The group, which also includes budget airline Transavia, saw 2019 operating income fall €264 million to €1.14 billion, with net income at €290 million, down €130 million. 

Group chief executive Benjamin Smith said: “In 2019, the Air France-KLM Group posted an operating result at €1,141 million with a fuel bill hit and pressure on cargo unit revenues.”

The fuel bill, including hedging, stood at €5.5 billion in 2019, up €550 million. “This increase is mainly explained by a hedging gain of €50 million this year compared to a hedging gain of €650 million last year,” the company said. 

The group said planned mainline expansion of 2-3% in 2020 would be “at the lower end” of this estimate due to the coronavirus.

Transavia will grow 4-6%, with expansion of up to 10% in France, but it said growth possibilities in the Netherlands were restricted due to airport capacity constraints.

This year’s fuel bill is expected to fall by €300 million compared with 2019, which will help offset the cost of retiring the Airbus A380 fleet. Air France is retiring its fleet of 10 Airbus A380s by 2022, just 13 years after introducing them, which is costing it €126 million.

Smith said a new labour agreement and a five-year restructuring plan would put the group on a better financial footing.