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AIR FRANCE-KLM FIRST QUARTER 2022
May 05, 2022
FIRST QUARTER 2022 |
First quarter:
EBITDA positive at 221 million euros
Net income at -552 million euros, showing a 930 million euros improvement compared to the same quarter last year, supported by a revenue development at 4,445 million euros, which is 2,284 million euros higher than last year
Adjusted operating free cash flow positive at 630 million euros thanks to strong ticket sales. Compared to the same quarter in 2021 the adjusted operating free cash flow improved by 1,974 million euros
Net debt at 7.7 billion euros, down by 0.6 billion euros compared to end of 2021 thanks to a positive adjusted operating free cash flow
Group CEO Mr. Benjamin Smith said:
“The performance of the Air France-KLM Group over the first quarter of 2022 confirms that recovery is here. In spite of a challenging context, with the continued effect of the Omicron variant, the situation in Ukraine and the sharp increase of fuel prices, the Group posted once again a positive EBITDA and recorded strong bookings for the following quarters. March was notably very encouraging with a significant increase in demand for corporate and premium traffic, complementing the already strong leisure and VFR (visiting friends and relatives) demand across our worldwide network. This paves the way for a successful summer season in all our activities, which we continue to strengthen through our extensive transformation plan.”
Outlook:
Context:
The start of the First quarter was hampered by the Omicron variant, mainly on the short and medium haul, while the outbreak of the Ukraine war resulted in higher fuel price and a slowdown in bookings during a very short period.
The recovery accelerated in March with highly dynamic bookings for the summer season.
Capacity
In this recovery context, the Group expects capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at an index in the range of:
80% to 85% in the Second quarter of 2022
85% to 90% in the Third quarter of 2022
All indices compared to the respective period of 2019.
Capacity in Available Seat Kilometers for Transavia is expected at an index above 100 for the second and third quarter compared to 2019.
Yield
A healthy yield environment for the remainder of 2022 is expected with a strong summer demand resulting in yield levels above 2019
Operating result expected
Break-even in the second quarter
Significantly positive in the third quarter
Cash
As of March 31 2022, the Group has a sufficient 10.8 billion euros of liquidity and credit lines at disposal.
Full year 2022 Net Capex spending is estimated at circa 2.5 billion euros, which is 80% fleet & fleet related and 20% related to IT and ground.
Air France-KLM made progress on the equity strengthening measures
Thanks to KLM's strong performance, KLM's State backed RCF has been partly repaid on May 3rd for 311 million euros. In addition, KLM expects to strengthen its balance sheet with positive results. Further equity measures are being contemplated for the coming year.
Progress has been made on refinancing up to 500 million euros of Air France’s assets, mainly through quasi-equity instruments to redeem French State aid. Air France is currently engaged in advanced discussions with various partners.
The Group is closely monitoring capital strengthening measures such as a capital increase with pre-emptive rights for shareholders, as well as the issuance of quasi equity instruments such as straight and convertible perpetual bonds, to further restore equity and accelerate the State aid redemption.
In total, these measures including the refinancing of Air France’s assets could represent up to 4.0 billion euros. The timing and sizing of each transaction will depend on market conditions and remain subject to the approval of the European Commission as well as legal and regulatory approvals.
Air France-KLM Group: Q1 results are promising and pave the way towards a strong summer
First Quarter | |||
2022 | Change vs 2021 | Change | |
Passengers (thousands) | 14,577 | +201.4% | |
Capacity (ASK m) | 58,064 | +67.8% | |
Traffic (RPK m) | 43,134 | +207.8% | |
Passenger unit revenue per ASK (€ cts) | 5.39 | +86.2% | +83.2% |
Group unit revenue per ASK (€ cts) | 6.76 | +33.7% | +31.1% |
Group unit cost per ASK (€ cts) at constant fuel | 7.36 | -13.1% | -18.9% |
Revenues (€m) | 4,445 | +105.7% | +104.4% |
EBITDA (€m) | 221 | 849 | 864 |
Operating result (€m) | -350 | 830 | 844 |
Operating margin (%) | -7.9% | +46.7 pt | +47.0 pt |
Net income - Group part (€m) | -552 | +930 | |
Adj. operating free cash flow (€m) | 630 | +1,974 | |
Net debt at end of period (€m)1 | 7,655 | -561 | |
In the First quarter 2022, the Air France-KLM Group posted a positive EBITDA of 221 million euros, up by 864 million euros at a constant currency compared to last year, and was driven by an increase of capacity and unit cost reduction. In parallel, the increase of load factor and yield generated an increase of the unit revenue.
Net income amounted to -552 million euros in the First quarter 2022, an increase of 930 million euros compared to last year.
