Air France-KLM on Thursday announced a Q2 loss of E2.6b, thanks to grounded flights during the virus pandemic, adding that the twin airlines must "significantly reduce" the workforce. "Activity levels were close to zero in April and May 2020," compared to last year, rising to just eight percent in June as government progressively eased their COVID-19 lockdown rules, the Franco-Dutch airline group said in its report. "Nevertheless, there is limited visibility on the demand recovery curve as customer booking behaviour is much more short-term oriented than before the Covid-19 crisis, especially on the Long Haul network," the report cautioned. Group CEO Benjamin Smith said: "The second quarter results demonstrate the unprecedented impact of the COVID-19 crisis on the activity of the Air France-KLM Group and of all airlines worldwide". Air France-KLM had already posted an operating loss of E1.5b euros for the quarter. "The exceptional support of the French and Dutch governments has provided Air France-KLM with the liquidity needed to weather the crisis and ensure a gradual recovery in business," along with cost-cutting measures, Smith added.<br/>
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The Dutch subsidiary of Air France-KLM will lay off 1,100 workers as part of a restructuring after the coronavirus crisis, national broadcaster NOS reported on Thursday, citing sources familiar with the company’s plans. Earlier on Thursday Air France reported a E2.61b loss for Q2 and said 2,000 KLM workers had accepted a voluntary redundancy package. KLM employed 33,000 before the epidemic began.<br/>
The CEO of Delta Thursday said more than 17,000 employees — close to a fifth of its staff — have chosen to leave the company as it reels from the coronavirus pandemic, but it doesn’t appear to be enough to take involuntary furloughs completely off the table. Delta and other airlines have urged their employees to take buyouts, early retirement and unpaid packages as the sector’s financial losses pile up. “I know these were difficult, personal decisions for everyone and their families,” Delta CEO Ed Bastian said in a memo to staff. “Each person who has opted to exit voluntarily moves us closer to our goal of minimizing furloughs and positioning Delta to weather the choppy recovery in the months and years ahead.” Under the terms of a $25b federal aid package, airlines are prohibited from laying off workers until Oct. 1. Federal rules generally require employers to inform workers at least 60 days ahead of time if their jobs are at risk, which would fall this weekend. Delta has already warned more than 2,500 of its 14,000 pilots about potential furloughs. The pilots’ labor union is sparring with the company after the airline urged aviators to take reductions to minimum pay to avoid involuntary cuts for a year.<br/>
Kenya Airways' decision to freeze expansion plans will hurt the East African nation’s economy and its relevance as a regional aviation hub, according to a pilot’s lobby. A plan to fire staff will affect more than 4,000 families who depend on the national carrier directly and about 620,000 others who rely on the aviation industry, the Kenya Airline Pilots Association said in a letter addressed to President Uhuru Kenyatta. The carrier should instead continue expanding and fill a gap created after rivals Air Mauritius and South African Airways were placed under administration, according to the letter published in the Daily Nation newspaper. “Expanding Kenya Airways will give our country the opportunity to capitalize on the maturity of her hospitality industry and fully utilize her substantive investment in airport infrastructure,” the group said. Kenya Airways this week began firing contract workers hired at the start of 2020 to support its prior expansion plans. Earlier in July the pilots offered to go on unpaid leave if that would help secure jobs and cushion the airline from effects of the coronavirus pandemic.<br/>
Aeroflot slipped to a net loss of Rb26.2b ($356m) in Q2, from a profit of Rb2.73b a year ago, but is now seeing a “gradual recovery” in domestic flights. “To support this positive trend, management plans to continue the implementation of strict cost-optimisation measures,” the SkyTeam member stresses, noting its “constant dialogue with partners to improve terms and conditions in order to preserve jobs and the company’s business and weather the current global crisis”. Passenger turnover plunged 92% in the second quarter, amid a near-total cessation of international flying – excepting repatriation missions – and “a significant reduction in domestic flights due to quarantine-related travel restrictions in certain regions of Russia”. Financial results prepared in accordance with Russian accounting standards show second-quarter revenue down 85%. Across the year’s first half, passenger turnover fell 57% and revenue 52%. “Management’s decision to decrease capacity by 47.8% had a positive impact on costs,” says Aeroflot. As unit passenger revenue dropped 15%, the airline’s first-half net loss trebled to Rb42.4b, despite a “40%-plus” increase in cargo revenue as the widebody fleet was repurposed to carry freight.<br/>