

Meeting with unions on employment

Air France, which has put its employees on partial unemployment, should receive state aid of 7 billion euros. But the company plans a reduction in its domestic flights which will have a social cost, the confession of the boss of the group.

Benjamin Smith must meet soon with the unions to consider layoffs, based on voluntary departures. The company employs 53,000 people, nearly 19,000 of whom are over 50 years old.

► Read also: Airbus and Boeing in the turmoil of the coronavirus

Air France is not the only air carrier to suffer from the consequences of the pandemic. Social plans are multiplying all over the world: 12,000 job cuts at British Airways, 5,000 at SAS Scandinavian Airlines, 2,000 at Icelandair, or 3,000 at Ryanair.

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• Aeronautics
• Coronavirus
• Confinement

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