Thanks to transformation programs, unit cost down while Group capacity 23% below 2019
Despite the Group capacity 23% down compared to the same quarter in 2019, the unit cost was 0.1% reduced at a constant fuel price and constant currency thanks to the ongoing transformation programs.
Compared to December 2019 the number of Full Time Equivalents (FTE’s) of Air France excluding Transavia reduced by 16% and KLM by 14%. In the First quarter Air France excluding Transavia decreased 400 FTE’s and another 300 FTE’s will leave this year. The total reduction of FTE for Air France excluding Transavia will be 17% compared to December 2019.
The staff cost decreased in the First quarter by 23% compared to the same quarter in 2019 thanks to FTE reduction and government support on wages. Corrected for government support on wages the staff cost decreased by 12%.
Business review
Network: Significant improvement in operating result
Network | First Quarter | ||
2022 | Change vs 2021 | Change | |
Total revenues (€m) | 3,894 | +109.6% | +105.9% |
Scheduled revenues (€m) | 3,675 | +114.6% | +110.3% |
Operating result (€m) | -309 | +751 | +760 |
First quarter 2022 revenues increased by 105.9% at constant currency to 3,894 million euros. The operating result was negative and amounted to -309 million euros, a 760 million euros increase at constant currency compared to last year.
Passenger network: Unit revenue increase supported by both load factor and yield
First Quarter | |||
Passenger network | 2022 | Change vs 2021 | Change |
Passengers (thousands) | 11,942 | +167.3% | |
Capacity (ASK m) | 52,570 | +56.5% | |
Traffic (RPK m) | 38,866 | +189.3% | |
Load factor | 73.9% | +33.9 pt | |
Total passenger revenues (€m) | 2,983 | +192.8% | +189.7% |
Scheduled passenger revenues (€m) | 2,879 | +198.5% | +193.6% |
Unit revenue per ASK (€ cts) | 5.48 | +90.7% | +87.6% |
First quarter 2022, capacity in Available Seat Kilometers (ASK) was 56.5% higher than last year and at 75% of 2019 First quarter level which was in the middle of the Group’s guidance provided during the Fourth quarter 2021 results presentation.
The beginning of the First quarter was impacted by the spread of Omicron variant and additional travel restrictions, with the short and medium-haul routes more impacted. The borders reopening and progressive removal of travel constraints enabled the Group to post strong March results.
In response to the rise in fuel prices and other external costs, the Group proceeded to different fares increases during the first quarter on all its long-haul flights. The amount of the increase varies according to destination and class of travel, and applies to flights operated by Air France and KLM. First quarter 2022 yield was above 2019 thanks to strong demand and the quick implementation of the fares adjustments.
The First quarter result is driven by a strong performance on Caribbean & Indian Ocean, Africa and South America:
North Atlantic: Most travel restrictions have been lifted in the course of February/March with a strong capacity increase since mid-January.
South America saw very positive trends during the first quarter resulting in higher capacity, load factors at 85% and yield above 2019.
The Asian routes continued to post strong differences between the regions. During the First quarter China and Japan were rather closed while South East Asia and India posted positive results but could not mitigate the negative impact of China and Japan on the network.
Caribbean & Indian Ocean: Positive trends continued in the first quarter, with a very favourable fare environment and strong traffic performance.
Africa: The start of the year was complicated with Omicron variant. South Africa recovered quickly and the Group observed a good performance on West, Central and East Africa.
The Middle-East region stayed strong.
Medium-haul: Omicron spread lead to a strong capacity reduction at the beginning of the year. Yield is at 2019 levels helped by capacity constraints. Corporate traffic gradually increased during the quarter.
Short-haul: The traffic and yield were impacting by some restrictions and a lack of corporate traffic at the start of the year. March saw a good improvement of corporate traffic.
During the First quarter, Air France added three Airbus 350-900, two Airbus A220-300 and one Embraer 190 to its fleet while Air France phased out one Boeing B777-200, one Airbus A320, two Airbus A319, three A318 and two Embrear 145.
KLM phased in two Embraer 195 E2 and phased out one Embraer 190. The Group will continue to introduce new generation aircraft to its fleet in order to improve its economic and environmental performance.
Cargo: Increase in yield drove the increase in cargo revenues
First Quarter | |||
Cargo business | 2022 | Change vs 2021 | Change |
Tons (thousands) | 236 | -11.9% | |
Capacity (ATK m) | 2,974 | +10.7% | |
Traffic (RTK m) | 1,766 | -14.9% | |
Load factor | 59.4% | -17.8 pt | |
Total Cargo revenues (€m) | 910 | +8.5% | +5.8% |
Scheduled cargo revenues (€m) | 796 | +6.4% | +3.9% |
Unit revenue per ATK (€ cts ) | 26.78 | -3.8% | -6.1% |
Compared to the First quarter 2021, capacity increased by 10.7% in Available Ton Kilometers, mainly due to the increase in belly capacity, while traffic decreased by 14.9% resulting in a decrease of load factor by 17.8 points. This reduction in load factor partly compensated by the yield increase led to a unit revenue per ATK down 6.1% at constant currency.
