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Air France-KLM Q3 2022 results

AIR FRANCE - KLM
AIR FRANCE - KLM

October 28, 2022

THIRD QUARTER 2022 RESULTS



STRONG RESULTS DRIVEN BY FAVORABLE TRAVEL DEMAND AND CONTINUED GROUP TRANSFORMATION

 

REVENUES, OPERATING RESULT AND MARGIN ABOVE 2019 DESPITE LOWER CAPACITY AND INFLATIONARY PRESSURE ON COST

  • Group revenues at €8.1bn, above 2019 level (+€503m)

  • Group capacity at 89% of 2019 level with load factor at 88% close to 2019 level (90%)

  • Operating result at €1,024m with operating margin at 12.6% above 2019 level (12.0%)

  • Positive Adjusted operating free cash flow for the 6th quarter in a row at €290m

  • Net debt down by €2.3bn euros, compared to end of 2021

    • Return to positive operating result expected for Full Year above €900m1

Commenting on the results, Mr. Benjamin Smith, Group CEO, said:
“Thanks to solid preparation and to our agile approach to capacity, Air France-KLM was able to make the most of the strong travel demand this quarter. While the situation remains unsatisfactory in some key airports-, notably impacting KLM at its Amsterdam Schiphol hub, we saw significant improvements following the operational challenges that had erupted earlier this year. The Group posted a strong operating result in spite of rising fuel costs and inflation, and the Group remains confident in its ability to further increase capacity during the Winter season.
I would like to thank all customers who chose to fly with us, and our employees who did their very best to welcome them at every step of their journey. Going forward we will continue to implement our transformation plan and accelerate our sustainability efforts, as illustrated by the recent signing of long-term SAF supply contracts. This reinforces our position as a responsible leader in transportation, as well as our commitment to being frontrunners in the decarbonization of our industry.”

Strong improvement Third quarter revenues, operating result and margin

 

Third quarter

Nine Months

 

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Revenues (€m)

8,112

+77.6%

+72.2%

19,264

+103.3%

+98.7%

EBITDA (€m)

1,677

883

886

2,829

2,911

2,935

Operating result (€m)

1,024

894

897

1,060

2,864

2,886

Operating margin (%)

12.6%

+9.8 pt

+9.9 pt

5.5%

+24.5 pt

+24.3 pt

Net income – Group part (€m)

460

+653

 

232

+3,396

 

Adj. operating free cash flow (€m)

290

+12

 

2,453

+3,309

 

Net debt at end of period (€m)2

 

 

 

5,965

-2,251

 

In the third quarter 2022, the Air France-KLM Group posted a positive operating result of 1,024 million euros, up by 897 million euros at a constant currency compared to last year. This increase was driven by an increase in capacity, load factor and yield.
Net income amounted to 460 million euros in the third quarter 2022, an increase of 653 million euros compared to last year.

 

Third quarter

Nine Months

 

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Passengers (thousands)

25,002

+47.6%

 

62,328

+116.5%

 

Capacity (ASK m)

79,937

+29.1%

 

210,129

+54.3%

 

Traffic (RPK m)

70,645

+70.7%

 

175,145

+139.1%

 

Passenger load factor

88.4%

21.6pt

 

83.4%

29.6pt

 

Passenger unit revenue per ASK (€ cts)

8.59

+56.7%

+52.0%

7.30

+68.1%

+63.8%

Group unit revenue per ASK (€ cts)

9.49

+42.6%

+37.9%

8.40

+39.8%

+35.8%

Group unit cost per ASK (€ cts) at constant fuel

8.21

+27.3%

+1.8%

7.90

+7.7%

-8.2%

In the Third quarter Air France-KLM welcomed 25 million passengers which is 47.6% above the same quarter in previous year. As capacity increased by 29.1% and traffic increased by 70.7%, the load factor increased by 21.6 points compared to last year.
The passenger unit revenue per ASK of the Group increased by 52% against a constant currency compared to the third quarter 2021. This increase was driven by both load factor and yield.
The group unit cost per ASK at constant fuel and constant currency is up 1.8% versus the same quarter last year.

The unit cost is up 2.9% at a constant fuel price and constant currency (USD & related currencies only) versus the third quarter of 2019, with a capacity down by 11%. The ongoing transformation programs enable Air France-KLM to limit the impact of increasing costs such as airport and ATC charges, and the increase of labor cost at KLM.

Compared to September 2019, the number of Full Time Equivalents (FTE’s) at Air France, excluding Transavia France, decreased by 16% and by 11% at KLM.

In the third quarter staff costs decreased by 6% compared to the same quarter in 2019 thanks to FTE reduction.

Air France-KLM keeps redeeming liquidity support while maintaining a solid cash position

  • In December 2021, Air France-KLM redeemed 0.5 billion euros of the outstanding 4 billion French State guaranteed loan provided by a syndicate of 9 Banks during Covid crisis (“PGE”).

