June will have been the month when traffic picked up again for the Air France-KLM group particularly on the Europe and Caribbean network. According to the group, the best-performing routes in the second quarter were those to the West Indies and Greece. Domestic France also performed well. Air France explains the upturn in passenger traffic by the lifting or easing of travel restrictions in Europe and an increase in vaccination rates in all countries.
On long-haul routes, in addition to the French West Indies, the Group reports that Africa, the Middle East and the Indian Ocean posted encouraging results. The reopening of the North Atlantic to US citizens travelling to Europe has also led to an improvement in the number of bookings. Although the reverse is still not true, and the US remains stubbornly closed to "non-essential" travel.
All in all, Passenger business sales reached 1,468 million euros in the second quarter, an increase of 294.5%. Le number of passengers transported reached 5.85 millionThis represents an increase of 418.9% compared with the second quarter of 2020, which was affected by containment. The load factor thus rose by 6.5 points to 43.7%.
Note the good performance by the company Transavia. The group's low-cost subsidiary transported 1.175 million passengers, a spectacular increase of 1,208.9%! The operating result for the second quarter showed an operating loss of -98 million euros. This was due to travel restrictions in Europe and North Africa, which should have an impact on traffic in the third quarter.
60% to 70% of seat capacity in Q3
In the current environment, the Group expects seating capacity kilometres offered for passenger services on the Air France-KLM network between 60% and 70% in the third quarter of 2021 compared with 2019.
Because of the uncertainty surrounding the reopening of the North Atlantic for European citizens and the uncertainty surrounding the lifting of travel restrictions, no indication of capacity will be provided for the fourth quarter of 2021.
The long-haul market continues to fluctuate according to the good and bad news. Take, for example, the restrictions once again in place in the French West Indies and Reunion Island in response to the resurgence of cases of Covid-19. Or the reopening of Canada to travellers from the European Union on 7 September, which should have a stimulating effect.
At 30 June 2021, the Group has €9.4 billion in cash and credit lines. A level that management considers comfortable. Air France-KLM is forecasting a Positive EBITDA (earnings before interest, tax, depreciation and amortisation) at third quarter 2021.