Cargo capacity in the First quarter is still 14% below the capacity in the First quarter of 2019 while the demand remains high, resulting in total revenues that are 66% higher than in the First quarter of 2019. This increase in revenues is fully driven by a higher yield thanks to the focus on Pharmaceutical and Express deliveries while the load factor is back at 2019 levels. The yield in North Asia increased significantly due to the closure of the Russian aerospace.
The Group ordered four Airbus 350 full freighter to strengthen his presence on the cargo market and signed a contract with DHL on Sustainable aviation fuel.
Transavia: Capacity approaching pre-crisis level with a load factor close to 80%
First Quarter | ||
Transavia | 2022 | Change vs 2021 |
Passengers (thousands) | 2,581 | +633.2% |
Capacity (ASK m) | 5,494 | +443.1% |
Traffic (RPK m) | 4,268 | +632.6% |
Load factor | 77.7% | +20.1 pt |
Total passenger revenues (€m) | 249 | +572.7% |
Unit revenue per ASK (€ cts) | 4.57 | +24.0% |
Unit cost per ASK (€ cts) | 6.24 | -59.9% |
Operating result (€m) | -92 | +28 |
In the First quarter of 2022 the trend of the second half 2021 continued with a further recovery in demand for leisure traffic in Europe and North Africa. Compared to last year, the capacity in the First quarter increased by 443.1% while traffic increased by 632.6% and the number of passengers increased by 633.2%. Last year First quarter was heavily impacted by lockdown measures in France and the Netherlands.
The Operating result was negative at 92 million euros, although improved by 28 million euros compared to the First quarter of 2021.
Capacity in the First quarter was close to the level of the First quarter of 2019 and unit revenue even above First quarter 2019 mainly driven by a strong yield improvement.
The fleet of Transavia is approaching 100 aircraft to further capture the strong demand of leisure traffic in Europe.
Maintenance business: Operating margin above 2019 level
First Quarter | |||
Maintenance | 2022 | Change vs 2021 | Change |
Total revenues (€m) | 831 | +33.6% | |
Third-party revenues (€m) | 297 | +15.1% | +24.4% |
Operating result (€m) | 43 | 51 | 56 |
Operating margin (%) | 5.2% | +6.5 pt | +7.3 pt |
The First quarter operating result stood at 43 million euros, an increase of 56 million euros at constant currency versus the First quarter 2021. Although the First quarter 2022 result was still impacted by the Covid-19 crisis, the operating result is improving thanks to a higher activity and an operational improvement.
Total revenues increased by 33.6% in the First quarter while third party revenues increased by 15.1% giving encouraging signs of the recovery. The increase in internal revenues is consistent with the activity increase of the Air France-KLM airlines compared to the First quarter 2021.
The operating margin stood at 5.2% which is 1.3 point higher than the operating results in the First quarter 2019.
Air France-KLM entered into exclusive negotiations with CFMI for the engine configuration of its future Airbus A320neo family fleet.
First quarter: The strong sales of Q1 generated positive adjusted operating free cash flow, enabling a reduction of Net Debt by €550m
First quarter | ||
In € million | 2022 | Change vs 2021 |
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m) | 112 | +857 |
Cash out related to Voluntary Departure Plans (€m) | -56 | -11 |
Change in Working Capital Requirement (WCR) (€m) | 1,325 | +1,417 |
Net cash flow from operating activities (€m) | 1,381 | 2,263 |
Net investments* (€m) | -533 | -287 |
Operating free cash flow (€m) | 848 | +1,976 |
Repayment of lease debt | -218 | -2 |
Adjusted operating free cash flow** | 630 | +1,974 |
* Sum of ‘Purchase of property, plant and equipment and intangible assets’ and ‘Proceeds on disposal of property, plant and equipment and intangible assets’ as presented in the consolidated cash flow statement.
** The “Adjusted operating free cash flow” is operating free cash flow after deducting the repayment of lease debt.
The Group generated an adjusted operating free cash flow in the First quarter 2022 of 630 million euros, an increase of 1,974 million euros compared to last year, mainly driven by a positive change in working capital of 1,325 million euros. This was the fourth quarter in a row that the adjusted operating free cash flow was positive.
