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Second QUARTER 2022
July 29, 2022
Second QUARTER 2022 |
Second quarter:
Positive operating result at 386 million euros
Net income at 324 million euros, showing a 1.8 billion euros improvement compared to the same quarter last year
Positive adjusted operating free cash flow at 1.5 billion euros thanks to positive EBITDA and strong ticket sales. It improved by 1.3 billion euros compared to the same quarter in 2021
The Group has already successfully achieved 2.8 billion euros of equity measures of the up to 4 billion announced last February
Air France-KLM/Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon). KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million euros
Net debt at 6.0 billion euros, down by 2.2 billion euros compared to end of 2021 thanks to a positive adjusted operating free cash flow and the rights issue completed in June 2022
Mr. Benjamin Smith, Group CEO, said:
“The strong recovery we see this summer is putting the entire aviation industry to the test. While Air France-KLM had prepared for close to pre-pandemic demand levels, our airlines are not immune to the major operational challenges taking place around the world. Customer satisfaction is at the top of our priorities and we know we have not fully been able to deliver the quality of service that has come to be expected from us. I would like to thank our customers for their trust and patience. I would also like to express my gratitude towards our employees for their unwavering commitment, even in difficult situations. It is thanks to their dedication and sense of collective responsibility that we are able to post better-than-expected revenues and results this quarter. Going forward we will continue to implement our strategy in order to further transform our organization. We aim to increase our resilience to the changes of our environment while continuing to accelerate our efforts to make our Group and aviation as a whole more sustainable.”
Outlook:
Context:
Air France and KLM are among the most active airlines to accommodate the travel recovery, with a second quarter capacity for Network passenger activity at an index of 82%. Despite the summer growth anticipation efforts since January, operational difficulties arose in Europe and the United States, mainly due to labour shortages at airports.
Air France and KLM are doing their utmost to mitigate these challenges and has prioritised safeguarding the trust of our customers. For this quarter, it resulted into 70 million euros additional compensation costs.
Capacity
In this recovery context, the Group expects the capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at an index of:
80% to 85% in the Third quarter of 2022
85% to 90% in the Fourth quarter of 2022
Circa 80% for the Full Year 2022
All indices compared to the respective period of 2019.
The capacity for Transavia in Available Seat Kilometers is expected at an index above 100 for the full year and in the third and fourth quarter 2022 compared to 2019.
Yield
The yield environment should remain high for the rest of 2022 with a strong summer demand resulting in yield levels above 2019.
Expected operating result
Significantly positive in the third quarter
Positive in 2022, for the first time since 2019
Cash
As of June 30 2022, the Group has a strong 11.9 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% IT & Ground related.
Air France-KLM made major steps to pave the financial trajectory
In February, Air France-KLM announced plans for a set of equity strengthening measures up to 4 billion euros.
Later in June, the Group successfully completed a 2.3 billion euros rights issue, with CMA-CGM becoming a new strategic shareholder and a reference commercial partner in the cargo activity. Air France-KLM / Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon), aiming to redeem at least 75% as soon as possible.
In the meantime, KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million euros. 2.4 billion euros RCF and State Loan is still available, and KLM expects to strengthen its balance sheet with positive net results and further equity measures are being contemplated.
Air France-KLM and Apollo have closed on the 28th July an investment of 500 million euros by Apollo Funds to finance an ad hoc affiliate of Air France owning a pool of spare engines, as per the agreement signed on July 13th. In alignment with the requirement of article 77 bis of the European Commission’s “Temporary Framework for State aid recapitalization measures”, proceeds from the investment will be used to further redeem outstanding French State perpetual bonds issued in late April 2021.
Later in 2022-2023, the Group will contemplate possible hybrid bond issuances up to 1.2 billion euros subject to market conditions.
The restoration of negative equity will be done through net profit generation and quasi/equity projects.