  • By the end of June 2022, KLM fully redeemed its RCF and Dutch State Loan for a total amount of 0.9 billion euros

  • In November 2022 Air France-KLM will pursue deleveraging and reprofiling its unsecured debt and will proceed with the partial and early redemption of the “PGE”. The redemption amount will be 1.0 billion euros out of the 3.5 billion euros outstanding. The remaining bank loan profile will incur no further expected redemption till May 2024 and will remain unchanged beyond (till May 2025). As a result, the Group will reduce its overall financial charges and its exposure to floating rates.

  • During 2022 and 2023, Air France-KLM will contemplate possible hybrid bonds issuances up to €1.2bn subject to market conditions

  • The restoration of negative equity will be done through net profit generation and quasi-equity projects.

OUTLOOK

Context:
In the third quarter, Air France and KLM remained among the most active airlines to accommodate the travel recovery, with a capacity for Network passenger activity at index 85%, in line with the upper end of the guidance provided, meaning that the Group delivered according to its plan. Despite some isolated disruptions in Paris, operations were more robust in France than in other European countries while Schiphol remains in a challenging situation, in a context of a very tight labor market conditions, and imposed capacity restrictions to KLM.
Air France and KLM did their utmost to mitigate these challenges and continue to prioritise safeguarding the trust of their customers. For the third quarter, these disruptions resulted in 60 million euros additional compensation costs compared to the same quarter in 2019.

Capacity
Air France-KLM is confident that the recovery context will continue and therefore, the Group expects the capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at an index of:

  • Circa 85% for the fourth quarter of 2022

  • Circa 80% for the Full Year 2022

  • Circa 90% for the first quarter of 2023

All indices compared to the respective period of 2019.

The capacity of Transavia keeps on growing with Available Seat Kilometers expected at an index of circa 115 for the full year and at an index of circa 140 in both the fourth quarter 2022 and the first quarter 2023 compared to 2019.

Yield
The yield environment should remain healthy for the winter season with a solid demand in line with the capacity, resulting in yield levels above 2019.

Expected operating result
Above 900 million euros for Full Year 2022, based on fuel forward curve at 21 October 2022 and under currently foreseen circumstances.

Cash
As of September 30 2022, the Group has a strong 12.3 billion euros of liquidity and credit lines at its disposal.

Full year 2022 Net Capex spending is estimated at circa 2.3 billion euros, which is 80% fleet & fleet related and 20% IT & Ground related.

BUSINESS REVIEW

Network: Significant improvement in revenues and operating result

Network

Third quarter

Nine Months

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Total revenues (€m)

6,907

+82.2%

+76.1%

16,554

+106.6%

+101.0%

Scheduled revenues (€m)

6,695

+86.2%

+79.3%

15,902

+112.2%

+105.6%

Operating result (€m)

851

+864

+863

894

+2,626

+2,636

Third quarter 2022 total revenues increased by 76.1% at constant currency to 6,907 million euros. The operating result amounted to 851 million euros, which represents an 863 million euros increase at constant currency compared to last year.

Strong summer demand resulting in high yield across the diversified network

 

Third quarter

Nine Months

Passenger network

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Passengers (thousands)

18,980

+49.5%

 

48,478

+110.6%

 

Capacity (ASK m)

67,908

+29.3%

 

182,176

+48.7%

 

Traffic (RPK m)

59,948

+76.2%

 

151,294

+138.7%

 

Load factor

88.3%

+23.5 pt

 

83.0%

+31.3 pt

 

Total passenger revenues (€m)

6,077

+105.6%

+99.5%

13,896

+155.3%

+149.4%

Scheduled passenger revenues (€m)

5,974

+108.4%

+101.0%

13,585

+160.1%

+152.5%

Unit revenue per ASK (€ cts)

8.80

+61.2%

+55.5%

7.46

+75.0%

+69.8%

Third quarter 2022 capacity in Available Seat Kilometers (ASK) was 29.3% higher than last year and at 85% of 2019 third quarter level, which was at the upper end of the Group’s guidance provided during the second quarter 2022 results presentation.

In response to the rise in fuel prices and other external costs, the Group proceeded to several fare increases during the first half of the year across all long-haul flights. The amount of the increase varied according to destination and class of travel, and applied to flights operated by Air France and KLM. Additionally, in line with the strong summer demand, the strong performance in Premium cabins and the solid corporate traffic recovery have all led to a yield above the 2019 level in the third quarter.

The third quarter result is driven by a strong performance of the entire network:

  • North Atlantic: capacity was above 2019 thanks to a strong demand recovery. Yields were strongly up versus 2019 levels due to high demand, fare increases and a positive cabin mix.

  • Latin America: capacity discipline on South America routes combined with a very resilient demand led to a strong yield.

  • Asia: the strong yield performance is due to a limited capacity and the Group continues to observe significant differences between the regions. South East Asia and India showed positive dynamic in yield and traffic while China maintained its zero-Covid policy with severe travel restrictions.

  • Middle-East: performance remained strong during the third quarter, especially on premium cabins and due to an increased traffic on some routes.