In € million | 31 Mar 2022 | 31 Dec 2021 |
Net debt | 7,655 | 8,216 |
EBITDA trailing 12 months | 1,595 | 745 |
Net debt/EBITDA trailing 12 months | 4.8 x | 11.0 x |
Operating result for both airlines improved significantly
First Quarter | ||
2022 | Change vs 2021 | |
Air France Group Operating result (€m) | -363 | +478 |
Operating margin (%) | -13.5% | +49.2 pt |
KLM Group Operating result (€m) | 3 | +340 |
Operating margin (%) | 0.2% | +36.4 pt |
Significant improvement in Operating result for both airlines
Air France more impacted by Omicron in January
Positive operating result KLM thanks to strong improvement in load factor
Different government support on wages scheme
******
The first Quarter 2022 accounts are not audited by the Statutory Auditors.
The results presentation is available at www.airfranceklm.com on May 05, 2022 from 7:15 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on May 05, 2022 at 08.30 am CET.
To connect to the conference call, please dial:
France: Local +33 (0)1 70 72 25 50
Netherlands: Local +31 (0) 20 703 8211
UK: Local +44 (0)330 165 3655
US: Local +1 323-701-0160
Confirmation code: 8173232
Investor Relations | Press | |
Frederic Kahane | Michiel Klinkers | |
+33 1 49 89 52 59 | +33 1 49 89 52 60 | +33 1 41 56 56 00 |
frkahane@airfranceklm.com |
Income Statement
First quarter | |||
€m | 2022 | 2021* | Change |
Revenues from ordinary activities | 4,445 | 2,161 | +105.7% |
Aircraft fuel | -996 | -463 | +115.1% |
Chartering costs | -101 | -69 | +46.4% |
Landing fees and en route charges | -348 | -215 | +61.9% |
Catering | -142 | -58 | +144.8% |
Handling charges and other operating costs | -320 | -191 | +67.5% |
Aircraft maintenance costs | -515 | -345 | +49.3% |
Commercial and distribution costs | -154 | -59 | +161.0% |
Other external expenses | -333 | -298 | +11.7% |
Salaries and related costs | -1,522 | -1,167 | +30.4% |
Taxes other than income taxes | -47 | -41 | +14.6% |
Other income and expenses | 254 | 117 | +117.1% |
EBITDA | 221 | -628 | nm |
Amortization, depreciation and provisions | -571 | -552 | +3.4% |
Income from current operations | -350 | -1,180 | -70.3% |
Sales of aircraft equipment | 0 | -3 | -100.0% |
Other non-current income and expenses | -6 | -4 | +50.0% |
Income from operating activities | -356 | -1,187 | -70.0% |
Cost of financial debt | -141 | -189 | -25.4% |
Income from cash and cash equivalent | -2 | 1 | nm |
Net cost of financial debt | -143 | -188 | -23.9% |
Other financial income and expenses | -47 | -90 | -47.8% |
Income before tax | -546 | -1,465 | -62.7% |
Income taxes | -4 | -11 | -63.6% |
Net income of consolidated companies | -550 | -1,476 | -62.7% |
Share of profits (losses) of associates | -2 | -7 | -71.4% |
Net income for the period | -552 | -1,483 | -62.8% |
Minority interest | 0 | -1 | nm |
Net income for the period – Group part | -552 | -1,482 | -62.8% |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Consolidated Balance Sheet
Assets | 31 Mar 2022 | 31 Dec 2021* |
€m | ||
Goodwill | 222 | 222 |
Intangible assets | 1,251 | 1,235 |
Flight equipment | 10,537 | 10,466 |
Other property, plant and equipment | 1,378 | 1,402 |
Right-of-use assets | 5,205 | 5,148 |
Investments in equity associates | 107 | 109 |
Other non-current financial assets | 1,026 | 951 |
Non-current derivatives financial assets | 190 | 143 |
Deferred tax assets | 223 | 278 |
Total non-current assets | 20,139 | 19,954 |
Assets held for sale | 76 | 74 |
Other current financial assets | 487 | 484 |
Current derivatives financial assets | 747 | 469 |
Inventories | 620 | 567 |
Trade receivables | 1,952 | 1,511 |
Other current assets | 1,126 | 966 |
Cash and cash equivalents | 7,219 | 6,658 |
Total current assets | 12,227 | 10,729 |
Total assets | 32,366 | 30,683 |
Liabilities and equity | 31 Mar 2022 | 31 Dec 2021* |
In million euros | ||
Issued capital | 643 | 643 |
