Air France-KLM plunges into E1.8b loss as virus bites

Air France-KLM on Thursday announced a Q1 loss of E1.8b and warned of more woe to come as the coronavirus pandemic decimates international travel. The group said it did not expect to reach pre-crisis levels of passenger demand "before several years". CE Benjamin Smith said the company was working on "a renewal plan" that was likely to include staff cuts. The Franco-Dutch airline said it had suffered a net loss of E1.8b in the first three months of the year, more than five times its E324m loss in Q1 2019. The group highlighted E455m in "over hedged" fuel purchases that were never used as the pandemic collapsed demand for oil and hence prices which tumbled to more than 20-year lows before recovering slightly. Its Q1 result underscored the effect of the virus crisis which hit France in full in March, with a nationwide lockdown implemented on March 17. Q2 figures risk being even more disastrous with most planes now stuck on the tarmac as international travel grinds to a virtual standstill. CFO Frederic Gagey said that the airline had even started the year "very well in January and February". French deputy transport minister Jean-Baptiste Djebbari told France 2 television that Smith had hinted at "more voluntary departures than direct job cuts" at the airline.<br/>