  • Caribbean & Indian Ocean: the yields improved thanks to successive fare increases and a positive cabin mix effect.

  • Africa: a strong corporate recovery was observed in all areas. For KLM, the performance was driven by East and South Africa with strong yield increase linked to positive cabin mix and a positive economy yield evolution. For Air France, performance was driven by West and Central African countries with a good steering strategy.

  • Short and Medium-haul: strong booking dynamic since March. KLM is impacted by restrictions on flight departures from Amsterdam which led to traffic restriction. The yield is above 2019, especially on leisure routes with network capacity constraints and a positive competition environment.

During the third quarter, Air France added one Airbus A350-900 and two Airbus A220-300 to its fleet. One B777-200, two Airbus A380-800, two Airbus A320, one Airbus A319, one Airbus A318 and two Canadair Jet 1000 left the fleet. KLM phased in one Embraer 195 E2. The Group will continue to introduce new generation aircraft to its fleet in order to improve its economic and environmental performance.

Cargo: Strong yield increase mitigates lower load factor

 

Third quarter

Nine Months

Cargo business

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Tons (thousands)

223

-10.1%

 

695

-11.9%

 

Capacity (ATK m)

3,538

+15.9%

 

9,853

+17.8%

 

Traffic (RTK m)

1,635

-13.5%

 

5,132

-15.2%

 

Load factor

46.2%

-15.7 pt

 

52.1%

-20.3 pt

 

Total Cargo revenues (€m)

830

-0.6%

-5.2%

2,658

+3.5%

-0.2%

Scheduled cargo revenues (€m)

720

-1.2%

-5.5%

2,318

+2.0%

-1.5%

Unit revenue per ATK (€ cts )

20.36

-14.8%

-18.5%

23.52

-13.4%

-16.4%

Compared to the third quarter of 2021, cargo capacity increased by 15.9% in Available Ton Kilometers, mainly due to the increase in worldwide belly capacity. Despite this increased belly capacity the overall traffic decreased by 13.5% and resulted in a drop in load factor of almost 16 points. Yields, however, remained at a consistently high level (+14% vs. 2021), leading to a third quarter total revenue performance close to last year's level.

Compared to the pre-COVID year 2019, cargo capacity in the Third quarter was still 7% below. However, due to exceptional yield performance, total revenues in the Third quarter of 2022 were 61% higher compared to 2019.

Transavia: Significant increase in traffic resulted in a positive operating result

 

Third quarter

Nine Months

Transavia

2022

Change

2022

Change

Passengers (thousands)

6,022

+41.8%

13,850

+139.9%

Capacity (ASK m)

12,029

+28.1%

27,953

+104.9%

Traffic (RPK m)

10,697

+45.4%

23,851

+141.4%

Load factor

88.9%

+10.6 pt

85.3%

+12.9 pt

Total passenger revenues (€m)

855

+63.7%

1,705

+148.9%

Unit revenue per ASK (€ cts)

7.38

+32.0%

6.26

+24.1%

Unit cost per ASK (€ cts)

6.36

+42.3%

6.22

+5.9%

Operating result (€m)

123

+18

13

+126

In the Third quarter of 2022, the demand recovery in leisure traffic in Europe and North Africa continued. Compared to last year, the capacity in the third quarter increased by 28.1%, traffic increased by 45.4%, and the number of passengers increased by 41.8%.

The operating result stood at 123 million euros and improved by 18 million euros compared to the third quarter of 2021.

Compared to the same quarter in 2019, the third quarter of 2022 showed activity levels at index 110 and a load factor slightly below 2019 levels. The average unit revenue per ASK increased by 18% compared to 2019, mainly driven by a strong yield increase of 23%. The average unit cost per ASK increased by 36% versus 2019, mainly driven by the high fuelprice and high disruption cost.

The fleet of Transavia reached 100 aircraft in the third quarter and supported to capture the strong demand of leisure traffic in Europe.

Maintenance business: Solid performance continued in the third quarter

 

Third quarter

Nine Months

Maintenance

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Total revenues (€m)

826

+17.4%

 

2,568

+28.1%

 

Third-party revenues (€m)

342

+38.6%

+32.2%

984

+29.4%

+30.8%

Operating result (€m)

46

+17

+19

147

+128

+136

Operating margin (%)

5.6%

+1.5 pt

+1.8 pt

5.7%

+4.8 pt

+5.2 pt

The third quarter operating result stood at 46 million euros, which represents an increase of 19 million euros at constant currency compared to the third quarter 2021 and is due to a higher activity and an operational improvement.

Total revenues increased by 17.4% in the third quarter while third party revenues increased by 38.6%, showing a strong recovery.
The operating margin stood at 5.6%, which is 1.5 points higher than the operating results in the third quarter 2021. The nine months year margin amounts to 5.7%, which is above the level of the pre-covid period but still included States supports.

