Two weeks of shutdowns hit Air France-KLM with an $880 million first-quarter loss, the airline said Thursday (May 7).

Chief Executive Ben Smith warned of mounting losses and doesn't see a recovery in traveller numbers for a couple of years.

"We see the European borders opening at the earliest sometime in September, so we are basing that, we are basing our schedule around that. So, we're viewing by the end of the year 40, 50 percent maximum activity versus last year, and then very slow. We're not seeing a return to 2019 levels until, at a minimum, 2022 - an absolute minimum."

Revenue fell 15% to just over $5 billion in the first quarter.

Air France-KLM also warned operating losses will grow "significantly" in April-June with 95% of flights expected to remain grounded.

The airline said it will open talks with its French unions on workforce cuts.

A meeting is scheduled for June - past talks have been difficult and even led to the resignation of the last Chief Executive.

Another sign of the travel industry's struggles came with aero-engine maker Rolls-Royce announcing it is considering up to 8,000 job cuts.

The British firm has already furloughed 4,000 staff in Britain.

Rolls-Royce also said it would cut production of widebody plane engines to around 250 in 2020, down from its last forecast of 450.

Its shares were down 3.6% in early trade.

Rolls-Royce shares have lost almost 60% of their value this year.