Air France-KLM Group: Second quarter operating margin at 2019 level despite the steep increase of fuel cost
| Second quarter | Half year | |||||
| 2022 | Change | Change | 2022 | Change | Change | |
Passengers (thousands) | 22,803 | +224.5% |
| 37,326 | +215.0% |
| |
Capacity (ASK m) | 72,127 | +81.9% |
| 130,192 | +75.3% |
| |
Traffic (RPK m) | 61,365 | +243.4% |
| 104,499 | +227.7% |
| |
Passenger unit revenue per ASK (€ cts) | 7.41 | +93.6% | +89.1% | 6.51 | +91.8% | +87.9% | |
Group unit revenue per ASK (€ cts) | 8.52 | +46.1% | +42.1% | 7.73 | +41.4% | +38.0% | |
Group unit cost per ASK (€ cts) at constant fuel | 7.98 | +3.2% | -12.7% | 7.71 | -4.6% | -15.6% | |
Revenues (€m) | 6,707 | +143.9% | +138.7% | 11,152 | +127.1% | +123.8% | |
EBITDA (€m) | 931 | 1,180 | 1,186 | 1,152 | 2,029 | 2,050 | |
Operating result (€m) | 386 | 1,139 | 1,145 | 36 | 1,970 | 1,989 | |
Operating margin (%) | 5.8% | +33.1 pt | +32.8 pt | 0.3% | +39.7 pt | +39.5 pt | |
Net income - Group part (€m) | 324 | +1,813 |
| -228 | +2,744 |
| |
Adj. operating free cash flow (€m) | 1,532 | +1,322 |
| 2,163 | +3,297 |
| |
Net debt at end of period (€m)1 |
|
|
| 6,036 | -2,180 |
| |
In the Second quarter 2022, the Air France-KLM Group posted a positive operating result of 386 million euros, up by 1,145 million euros at a constant currency compared to last year, and was driven by an increase of capacity. In parallel, the increase of load factor and yield generated an increase of the unit revenue.
Net income amounted to 324 million euros in the Second quarter 2022, an increase of 1.8 billion euros compared to last year. The recognition of tax assets at KLM group for an amount of around 300 million euros supported the positive net income generation.
In a challenging cost environment, transformation programs contain the unit cost up 2.4% with 15% capacity below 2019.
The unit cost is up 2.4% at a constant fuel price and constant currency versus the Second quarter 2019, with a capacity down by 15%. The ongoing transformation programs enable Air France-KLM to limit the impact of increasing costs such as airport and ATC charges, and the KLM Collective Labour Agreement (CLA) delayed implementation.
Compared to June 2019, the number of Full Time Equivalents (FTE’s) of Air France excluding Transavia reduced by 16% and by 13% for KLM.
Staff costs decreased in the Second quarter by 11% compared to the same quarter in 2019 thanks to FTE reduction and the French government support on wages. Corrected for government support on wages, staff costs decreased by 9%.
Business review
Network: Significant improvement in operating result
Network | Second quarter | Half year | ||||
2022 | Change | Change | 2022 | Change | Change | |
Total revenues (€m) | 5,753 | +143.5% | +137.4% | 9,647 | +128.6% | +123.6% |
Scheduled revenues (€m) | 5,532 | +153.0% | +145.7% | 9,207 | +136.1% | +130.2% |
Operating result (€m) | 352 | +1,006 | +1,013 | 43 | +1,758 | +1,773 |
Second quarter 2022 revenues increased by 137.4% at constant currency to 5,753 million euros. The operating result amounted to 352 million euros, a 1,013 million euros increase at constant currency compared to last year.
Passenger network: Double-digit yield increase on most regions and on both
economy and premium cabins
| Second quarter | Half year | ||||
Passenger network | 2022 | Change | Change | 2022 | Change | Change |
Passengers (thousands) | 17,556 | +199.9% |
| 29,497 | +185.8% |
|
Capacity (ASK m) | 61,697 | +69.4% |
| 114,268 | +63.2% |
|
Traffic (RPK m) | 52,479 | +229.4% |
| 91,346 | +211.1% |
|
Load factor | 85.1% | +41.3 pt |
| 79.9% | +38.0 pt |
|
Total passenger revenues (€m) | 4,835 | +229.3% | +223.4% | 7,818 | +214.3% | +209.6% |
Scheduled passenger revenues (€m) | 4,732 | +239.9% | +231.3% | 7,610 | +223.0% | +216.0% |
Unit revenue per ASK (€ cts) | 7.67 | +100.7% | +95.6% | 6.66 | +97.9% | +93.6% |
Second quarter 2022, capacity in Available Seat Kilometers (ASK) was 69.4% higher than last year and at 82% of 2019 Second quarter level which was in the middle of the Group’s guidance provided during the First quarter 2022 results presentation.
In response to the rise in fuel prices and other external costs, the Group proceeded to different fare increases during the first half of the year across all 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. Additionally, the spike in travel 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 second quarter.
The Second quarter result is driven by a strong performance of the entire network:
North Atlantic: Strong improvement since mid-January driven by the strong traffic recovery, with strong yield due to fare increases and a positive cabin mix. The second quarter showed new bookings outpacing 2019 levels.