Adjusted operating free cash flow positive in Q3 reducing the net debt slightly below €6bn

 

Third quarter

Nine Months

In € million

2022

Change

2022

Change

Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)

1,527

+856

2,437

+2,928

Cash out related to Voluntary Departure Plans (€m)

-50

+43

-175

+43

Change in Working Capital Requirement (WCR) (€m)

-587

-828

2,248

+887

Net cash flow from operating activities (€m)

890

71

4,510

3,858

Net investments* (€m)

-389

-69

-1,404

-550

Operating free cash flow (€m)

501

+2

3,106

3,308

Repayment of lease debt

-211

+10

-653

+1

Adjusted operating free cash flow**

290

+12

2,453

+3,309

* 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 flowis operating free cash flow after deducting the repayment of lease debt.

The Group generated an adjusted operating free cash flow in the third quarter 2022 of 290 million euros, which is slightly higher than last year. This is the sixth quarter in a row that the adjusted operating free cash flow is positive.

In € million

30 Sep 2022

31 Dec 2021

Net debt

5,965

8,216

EBITDA trailing 12 months

3,657

745

Net debt/EBITDA trailing 12 months

1.6 x

11.0 x

Both airlines operating margin above 10%

 

Third quarter

Nine Months

 

2022

Change

2022

Change

Air France Group Operating result (€m)

570

+616

340

+1,795

Operating margin (%)

11.4%

+13.0 pt

2.9%

+28.0 pt

KLM Group Operating result (€m)

443

+274

708

+1,062

Operating margin (%)

13.7%

+4.8 pt

8.9%

+17.7 pt

We can see significant improvement in the Operating result of both airlines with the operating margin of Air France being above its 2019 level.

******

The results presentation is available at www.airfranceklm.com on October 28, 2022 from 7:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on October 28, 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 8210
UK: Local +44 (0)330 165 4027
US: Local +1 323-794-2551

Confirmation code: 6069631

Investor Relations

 

Press

Frederic Kahane

Michiel Klinkers

 

 

 

+33 1 41 56 56 00

frkahane@airfranceklm.com

Michiel.klinkers@airfranceklm.com

 

Income Statement

 

Third quarter

Nine Months

€m

2022

2021*

Change

2022

2021*

Change

Revenues from ordinary activities

8,112

4,567

+78 %

19,264

9,477

+103 %

Aircraft fuel

-2,325

-828

+181 %

-5,184

-1,811

+186 %

Chartering costs

-92

-85

+8 %

-285

-232

+23 %

Landing fees and air route charges

-488

-374

+30 %

-1,271

-835

+52 %

Catering

-206

-124

+66 %

-525

-250

+110 %

Handling charges and other operating costs

-468

-307

+52 %

-1,189

-710

+67 %

Aircraft maintenance costs

-524

-389

+35 %

-1,643

-1,181

+39 %

Commercial and distribution costs

-257

-124

+107 %

-641

-255

+151 %

Other external expenses

-375

-292

+28 %

-1,077

-839

+28 %

Salaries and related costs

-1,897

-1,408

+35 %

-5,239

-3,813

+37 %

Taxes other than income taxes

-38

-30

+27 %

-118

-100

+18 %

Other income and expenses

235

188

+25 %

737

467

+58 %

EBITDA

1,677

794

+111 %

2,829

-82

nm

Amortization, depreciation and provisions

-653

-664

-2%

-1,769

-1,722

+3 %

Income from current operations

1,024

130

+688 %

1,060

-1,804

nm

Sales of aircraft equipment

6

-6

nm

44

-20

nm

Other non-current income and expenses

-30

-54

-44%

-44

-906

-95%

Income from operating activities

1,000

70

+1329 %

1,060

-2,730

nm

Cost of financial debt

-139

-144

-3%

-416

-483

-14%

Income from cash and cash equivalent

9

-1

nm

9

2

+350 %

Net cost of financial debt

-130

-145

-10%

-407

-481

-15%

Other financial income and expenses

-335

-114

+194 %

-621

-199

+212 %

Income before tax

535

-189

nm

32

-3,410

nm

Income taxes

-71

-6

+1083 %

208

256

-19%

Net income of consolidated companies

464

-195

nm

240

-3,154

nm

Share of profits (losses) of associates

2

3

-33%

-13

nm

Net income for the period

466

-192

nm

240

-3,167

nm

Non-controlling interests

6

1

+500 %

8

-3

nm

Net income for the period – Group part

460

-193

nm

232

-3,164

nm

* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)