Additional paid-in capital | 4,949 | 4,949 |
Treasury shares | -25 | -25 |
Perpetual bonds | 3,205 | 3,151 |
Reserves and retained earnings | -12,996 | -12,542 |
Equity attributable to equity holders of Air France-KLM | -4,224 | -3,824 |
Non-controlling interests | 8 | 8 |
Total Equity | -4,216 | -3,816 |
Pension provisions | 1,937 | 1,939 |
Non-current return obligation liability and other provisions | 4,100 | 4,055 |
Non-current financial liabilities | 11,438 | 11,274 |
Non-current lease debt | 3,021 | 2,924 |
Non-current derivatives financial liabilities | 11 | 25 |
Deferred tax liabilities | 4 | 1 |
Other non-current liabilities | 2,538 | 2,555 |
Total non-current liabilities | 23,049 | 22,773 |
Current return obligation liability and other provisions | 851 | 885 |
Current financial liabilities | 1,068 | 1,215 |
Current lease debt | 826 | 825 |
Current derivatives financial liabilities | 37 | 46 |
Trade payables | 2,329 | 1,850 |
Deferred revenue on ticket sales | 3,903 | 2,644 |
Frequent flyer programs | 873 | 888 |
Other current liabilities | 3,643 | 3,369 |
Bank overdrafts | 3 | 4 |
Total current liabilities | 13,533 | 11,726 |
Total equity and liabilities | 32,366 | 30,683 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Statement of Consolidated Cash Flows from 1st January until 31 March 2022
€m | 31 Mar 2022 | 31 Mar 2021* |
Net income from continuing operations | -552 | -1,483 |
Amortization, depreciation and operating provisions | 571 | 553 |
Financial provisions | 35 | 27 |
Loss (gain) on disposals of tangible and intangible assets | 0 | 3 |
Derivatives – non monetary result | -5 | -41 |
Unrealized foreign exchange gains and losses, net | 31 | 125 |
Impairment | 5 | 8 |
Other non-monetary items | -32 | 4 |
Share of (profits) losses of associates | 2 | 7 |
Deferred taxes | 1 | 7 |
Financial Capacity | 56 | -790 |
(Increase) / decrease in inventories | -48 | 8 |
(Increase) / decrease in trade receivables | -411 | -72 |
Increase / (decrease) in trade payables | 492 | -85 |
Increase / (decrease) in advanced ticket sales | 1,245 | -153 |
Change in other receivables and payables | 47 | 210 |
Change in working capital requirement | 1,325 | -92 |
Net cash flow from operating activities | 1,381 | -882 |
Acquisition of subsidiaries, of shares in non-controlled entities | 0 | -4 |
Purchase of property, plant and equipment and intangible assets | -704 | -466 |
Proceeds on disposal of property, plant and equipment and intangible assets | 171 | 220 |
Decrease (increase) in net investments, more than 3 months | 5 | 1 |
Net cash flow used in investing activities | -528 | -249 |
Issuance of debt | 291 | 302 |
Repayment on debts | -304 | -331 |
Payments on lease debt | -218 | -216 |
New loans | -87 | -18 |
Repayment on loans | 22 | 20 |
Net cash flow from financing activities | -296 | -243 |
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold) | 5 | 7 |
Change in cash and cash equivalents and bank overdrafts | 562 | -1,367 |
Cash and cash equivalents and bank overdrafts at beginning of period | 6,654 | 6,422 |
Cash and cash equivalents and bank overdrafts at end of period | 7,216 | 5,055 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Return on capital employed (ROCE)
In million euros | 31 Mar 2022 | 31 Dec 2021 | 30* Sep 2021 | 30* June 2021 | 31* Mar 2021 | 31* Dec 2020 | 30* Sep 2020 | 30* June 2020 |
Goodwill and intangible assets | 1,473 | 1,457 | 1,456 | 1,464 | 1,479 | 1,445 | 1,470 | 1,500 |
Flight equipment | 10,537 | 10,466 | 10,478 | 10,645 | 10,800 | 11,031 | 11,009 | 10,919 |
Other property, plant and equipment | 1,378 | 1,402 | 1,418 | 1,453 | 1,476 | 1,548 | 1,535 | 1,551 |
Right of use assets | 5,205 | 5,148 | 5,061 | 5,033 | 4,795 | 4,678 | 4,789 | 4,938 |
Investments in equity associates | 107 | 109 | 172 | 166 | 223 | 230 | 224 | 267 |
Financial assets excluding marketable securities and financial deposits | 158 | 157 | 147 | 147 | 146 | 146 | 135 | 133 |
