European MRO AFI KLM E&M has slumped to a €318 million Q2 loss, due to a fall in both third party and in-house maintenance requirements.
“Revenue highly declined in all three main businesses”, Air France KLM said in its results presentation. `’In the second quarter, all clients of the E&M business have been impacted by the Covid-19 crisis resulting in a sharp decrease of revenues. Operating costs have been reduced in the second quarter 2020 by a reduced maintenance activity level, partial activity pay schemes for employees and other initiated cost savings measures.
A firm made a €210 million provision in the Q2 operating result to take into account client situations including cash difficulties, fleet decreases and bankruptcies, and spare parts surplus due to the worldwide fleet reductions expected as a result of the current crisis.
"The E&M business is also strongly impacted by the activity decrease of the Air France-KLM Group airlines,” the company said.
The firm’s maintenance order book is assessed to $9.6 billion at 30 June 2020 a decrease of $1.9 billion compared to 31 December 2019.