Consolidated Balance Sheet

Assets

30 Sep 2022

31 Dec 2021

€m

Goodwill

225

222

Intangible assets

1,201

1,235

Flight equipment

10,298

10,466

Other property, plant and equipment

1,349

1,402

Right-of-use assets

5,536

5,148

Investments in equity associates

111

109

Other non-current financial assets

1,126

951

Non-current derivatives financial assets

525

143

Deferred tax assets

527

278

Total non-current assets

20,898

19,954

Assets held for sale

78

74

Other current financial assets

832

484

Current derivatives financial assets

676

469

Inventories

693

567

Trade receivables

2,133

1,511

Other current assets

989

966

Cash and cash equivalents

8,264

6,658

Total current assets

13,665

10,729

Total assets

34,563

30,683


Liabilities and equity

30 Sep 2022

31 Dec 2021

In million euros

Issued capital

2,571

643

Additional paid-in capital

5,217

4,949

Treasury shares

-25

-25

Perpetual bonds

912

3,151

Reserves and retained earnings

-11,988

-12,542

Equity attributable to equity holders of Air France-KLM

-3,313

-3,824

Non-controlling interests

516

8

Total Equity

-2,797

-3,816

Pension provisions

1,381

1,939

Non-current return obligation liability and other provisions

4,715

4,055

Non-current financial liabilities

10,695

11,274

Non-current lease debt

3,554

2,924

Non-current derivatives financial liabilities

3

25

Deferred tax liabilities

1

1

Other non-current liabilities

2,426

2,555

Total non-current liabilities

22,775

22,773

Current return obligation liability and other provisions

677

885

Current financial liabilities

1,074

1,215

Current lease debt

878

825

Current derivatives financial liabilities

128

46

Trade payables

2,714

1,850

Deferred revenue on ticket sales

4,132

2,644

Frequent flyer programs

886

888

Other current liabilities

4,093

3,369

Bank overdrafts

3

4

Total current liabilities

14,585

11,726

Total equity and liabilities

34,563

30,683

Statement of Consolidated Cash Flows from 1st January until 30 September 2022

€m

30 Sep 2022

30 Sep 2021*

Net income

240

-3,167

Amortization, depreciation and operating provisions

1,770

1,722

Financial provisions

105

89

Loss (gain) on disposals of tangible and intangible assets

-45

18

Loss (gain) on disposals of subsidiaries and associates

-

-25

Derivatives – non monetary result

-28

-33

Unrealized foreign exchange gains and losses, net

523

172

Share of (profits) losses of associates

-

13

Deferred taxes

-234

-262

Impairment

19

37

Other non-monetary items

-88

727

Financial Capacity

2,262

-709

(Increase) / decrease in inventories

-119

-47

(Increase) / decrease in trade receivables

-431

-365

Increase / (decrease) in trade payables

786

415

Increase / (decrease) in advanced ticket sales

1,489

142

Change in other receivables and payables

523

1,216

Change in working capital requirement

2,248

1,361

Net cash flow from operating activities

4,510

652

Acquisition of subsidiaries, of shares in non-controlled entities

-1

-2

Purchase of property, plant and equipment and intangible assets

-2,082

-1,543

Proceeds on disposal of subsidiaries, of shares in non-controlled entities

-

71

Proceeds on disposal of property, plant and equipment and intangible assets

678

689

Dividends received

1

2

Decrease (increase) in net investments, more than 3 months

-240

37

Net cash flow used in investing activities

-1,644

-746

Increase of equity

1,551

1,026

Capital increase paid by non controlling interests

3

-

Perpetual

-983

-

Coupons on perpetual

-238

-

Issuance of debt

769

1,546

Repayment on debt

-1,600

-1,323

Payments on lease debt

-653

-654

New loans

-177

-35

Repayment on loans

16

93

Net cash flow from financing activities

-1,312

653

Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold)

53

9

Change in cash and cash equivalents and bank overdrafts

1,607

568

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

8,261

6,990

* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Return on capital employed (ROCE)

In million euros

30
Sep 2022

30
Jun 2022

31 Mar 2022

31 Dec 2021

30* Sep 2021

30* Jun 2021

31* Mar 2021

31* Dec 2020

Goodwill and intangible assets

1,425

1,437

1,473

1,457

1,456

1,464

1,479

1,445

Flight equipment

10,298

10,521

10,537

10,466

10,478

10,645

10,800

11,031

Other property, plant and equipment

1,349

1,358

1,378

1,402

1,418

1,453

1,476

1,548

Right of use assets

5,536

5,439

5,205

5,148

5,061

5,033

4,795

4,678

Investments in equity associates

111

108

107

109

172

166

223

230

Financial assets excluding marketable securities and financial deposits

164

162

158

157

147

147

146

146

Provisions, excluding pension, cargo litigation and restructuring

-4,792

-4,473

-4,240

-4,180

-4,180

-4,033

-4,083

-3,923

WCR, excluding market value of derivatives

-10,434

-11,156

-9,589

-8,262

-7,995

-7,745

-6,410

-6,505

Capital employed

3,657

3,396

5,029

6,297

6,557

7,130

8,426

8,650

Average capital employed (A)

4,595

7,691

Adjusted results from current operations

1,238

-2,941

- Share of profits (losses) of associates

-13

-19

- Normative income tax

-317

846

Adjusted result from current operations after tax (B)

908

-2,114

ROCE, trailing 12 months (B/A)

19.8%

-27.5%

* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)

Net debt

 