Provisions, excluding pension, cargo litigation and restructuring | -4,239 | -4,173 | -4,180 | -4,033 | -4,083 | -3,922 | -4,002 | -4,132 |
WCR, excluding market value of derivatives | -9,589 | -8,262 | -7,995 | -7,745 | -6,410 | -6,505 | -6,894 | -6,779 |
Capital employed | 5,030 | 6,304 | 6,557 | 7,130 | 8,426 | 8,651 | 8,266 | 8,397 |
Average capital employed (A) | 6,255 | 8,435 | ||||||
Adjusted results from current operations | -795 | -4,919 | ||||||
- Dividends received | 0 | 0 | ||||||
- Share of profits (losses) of associates | -22 | -56 | ||||||
- Normative income tax | 217 | 1,406 | ||||||
Adjusted result from current operations after tax (B) | -600 | -3,569 | ||||||
ROCE, trailing 12 months (B/A) | -9.6% | -42.3% | ||||||
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Net debt
Balance sheet at | ||
€m | 31 Mar 2022 | 31 Dec 2021 |
Current and non-current financial liabilities | 12,506 | 12,489 |
Current and non-current lease debt | 3,847 | 3,749 |
Accrued interest | -162 | -128 |
Deposits related to financial liabilities | -101 | -99 |
Deposits related to lease debt | -89 | -85 |
Derivatives impact on debt | -18 | -14 |
Gross financial debt (A) | 15,983 | 15,912 |
Cash and cash equivalents | 7,219 | 6,658 |
Marketable securities | 185 | 189 |
Pledged liquidity | 323 | 324 |
Triple A bonds | 604 | 529 |
Bank overdrafts | -3 | -4 |
Liquidities net of undrawn credit lines (B) | 8,328 | 7,696 |
Net debt (A) – (B) | 7,655 | 8,216 |
Adjusted operating free cash flow
First quarter | ||
€m | 2022 | 2021 |
Net cash flow from operating activities | 1,381 | -882 |
Purchase of property, plant, equipment and intangible assets | -704 | -466 |
Proceeds on disposal of property, plant, equipment and intangible assets | 171 | 220 |
Operating free cash flow | 848 | -1,128 |
Payments on lease debts | -218 | -216 |
Adjusted operating free cash flow | 630 | -1,344 |
Bridge from EBITDA to Financial capacity
| First quarter | |
2022 | 2021* | |
EBITDA | 221 | -628 |
Provisions (CO2 and other) | 11 | 42 |
Correction of spare parts inventory | 1 | 1 |
Addition to pension provisions | 32 | 76 |
Reversal to pension provisions (cash-out) | -13 | -43 |
Sales of tangible and intangible assets (excluding aeronauticals) | 0 | -39 |
Income from operation activities - cash impact | 252 | -591 |
Restructuring costs | -56 | -45 |
Other non-current income and expenses | -1 | 0 |
Cost of financial debt | -144 | -168 |
Financial income | -5 | -4 |
Realized foreign exchange gain/loss | 14 | 27 |
Termination of trading hedges - cash | 0 | -6 |
Current income tax | -4 | -3 |
Financial capacity | 56 | -790 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Unit cost: net cost per ASK
First quarter | ||
2022 | 2021* | |
Revenues (in €m) | 4,445 | 2,161 |
Income/(loss) from current operations (in €m) -/- | 350 | 1,180 |
Total operating expense (in €m) | 4,795 | 3,341 |
Passenger network business – other revenues (in €m) | -105 | -55 |
Cargo network business – other revenues (in €m) | -114 | -91 |
Third-party revenues in the maintenance business (in €m) | -297 | -259 |
Transavia - other revenues (in €m) | 2 | 0 |
Third-party revenues of other businesses (in €m) | -6 | -7 |
Net cost (in €m) | 4,276 | 2,931 |
Capacity produced, reported in ASK1 | 58,064 | 34,598 |
Net cost per ASK (in € cents per ASK) | 7.36 | 8.47 |
Gross change | -13.1% | |
Currency effect on net costs (in €m) | -48 | |
Change at constant currency | -14.5% | |
Fuel price effect (in €m) | 162 | |
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK) | 7.36 | 9.08 |
Change at constant currency and fuel price basis | -18.9% | |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
(1) The capacity produced by the transportation activities is combined by adding the capacity of the Passenger network (in ASK) to that of Transavia (in ASK).
