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May 6, 2021, 2:00 a.m. EDT

Air France-KLM books loss, sees no 2Q bounce

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By Olivia Bugault

Air France-KLM said Thursday that there will be no improvement during the beginning of its second quarter compared with the previous one as travel restrictions and lockdowns in France, the Netherlands and world-wide remain largely in place.

"The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination," the company said, adding that "the vaccination pace in Europe is slower than in the U.S. where the domestic demand recovers quickly thanks to the high-speed vaccination process."

The Franco-Dutch carrier said capacity at its network airlines was down 46% on year in its first quarter, and it expects capacity to decline by roughly 50% in the April-June period compared with 2019's levels.

Its network capacity should ramp up in the second half of the year as the vaccination campaign progresses and should be at around 55% to 65% of 2019's levels in its third quarter, it said.

Air France-KLM narrowed its net loss to 1.48 billion euros ($1.78 billion) compared with a loss of EUR1.8 billion the year prior, it said. Its loss from current operations fell to EUR1.18 billion from a loss of EUR815 million, and revenue more than halved to EUR2.16 billion from EUR5.02 billion, it said.

"Extraordinary resolutions will be presented at the next annual general meeting, aiming to give the board of directors great flexibility to restore equity," the company said.

Write to Olivia Bugault at olivia.bugault@wsj.com

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