Air France’s withdrawal of the Airbus A380 fleet has resulted in its parent taking a €126 million ($136 million) impairment on the aircraft type.
The flag-carrier disclosed last year that it would retire its A380 fleet by 2022, just 13 years after introducing the double-deck type.
Air France originally ordered 12 A380s but only took delivery of 10, having swapped the remaining pair for A350s in 2016.
Nine of its 10 A380s remain operational, according to Cirium fleets data.
Air France-KLM Group states in its newly-released full-year financial results that the progressive early phase-out of the A380s is likely to cost €370 million.
This figure, it says, is mainly due to accelerated depreciation of the aircraft which would normally have assumed a 20-year operational life.
The company has taken a €126 million charge for the 2019 financial year.
“Impact of the change in depreciation slopes will be spread over the period through to 2022, consistent with the retirement timetable for the aircraft,” it states.
The difference between the initial and accelerated depreciation amounts to €52 million, the company says.
“Depreciation slopes have been revised so that the net book value, as of the date of the aircraft’s phase-out, converges with the estimated realisable value,” it says.
Air France-KLM says the remaining €74 million of the €126 million charge relates to other asset aspects of the A380 operation, particularly cabin retrofit programmes, penalties on contracts, and spares.