Capacity discipline on South America routes combined with a very resilient demand led to a strong yield. Corporate traffic ramped up quickly in the same time.
Asia: The strong yield performance is due to limited capacity and the group continues to observe important differences between the regions. South East Asia and India showed positive dynamic in yield and traffic.
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.
Middle-East: The second quarter performance stayed strong thanks to Dubai, especially on premium cabins and an increased traffic on some routes.
Medium-haul: Strong booking dynamic since March. KLM is impacted by operational challenges and 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.
Short-haul: The network was able to absorb capacity recovery month over month thanks to business motive dynamism. Yield is above 2019 helped by steering yield initiatives.
During the Second quarter, Air France added three Airbus 350-900 and two Airbus A220-300. One B777-200, one Airbus 320, three Airbus 319, two Embraer 170 and five Canadair Jet 1000 were phased out. KLM phased in three 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 traffic impact on Asia trade lanes
| Second quarter | Half year | ||||
Cargo business | 2022 | Change | Change | 2022 | Change | Change |
Tons (thousands) | 236 | -13.4% |
| 472 | -12.7% |
|
Capacity (ATK m) | 3,341 | +27.4% |
| 6,315 | +18.9% |
|
Traffic (RTK m) | 1,732 | -17.2% |
| 3,497 | -16.1% |
|
Load factor | 51.8% | -27.9 pt |
| 55.4% | -23.1 pt |
|
Total Cargo revenues (€m) | 918 | +2.6% | -1.1% | 1,828 | +5.5% | +2.2% |
Scheduled cargo revenues (€m) | 801 | +0.7% | -2.8% | 1,597 | +3.5% | +0.4% |
Unit revenue per ATK (€ cts ) | 23.96 | -20.9% | -23.7% | 25.29 | -13.0% | -15.5% |
Compared to the Second quarter 2021, cargo capacity strongly increased by 27.4% in Available Ton Kilometers, mainly due to the increase in worldwide belly capacity, except for Asia. This limited belly capacity to Asia affected the overall traffic which resulted in a traffic decrease of 17.2% and contributed to an overall decrease in load factor by 27.9 points. Yields, however, remain at a consistently high level (+17.4% vs. 2021), leading to a total Second quarter revenue performance at last year's level.
When compared to the pre-COVID year 2019, cargo capacity in the Second quarter was still 8% below 2019. However, due to exceptional yield performance – driven by high demand – total revenues in the Second quarter of 2022 were 76% higher than 2019.
In May, Air France-KLM announced its entry into a strategic partnership with CMA-CGM Air Cargo (CCAC). The partnership agreement is currently being worked out and expected to be finalized before the end of 2022.
In June, Air France-KLM Cargo won the Air Cargo Industry Achievement Award for their pioneering work in the development and distribution of sustainable aviation fuel and the fast expansion of its leading SAF program.
Transavia: Capacity above pre-crisis level with a load factor of 85%
| Second quarter | Half year | ||
Transavia | 2022 | Change | 2022 | Change |
Passengers (thousands) | 5,247 | +346.8% | 7,828 | +412.8% |
Capacity (ASK m) | 10,430 | +221.9% | 15,924 | +274.6% |
Traffic (RPK m) | 8,886 | +358.2% | 13,154 | +421.6% |
Load factor | 85.2% | +25.3 pt | 82.6% | +23.3 pt |
Total passenger revenues (€m) | 601 | +378.0% | 850 | +422.2% |
Unit revenue per ASK (€ cts) | 5.86 | +51.0% | 5.41 | +41.2% |
Unit cost per ASK (€ cts) | 6.04 | -12.5% | 6.11 | -31.9% |
Operating result (€m) | -18 | +80 | -110 | +108 |
In the Second quarter of 2022, the demand recovery in leisure traffic in Europe and North Africa continued. Compared to last year, the capacity in the Second quarter increased by 221.9%, traffic increased by 358.2%, and the number of passengers increased by 346.8%. Last year, Second quarter was heavily impacted by travel restrictions in Europe and North Africa.
The Operating result was slightly negative at -18 million euros, although improved by 80 million euros compared to the Second quarter of 2021.
