Air France-KLM saw losses narrow in the second quarter.
The Franco-Dutch group said Friday (July 30) that bookings were picking up as travel restrictions eased.
That cut its pretax deficit to about $295 million for the quarter - down by about two-thirds on this time last year.
The company described the previous three months as 'terrible'.
But said the second quarter had seen 'significant improvement'.
And it expects an even better showing over the coming months.
The airline expects to operate up to 70% of its pre-crisis capacity in the third quarter.
That's up from 55-65% in previous estimates, and well ahead of the 45% summer forecast at British Airways-owner IAG.
With a majority of Europeans now fully vaccinated, Air France-KLM is calling on EU countries to move quickly on harmonising travel rules.