Balance sheet at

€m

30 Sep 2022

31 Dec 2021

Current and non-current financial liabilities

11,769

12,489

Current and non-current lease debt

4,432

3,749

Accrued interest

-128

-128

Deposits related to financial liabilities

-101

-99

Deposits related to lease debt

-107

-85

Derivatives impact on debt

-101

-14

Gross financial debt (A)

15,764

15,912

Cash and cash equivalents

8,264

6,658

Marketable securities

204

189

Cash secured

552

324

Triple A bonds

782

529

Bank overdrafts

-3

-4

Net cash (B)

9,799

7,696

Net debt (A) – (B)

5,965

8,216

Adjusted operating free cash flow

 

Third quarter

Nine Months

€m

2022

2021

2022

2021

Net cash flow from operating activities

890

819

4,510

652

Investment in property, plant, equipment and intangible assets

-591

-444

-2,082

-1,543

Proceeds on disposal of property, plant, equipment and intangible assets

202

124

678

689

Operating free cash flow

501

499

3,106

-202

Payments on lease debt

-211

-221

-653

-654

Adjusted operating free cash flow

290

278

2,453

-856

Bridge from EBITDA to Financial capacity



 

Third quarter

Nine Months

 

2022

2021*

2022

2021*

EBITDA

1,677

794

2,829

(82)

Provisions (CO2 and other)

31

12

15

-16

Correction of spare parts inventory

1

-

4

4

Addition to pension provisions

32

32

97

168

Reversal to pension provisions (cash-out)

-18

-17

-50

-100

Sales of tangible and intangible assets (excluding aeronauticals)

-4

-

27

31

Income from operation activities - cash impact

1,719

821

2,922

5

Restructuring costs

-50

-93

-175

-218

Other non-current income and expenses

-5

-3

-7

-66

Cost of financial debt

-146

-137

-429

-440

Financial income

5

-4

-3

-11

Realized foreign exchanges gain/loss

-14

1

-11

49

Termination of trading hedges - cash

-

-

-

-8

Settlements of forwards derivates - cash

-

-1

-

-3

Current income tax

-22

-4

-26

-6

Other financial charges & expenses - cash

-11

-

-11

-8

Other elements

1

-2

2

-3

Financial capacity

1,477

578

2,262

-709

* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)

Unit cost: net cost per ASK

 

Third quarter

Nine Months

 

2022

2021*

2022

2021*

Revenues (in €m)

8,112

4,567

19,264

9,477

Income/(loss) from current operations (in €m) -/-

-1,024

-130

-1,060

1,804

Total operating expense (in €m)

7,088

4,437

18,204

11,281

Passenger network business – other revenues (in €m)

-103

-90

-311

-221

Cargo network business – other revenues (in €m)

-109

-106

-340

-296

Third-party revenues in the maintenance business (in €m)

-342

-247

-984

-760

Transavia - other revenues (in €m)

33

3

45

3

Third-party revenues of other businesses (in €m)

-8

-8

-21

-20

Net cost (in €m)

6,559

3,990

16,593

9,987

Capacity produced, reported in ASK*

79,937

61,925

210,129

136,179

Net cost per ASK (in € cents per ASK)

8.21

6.44

7.90

7.33

Gross change

 

27.3%

 

7.7%

Currency effect on net costs (in €m)

 

-142

 

-260

Change at constant currency

 

23.0%

 

4.9%

Fuel price effect (in €m)

 

858

 

1,464

Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)

8.21

8.06

7.90

8.60

Change at constant currency and fuel price basis

 

+1.8%

 

-8.2%

* 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

 

Third quarter

Nine Months

 

2022

Change

2022

Change

Revenue (in €m)

5,001

+78.1%

11,744

+102.7%

EBITDA (in €m)

1,007

+629

1,429

+1,846

Operating result (in €m)

570

+616

340

+1,795

Operating margin (%)

11.4%

+13.0 pt

2.9%

+28.0 pt

Operating cash flow before WCR and restructuring cash out (in €m)

890

+580

1,144

+1,854

Operating cash flow (before WCR and restructuring) margin

17.8%

+6.8 pt

9.7%

+22.0 pt

KLM Group

 

Third quarter

Nine Months

 

2022

Change

2022

Change

Revenue (in €m)

3,236

+71.2%

7,921

+96.7%

EBITDA (in €m)

688

+280

1,417

+1,087

Operating result (in €m)

443

+274

708

+1,062

Operating margin (%)

13.7%

+4.8 pt

8.9%

+17.7 pt

Operating cash flow before WCR and restructuring cash out (in €m)

654

+288

1,321

+1,125

Operating cash flow (before WCR and restructuring) margin

20.2%

+0.9 pt

16.7%

+11.8 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 30 September 2022

Aircraft type

AF
(incl. HOP)

KL
(incl. KLC & MP)

Transavia

Owned

Finance lease

Operating lease

Total

In operation

Change / 31/12/21

B777-300

43

16

 

17

18

24

59

59

 

B777-200

18

15

 

26

 

7

33

33

-3

B787-9

10

13

 

4

7

12

23

23

 

B787-10

 

6

 

2

4

 