Capacity in the Second quarter was above the level of the Second quarter of 2019 and unit revenue even above the Second 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
| Second quarter | Half year | ||||
Maintenance | 2022 | Change | Change | 2022 | Change | Change |
Total revenues (€m) | 911 | +34.1% |
| 1,742 | +33.9% |
|
Third-party revenues (€m) | 345 | +35.1% | +35.3% | 642 | +25.0% | +30.0% |
Operating result (€m) | 57 | 60 | 61 | 101 | 111 | 117 |
Operating margin (%) | 6.3% | +6.7 pt | +6.8 pt | 5.8% | +6.6 pt | +7.1 pt |
The Second quarter operating result stood at 57 million euros, an increase of 61 million euros at constant currency versus the Second quarter 2021 thanks to a higher activity and an operational improvement.
Total revenues increased by 34.1% in the Second quarter while third party revenues increased by 35.1%, showing a strong recovery. The increase in internal revenues is consistent with the activity increase of the Air France-KLM airlines compared to the Second quarter 2021.
The operating margin stood at 6.3%, which is 6.7 points higher than the operating results in the Second quarter 2021. The half year margin amounts to 5.8%, which is at the level of the pre-covid period when excluding the states support.
During the second quarter, Air France-KLM and Apollo Global Management announced the signing of a definitive agreement for Apollo managed funds and entities to make a 500 million euros investment in to an ad hoc operating affiliate of Air France that will own a pool of spare engines dedicated to the airline’s Engineering and Maintenance activities.
Second quarter: Positive EBITDA and strong ticket sales reinforces the adjusted operating free cash flow and supports net debt reduction by 2.2 billion euros
| Second quarter | Half year | ||
In € million | 2022 | Change | 2022 | Change |
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m) | 785 | +1,237 | 841 | +2,083 |
Cash out related to Voluntary Departure Plans (€m) | -68 | +12 | -125 | +0 |
Change in Working Capital Requirement (WCR) (€m) | 1,510 | +299 | 2,835 | +1,715 |
Net cash flow from operating activities (€m) | 2,239 | 1,525 | 3,620 | 3,787 |
Net investments* (€m) | -482 | -195 | -1,015 | -481 |
Operating free cash flow (€m) | 1,757 | +1,330 | 2,605 | 3,306 |
Repayment of lease debt | -225 | -8 | -442 | -9 |
Adjusted operating free cash flow** | 1,532 | +1,322 | 2,163 | +3,297 |
* 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 Second quarter 2022 of 1,532 million euros, an increase of 1,322 million euros compared to last year, mainly driven by a positive change in working capital of 1,510 million euros. This was the fifth quarter in a row that the adjusted operating free cash flow was positive.
In € million | 30 Jun 2022 | 31 Dec 2021 |
Net debt | 6,036 | 8,216 |
EBITDA trailing 12 months | 2,773 | 745 |
Net debt/EBITDA trailing 12 months | 2.2 x | 11.0 x |
Both airlines able to reach positive operating margin
| Second quarter | Half year | ||
| 2022 | Change | 2022 | Change |
Air France Group Operating result (€m) | 133 | +700 | -230 | +1,179 |
Operating margin (%) | 3.3% | +37.8 pt | -3.4% | +43.8 pt |
KLM Group Operating result (€m) | 262 | +447 | 266 | +787 |
Operating margin (%) | 9.4% | +24.8 pt | 5.7% | +30.1 pt |
Significant improvement in Operating result for both airlines with operating margins close to 2019 levels
******
The external auditors carried out limited review procedures. Their limited review report was issued following the Board meeting.
The results presentation is available at www.airfranceklm.com on July 29, 2022 from 7:15 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on July 29, 2022 at 08.30 am CET.