Group results
Air France Group
First quarter | ||
2022 | Change | |
Revenue (in €m) | 2,681 | +100.0% |
EBITDA (in €m) | -23 | +491 |
Operating result (en m€) | -363 | +478 |
Operating margin (%) | -13.5% | +49.2 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | -88 | +534 |
Operating cash flow (before WCR and restructuring) margin | -3.3% | +43.1 pt |
KLM Group | First quarter | |
2022 | Change | |
Revenue (in €m) | 1,903 | +104.7% |
EBITDA (in €m) | 234 | +346 |
Operating result (en m€) | 3 | +340 |
Operating margin (%) | 0.2% | +36.4 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | 198 | +311 |
Operating cash flow (before WCR and restructuring) margin | 10.4% | +22.6 pt |
NB: Sum of individual airline results does not add up to Air France-KLM total due to intercompany eliminations at Group level
Group fleet at 31 March 2022
Aircraft type | AF | KL | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 31/12/21 |
B777-300 | 43 | 16 | 18 | 17 | 24 | 59 | 59 | ||
B777-200 | 20 | 15 | 27 | 8 | 35 | 33 | -3 | ||
B787-9 | 10 | 13 | 5 | 6 | 12 | 23 | 23 | ||
B787-10 | 6 | 2 | 4 | 6 | 5 | ||||
A380-800 | 8 | 4 | 1 | 3 | 8 | ||||
A350-900 | 15 | 3 | 6 | 6 | 15 | 15 | 3 | ||
A330-300 | 5 | 5 | 5 | 5 | 1 | ||||
A330-200 | 15 | 6 | 11 | 10 | 21 | 21 | |||
Total Long-Haul | 111 | 61 | 0 | 70 | 34 | 68 | 172 | 161 | 1 |
B737-900 | 5 | 5 | 5 | 5 | |||||
B737-800 | 31 | 94 | 31 | 10 | 84 | 125 | 120 | 4 | |
B737-700 | 10 | 4 | 7 | 7 | 14 | 14 | |||
A321 | 19 | 11 | 8 | 19 | 19 | ||||
A320 | 42 | 4 | 4 | 34 | 42 | 40 | -2 | ||
A319 | 28 | 12 | 16 | 28 | 25 | -3 | |||
A318 | 12 | 6 | 6 | 12 | 12 | ||||
A220-300 | 8 | 5 | 3 | 8 | 8 | 2 | |||
Total Medium-Haul | 109 | 46 | 98 | 81 | 14 | 158 | 253 | 243 | 1 |
Canadair Jet 1000 | 14 | 14 | 14 | 10 | -1 | ||||
Canadair Jet 700 | |||||||||
Embraer 195 E2 | 9 | 9 | 9 | 9 | 2 | ||||
Embraer 190 | 19 | 30 | 16 | 5 | 28 | 49 | 49 | 2 | |
Embraer 175 | 17 | 3 | 14 | 17 | 17 | ||||
Embraer 170 | 15 | 10 | 5 | 15 | 13 | -2 | |||
Embraer 145 | 3 | 3 | 3 | ||||||
Total Regional | 51 | 56 | 0 | 46 | 19 | 42 | 107 | 98 | 1 |
B747-400ERF | 3 | 3 | 3 | 3 | |||||
B747-400BCF | 1 | 1 | 1 | 1 | |||||
B777-F | 2 | 2 | 2 | 2 | |||||
Total Cargo | 2 | 4 | 0 | 4 | 0 | 2 | 6 | 6 | 0 |
Total | 273 | 167 | 98 | 201 | 67 | 270 | 538 | 508 | 3 |
FIRST QUARTER 2022 TRAFFIC
Passenger network activity*
Q1 | |||
Total Passenger network* | 2022 | 2021 | Variation |
Passengers carried (‘000s) | 11,942 | 4,467 | 167.3% |
Revenue pax-kilometers (m RPK) | 38,866 | 13,431 | 189.4% |
Available seat-kilometers (m ASK) | 52,570 | 33,586 | 56.5% |
Load factor (%) | 73.9% | 40.0% | 33.9 |
Long-haul | |||
Passengers carried (‘000s) | 4,384 | 1,569 | 179.5% |
Revenue pax-kilometers (m RPK) | 32,326 | 10,964 | 194.8% |
Available seat-kilometers (m ASK) | 43,240 | 29,326 | 47.4% |
Load factor (%) | 74.8% | 37.4% | 37.4 |
North America | |||
Passengers carried (‘000s) | 1,241 | 274 | 352.8% |
Revenue pax-kilometers (m RPK) | 9,056 | 2,030 | 346.2% |
Available seat-kilometers (m ASK) | 13,152 | 7,063 | 86.2% |
Load factor (%) | 68.9% | 28.7% | 40.1 |
Latin America | |||
Passengers carried (‘000s) | 675 | 195 | 246.9% |
Revenue pax-kilometers (m RPK) | 6,511 | 1,863 | 249.4% |
Available seat-kilometers (m ASK) | 7,657 | 5,293 | 44.7% |
Load factor (%) | 85.0% | 35.2% | 49.8 |
Asia / Middle East | |||
Passengers carried (‘000s) | 634 | 275 | 130.7% |
Revenue pax-kilometers (m RPK) | 4,392 | 1,848 | 137.7% |
Available seat-kilometers (m ASK) | 7,219 | 7,244 | (0.3%) |
Load factor (%) | 60.8% | 25.5% | 35.3 |