6

6

1

A380-800

6

 

 

3

1

2

6

 

 

A350-900

19

 

 

3

7

9

19

19

7

A330-300

 

5

 

 

 

5

5

5

1

A330-200

15

6

 

11

 

10

21

21

 

Total Long-Haul

111

61

0

66

37

69

172

166

6

B737-900

 

5

 

5

 

 

5

5

 

B737-800

 

31

96

34

8

85

127

127

11

B737-700

 

10

4

7

 

7

14

14

 

A321

19

 

 

11

 

8

19

18

 

A320

39

 

 

3

4

32

39

39

-3

A319

24

 

 

12

 

12

24

22

-6

A318

11

 

 

6

 

5

11

11

-1

A220-300

12

 

 

8

 

4

12

12

6

Total Medium-Haul

105

46

100

86

12

153

251

248

6

Canadair Jet 1000

7

 

 

7

 

 

7

4

-7

Canadair Jet 700

 

 

 

 

 

 

 

 

 

Embraer 195 E2

 

13

 

 

 

13

13

13

6

Embraer 190

19

30

 

17

4

28

49

49

2

Embraer 175

 

17

 

3

14

 

17

17

 

Embraer 170

13

 

 

10

 

3

13

13

-2

Embraer 145

2

 

 

2

 

 

2

 

 

Total Regional

41

60

0

39

18

44

101

96

-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

259

171

100

195

67

268

530

516

11

THIRD QUARTER 2022 TRAFFIC

Passenger network activity*

 

 

Q3

 

 

Year to date

Total Passenger network*

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

18,980

12,695

49.5%

 

48,478

23,016

110.6%

Revenue pax-kilometers (m RPK)

59,948

34,019

76.2%

 

151,294

63,381

138.7%

Available seat-kilometers (m ASK)

67,908

52,531

29.3%

 

182,176

122,534

48.7%

Load factor (%)

88.3%

64.8%

23.5

 

83.0%

51.7%

31.3

 

 

 

 

 

 

 

 

Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

6,631

3,553

86.6%

 

16,785

6,891

143.6%

Revenue pax-kilometers (m RPK)

48,324

25,123

92.3%

 

122,719

48,287

154.1%

Available seat-kilometers (m ASK)

54,156

40,515

33.7%

 

146,681

100,466

46.0%

Load factor (%)

89.2%

62.0%

27.2

 

83.7%

48.1%

35.6

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Passengers carried (‘000s)

2,705

1,154

134.4%

 

6,235

1,852

236.8%

Revenue pax-kilometers (m RPK)

19,197

8,291

131.6%

 

44,584

13,433

231.9%

Available seat-kilometers (m ASK)

21,217

13,101

61.9%

 

53,508

29,169

83.4%

Load factor (%)

90.5%

63.3%

27.2

 

83.3%

46.1%

37.3

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

Passengers carried (‘000s)

801

365

119.1%

 

2,243

731

206.7%

Revenue pax-kilometers (m RPK)

7,600

3,521

115.9%

 

21,326

7,034

203.2%

Available seat-kilometers (m ASK)

8,265

6,164

34.1%

 

24,066

16,621

44.8%

Load factor (%)

92.0%

57.1%

34.8

 

88.6%

42.3%

46.3

 

 

 

 

 

 

 

 

Asia / Middle East

 

 

 

 

 

 

 

Passengers carried (‘000s)

981

499

96.7%

 

2,474

1,100

124.9%

Revenue pax-kilometers (m RPK)

7,052

3,312

113.0%

 

17,560

7,350

138.9%

Available seat-kilometers (m ASK)

8,243

7,478

10.2%

 

22,853

21,826

4.7%

Load factor (%)

85.5%

44.3%

41.3

 

76.8%

33.7%

43.2

 

 

 

 

 

 

 

 

Africa

 

 

 

 

 

 

 

Passengers carried (‘000s)

1,078

779

38.5%

 

2,830

1,733

63.3%

Revenue pax-kilometers (m RPK)

6,453

4,337

48.8%

 

16,813

9,551

76.0%

Available seat-kilometers (m ASK)

7,389

6,259

18.1%

 

20,525

16,346

25.6%

Load factor (%)

87.3%

69.3%

18.0

 

81.9%

58.4%

23.5

 

 

 

 

 

 

 

 

Caribbean / Indian Ocean

 

 

 

 

 

 

 

Passengers carried (‘000s)

1,067

757

41.0%

 

3,006

1,475

103.7%

Revenue pax-kilometers (m RPK)

8,022

5,663

41.6%

 

22,437

10,918

105.5%

Available seat-kilometers (m ASK)

9,042

7,512

20.4%

 

25,729

16,503

55.9%

Load factor (%)

88.7%

75.4%

13.3

 

87.2%

66.2%

21.0

 

 

 

 

 

 

 

 

Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

12,348

9,141

35.1%

 

31,690

16,124

96.5%

Revenue pax-kilometers (m RPK)

11,624

8,896

30.7%

 