To connect to the conference call, please dial:
France: Local +33 (0)1 76 77 28 19
Netherlands: Local +31 (0)20 703 8218
UK: Local +44 (0)330 165 4012
US: Local +1 323-701-0160
Confirmation code: 1131773
Investor Relations |
| Press |
Frederic Kahane | Michiel Klinkers |
|
|
| +33 1 41 56 56 00 |
frkahane@airfranceklm.com |
|
Income Statement
| Second quarter | Half year | ||||
€m | 2022 | 2021* | Change | 2022 | 2021* | Change |
Revenues from ordinary activities | 6,707 | 2,750 | +143.9% | 11,152 | 4,910 | +127.1% |
Aircraft fuel | -1,863 | -520 | +258.3% | -2,858 | -982 | +191.0% |
Chartering costs | -93 | -78 | +19.2% | -193 | -147 | +31.3% |
Landing fees and air route charges | -436 | -245 | +78.0% | -784 | -460 | +70.4% |
Catering | -176 | -68 | +158.8% | -319 | -126 | +153.2% |
Handling charges and other operating costs | -401 | -211 | +90.0% | -722 | -402 | +79.6% |
Aircraft maintenance costs | -603 | -447 | +34.9% | -1,118 | -792 | +41.2% |
Commercial and distribution costs | -230 | -72 | +219.4% | -384 | -131 | +193.1% |
Other external expenses | -368 | -254 | +44.9% | -702 | -552 | +27.2% |
Salaries and related costs | -1,820 | -1,238 | +47.0% | -3,343 | -2,406 | +38.9% |
Taxes other than income taxes | -34 | -29 | +17.2% | -80 | -69 | +15.9% |
Other income and expenses | 248 | 163 | +52.1% | 503 | 280 | +79.6% |
EBITDA | 931 | -249 | nm | 1,152 | -877 | nm |
Amortization, depreciation and provisions | -545 | -504 | +8.1% | -1,116 | -1,057 | +5.6% |
Income from current operations | 386 | -753 | nm | 36 | -1,934 | nm |
Sales of aircraft equipment | 39 | -11 | nm | 39 | -14 | nm |
Other non-current income and expenses | -10 | -849 | -98.8% | -15 | -853 | -98% |
Income from operating activities | 415 | -1,613 | nm | 60 | -2,801 | nm |
Cost of financial debt | -136 | -149 | -8.7% | -277 | -339 | -18.3% |
Income from cash and cash equivalent | 1 | 2 | -50.0% | 0 | 3 | -100.0% |
Net cost of financial debt | -135 | -147 | -8.2% | -277 | -336 | -17.6% |
Other financial income and expenses | -238 | 5 | nm | -286 | -85 | +236.5% |
Income before tax | 42 | -1,755 | nm | -503 | -3,222 | -84.4% |
Income taxes | 283 | 272 | +4.0% | 278 | 263 | +5.7% |
Net income of consolidated companies | 325 | -1,483 | nm | -225 | -2,959 | -92.4% |
Share of profits (losses) of associates | 0 | -9 | -100.0% | -1 | -16 | -93.8% |
Net income for the period | 325 | -1,492 | nm | -226 | -2,975 | -92.4% |
Non-controlling interests | 1 | -3 | nm | 2 | -3 | nm |
Net income for the period – Group part | 324 | -1,489 | nm | -228 | -2,972 | -92.3% |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Consolidated Balance Sheet
Assets | 30 Jun 2022 | 31 Dec 2021 |
€m | ||
Goodwill | 223 | 222 |
Intangible assets | 1,213 | 1,235 |
Flight equipment | 10,521 | 10,466 |
Other property, plant and equipment | 1,358 | 1,402 |
Right-of-use assets | 5,439 | 5,148 |
Investments in equity associates | 108 | 109 |
Other non-current financial assets | 1,064 | 951 |
Non-current derivatives financial assets | 304 | 143 |
Deferred tax assets | 494 | 278 |
Total non-current assets | 20,724 | 19,954 |
Assets held for sale | 78 | 74 |
Other current financial assets | 589 | 484 |
Current derivatives financial assets | 954 | 469 |
Inventories | 654 | 567 |
Trade receivables | 2,045 | 1,511 |
Other current assets | 1,133 | 966 |
Cash and cash equivalents | 8,173 | 6,658 |
Total current assets | 13,626 | 10,729 |
Total assets | 34,350 | 30,683 |
Liabilities and equity | 30 Jun 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 | 1,389 | 3,151 |
Reserves and retained earnings | -12,349 | -12,542 |
Equity attributable to equity holders of Air France-KLM | -3,197 | -3,824 |
Non-controlling interests | 10 | 8 |
Total Equity | -3,187 | -3,816 |
Pension provisions | 1,558 | 1,939 |
Non-current return obligation liability and other provisions | 4,272 | 4,055 |
Non-current financial liabilities | 10,568 | 11,274 |
Non-current lease debt | 3,335 | 2,924 |
Non-current derivatives financial liabilities | 1 | 25 |
Deferred tax liabilities | 3 | 1 |
Other non-current liabilities | 2,465 | 2,555 |