Africa | |||
Passengers carried (‘000s) | 816 | 417 | 95.8% |
Revenue pax-kilometers (m RPK) | 4,792 | 2,266 | 111.5% |
Available seat-kilometers (m ASK) | 6,298 | 4,801 | 31.2% |
Load factor (%) | 76.1% | 47.2% | 28.9 |
Caribbean / Indian Ocean | |||
Passengers carried (‘000s) | 1,018 | 408 | 149.4% |
Revenue pax-kilometers (m RPK) | 7,575 | 2,957 | 156.2% |
Available seat-kilometers (m ASK) | 8,914 | 4,926 | 81.0% |
Load factor (%) | 85.0% | 60.0% | 25.0 |
Short and Medium-haul | |||
Passengers carried (‘000s) | 7,557 | 2,899 | 160.7% |
Revenue pax-kilometers (m RPK) | 6,541 | 2,467 | 165.1% |
Available seat-kilometers (m ASK) | 9,331 | 4,260 | 119.1% |
Load factor (%) | 70.1% | 57.9% | 12.2 |
* Air France and KLM
Transavia activity
Q1 | |||
Transavia | 2022 | 2021 | Variation |
Passengers carried (‘000s) | 2,581 | 352 | 633.2% |
Revenue pax-kilometers (m RPK) | 4,268 | 583 | 632.6% |
Available seat-kilometers (m ASK) | 5,494 | 1,011 | 443.2% |
Load factor (%) | 77.7% | 57.6% | 20.1 |
Total Group passenger activity**
Q1 | |||
Total Group** | 2022 | 2021 | Variation |
Passengers carried (‘000s) | 14,522 | 4,819 | 201.3% |
Revenue pax-kilometers (m RPK) | 43,134 | 14,014 | 207.8% |
Available seat-kilometers (m ASK) | 58,064 | 34,598 | 67.8% |
Load factor (%) | 74.3% | 40.5% | 33.8 |
** Air France, KLM and Transavia
Cargo activity
Q1 | |||
Total Group | 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 1,766 | 2,074 | (14.9%) |
Available tonne-km (m ATK) | 2,974 | 2,688 | 10.6% |
Load factor (%) | 59.4% | 77.2% | (17.8) |
Air France activity
Q1 | |||
Total Passenger network activity | 2022 | 2021 | Variation |
Passengers carried (‘000s) | 7,105 | 3,046 | 133.3% |
Revenue pax-kilometers (m RPK) | 23,087 | 8,568 | 169.5% |
Available seat-kilometers (m ASK) | 30,871 | 16,415 | 88.1% |
Load factor (%) | 74.8% | 52.2% | 22.6 |
Long-haul | |||
Passengers carried (‘000s) | 2,770 | 1,048 | 164.2% |
Revenue pax-kilometers (m RPK) | 19,452 | 6,993 | 178.2% |
Available seat-kilometers (m ASK) | 25,733 | 13,915 | 84.9% |
Load factor (%) | 75.6% | 50.3% | 25.3 |
Short and Medium-haul | |||
Passengers carried (‘000s) | 4,335 | 1,997 | 117.0% |
Revenue pax-kilometers (m RPK) | 3,635 | 1,575 | 130.8% |
Available seat-kilometers (m ASK) | 5,137 | 2,499 | 105.5% |
Load factor (%) | 70.8% | 63.0% | 7.8 |
Q1 | |||
Cargo activity | 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 907 | 906 | 0.2% |
Available tonne-km (m ATK) | 1,657 | 1,333 | 24.3% |
Load factor (%) | 54.7% | 67.9% | (13.2) |
KLM activity
Q1 | |||
Total Passenger network activity | 2022 | 2021 | Variation |
Passengers carried (‘000s) | 4,837 | 1,422 | 240.2% |
Revenue pax-kilometers (m RPK) | 15,780 | 4,863 | 224.5% |
Available seat-kilometers (m ASK) | 21,700 | 17,171 | 26.4% |
Load factor (%) | 72.7% | 28.3% | 44.4 |
Long-haul | |||
Passengers carried (‘000s) | 1,614 | 520 | 210.3% |
Revenue pax-kilometers (m RPK) | 12,874 | 3,971 | 224.2% |
Available seat-kilometers (m ASK) | 17,506 | 15,411 | 13.6% |
Load factor (%) | 73.5% | 25.8% | 47.8 |
Short and Medium-haul | |||
Passengers carried (‘000s) | 3,222 | 901 | 257.5% |
Revenue pax-kilometers (m RPK) | 2,906 | 893 | 225.5% |
Available seat-kilometers (m ASK) | 4,194 | 1,760 | 138.2% |
Load factor (%) | 69.3% | 50.7% | 18.6 |
Q1 | |||
Cargo activity | 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 859 | 1,168 | (26.5%) |
Available tonne-km (m ATK) | 1,317 | 1,355 | (2.8%) |
Load factor (%) | 65.2% | 86.2% | (21.0) |
1 Change versus 31 Dec 2021
Attachment