28,574

15,095

89.3%

Available seat-kilometers (m ASK)

13,753

12,016

14.5%

 

35,496

22,068

60.8%

Load factor (%)

84.5%

74.0%

10.5

 

80.5%

68.4%

12.1

* Air France and KLM

Transavia activity

 

 

Q3

 

 

Year to date

Transavia

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

6,022

4,246

41.8%

 

13,850

5,772

139.9%

Revenue pax-kilometers (m RPK)

10,697

7,359

45.4%

 

23,851

9,881

141.4%

Available seat-kilometers (m ASK)

12,029

9,393

28.1%

 

27,953

13,645

104.9%

Load factor (%)

88.9%

78.3%

10.6

 

85.3%

72.4%

12.9

Total group passenger activity**

 

 

Q3

 

 

Year to date

Total group**

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

25,002

16,940

47.6%

 

62,328

28,788

116.5%

Revenue pax-kilometers (m RPK)

70,645

41,378

70.7%

 

175,145

73,262

139.1%

Available seat-kilometers (m ASK)

79,937

61,924

29.1%

 

210,129

136,178

54.3%

Load factor (%)

88.4%

66.8%

21.6

 

83.4%

53.8%

29.6

** Air France, KLM and Transavia

Cargo activity

 

 

Q3

 

 

Year to date

Total Group

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

1,635

1,895

(13.7%)

 

5,132

6,055

(15.2%)

Available tonne-km (m ATK)

3,538

3,051

15.9%

 

9,853

8,362

17.8%

Load factor (%)

46.2%

62.1%

(15.9)

 

52.1%

72.4%

(20.3)


Air France activity

 

 

Q3

 

 

Year to date

Total Passenger network activity

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

11,528

7,520

53.3%

 

28,977

14,172

104.5%

Revenue pax-kilometers (m RPK)

36,159

20,304

78.1%

 

90,241

38,027

137.3%

Available seat-kilometers (m ASK)

40,992

29,189

40.4%

 

108,483

63,241

71.5%

Load factor (%)

88.2%

69.6%

18.6

 

83.2%

60.1%

23.1


Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

4,123

2,261

82.4%

 

10,454

4,402

137.5%

Revenue pax-kilometers (m RPK)

29,056

15,255

90.5%

 

73,573

29,265

151.4%

Available seat-kilometers (m ASK)

32,657

22,390

45.9%

 

87,849

50,642

73.5%

Load factor (%)

89.0%

68.1%

20.8

 

83.8%

57.8%

26.0


Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

7,405

5,260

40.8%

 

18,521

9,770

89.6%

Revenue pax-kilometers (m RPK)

7,103

5,050

40.7%

 

16,667

8,763

90.2%

Available seat-kilometers (m ASK)

8,335

6,799

22.6%

 

20,635

12,599

63.8%

Load factor (%)

85.2%

74.3%

10.9

 

80.8%

69.6%

11.2


 

 

Q3

 

 

Year to date

Cargo activity

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

834

837

(0.3%)

 

2,631

2,648

(0.7%)

Available tonne-km (m ATK)

2,025

1,592

27.2%

 

5,544

4,194

32.2%

Load factor (%)

41.2%

52.6%

(11.4)

 

47.5%

63.2%

(15.7)

KLM activity

 

 

Q3

 

 

Year to date

Total Passenger network activity

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

7,452

5,174

44.0%

 

19,501

8,843

120.5%

Revenue pax-kilometers (m RPK)

23,789

13,715

73.5%

 

61,053

25,354

140.8%

Available seat-kilometers (m ASK)

26,915

23,343

15.3%

 

73,692

59,294

24.3%

Load factor (%)

88.4%

58.8%

29.6

 

82.8%

42.8%

40.1


Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

2,508

1,293

94.0%

 

6,331

2,489

154.4%

Revenue pax-kilometers (m RPK)

19,268

9,870

95.2%

 

49,146

19,023

158.4%

Available seat-kilometers (m ASK)

21,498

18,125

18.6%

 

58,831

49,825

18.1%

Load factor (%)

89.6%

54.5%

35.2

 

83.5%

38.2%

45.4


Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

4,944

3,881

27.4%

 

13,169

6,354

107.3%

Revenue pax-kilometers (m RPK)

4,522

3,846

17.6%

 

11,907

6,332

88.0%

Available seat-kilometers (m ASK)

5,418

5,218

3.8%

 

14,861

9,469

56.9%

Load factor (%)

83.5%

73.7%

9.7

 

80.1%

66.9%

13.3


 

 

Q3

 

 

Year to date

Cargo activity

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

801

1,058

(24.3%)

 

2,502

3,407

(26.6%)

Available tonne-km (m ATK)

1,512

1,459

3.7%

 

4,309

4,169

3.4%

Load factor (%)

53.0%

72.5%

(19.5)

 

58.1%

81.7%

(23.7)


1 based on fuel forward curve at 21 October 2022 and under currently foreseen circumstances
2 Change versus 31 Dec 2021

Attachment