Total non-current liabilities | 22,202 | 22,773 |
Current return obligation liability and other provisions | 838 | 885 |
Current financial liabilities | 1,079 | 1,215 |
Current lease debt | 851 | 825 |
Current derivatives financial liabilities | 42 | 46 |
Trade payables | 2,821 | 1,850 |
Deferred revenue on ticket sales | 4,938 | 2,644 |
Frequent flyer programs | 868 | 888 |
Other current liabilities | 3,896 | 3,369 |
Bank overdrafts | 2 | 4 |
Total current liabilities | 15,335 | 11,726 |
Total equity and liabilities | 34,350 | 30,683 |
Statement of Consolidated Cash Flows from 1st January until 30 June 2022
€m | 30 Jun 2022 | 30 Jun 2021* |
Net income | -226 | -2,975 |
Amortization, depreciation and operating provisions | 1,116 | 1,057 |
Financial provisions | 69 | 58 |
Loss (gain) on disposals of tangible and intangible assets | -40 | 14 |
Loss (gain) on disposals of subsidiaries and associates | - | -26 |
Derivatives – non monetary result | -20 | -29 |
Unrealized foreign exchange gains and losses, net | 240 | 86 |
Impairment | 17 | 15 |
Other non-monetary items | -90 | 762 |
Share of (profits) losses of associates | 1 | 16 |
Deferred taxes | -282 | -265 |
Financial Capacity | 785 | -1,287 |
(Increase) / decrease in inventories | -79 | 12 |
(Increase) / decrease in trade receivables | -437 | -268 |
Increase / (decrease) in trade payables | 971 | 138 |
Increase / (decrease) in advanced ticket sales | 2,276 | 489 |
Change in other receivables and payables | 104 | 749 |
Change in working capital requirement | 2,835 | 1,120 |
Net cash flow from operating activities | 3,620 | -167 |
Acquisition of subsidiaries, of shares in non-controlled entities | - | 2 |
Purchase of property, plant and equipment and intangible assets | -1,491 | -1,099 |
Proceeds on disposal of subsidiaries, of shares in non-controlled entities | - | 71 |
Proceeds on disposal of property, plant and equipment and intangible assets | 476 | 565 |
Decrease (increase) in net investments, more than 3 months | 6 | 85 |
Dividends received | 1 | - |
Net cash flow used in investing activities | -1,008 | -376 |
Increase of equity | 1,551 | 1,024 |
Perpetual | -993 | - |
Coupons on perpetual | -229 | - |
Issuance of debt | 552 | 690 |
Repayment on debt | -1,187 | -750 |
Payments on debt on lease with bargain option | -228 | -385 |
Payments on lease debt | -442 | -433 |
New loans | -175 | -37 |
Repayment on loans | 16 | 44 |
Net cash flow from financing activities | -1,135 | 153 |
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold) | 40 | 1 |
Change in cash and cash equivalents and bank overdrafts | 1,517 | -389 |
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 | 8,171 | 6,033 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Return on capital employed (ROCE)
In million euros | 30 | 31 Mar 2022 | 31 Dec 2021 | 30* Sep 2021 | 30* Jun 2021 | 31* Mar 2021 | 31* Dec 2020 | 30* Sep 2020 |
Goodwill and intangible assets | 1,437 | 1,473 | 1,457 | 1,456 | 1,464 | 1,479 | 1,445 | 1,470 |
Flight equipment | 10,521 | 10,537 | 10,466 | 10,478 | 10,645 | 10,800 | 11,031 | 11,009 |
Other property, plant and equipment | 1,358 | 1,378 | 1,402 | 1,418 | 1,453 | 1,476 | 1,548 | 1,535 |
Right of use assets | 5,393 | 5,205 | 5,148 | 5,061 | 5,033 | 4,795 | 4,678 | 4,789 |
Investments in equity associates | 108 | 107 | 109 | 172 | 166 | 223 | 230 | 224 |
Financial assets excluding marketable securities and financial deposits | 162 | 158 | 157 | 147 | 147 | 146 | 146 | 135 |
Provisions, excluding pension, cargo litigation and restructuring | -4,471 | -4,239 | -4,173 | -4,180 | -4,033 | -4,083 | -3,922 | -4,002 |
WCR, excluding market value of derivatives | -11,156 | -9,589 | -8,262 | -7,995 | -7,745 | -6,410 | -6,505 | -6,894 |
Capital employed | 3,352 | 5,030 | 6,304 | 6,557 | 7,130 | 8,426 | 8,651 | 8,266 |
Average capital employed (A) | 5,311 | 8,118 | ||||||
Adjusted results from current operations | 344 | -4,119 | ||||||
- Dividends received | 0 | 0 | ||||||
- Share of profits (losses) of associates | -12 | -45 | ||||||
- Normative income tax | -80 | 1,211 | ||||||
Adjusted result from current operations after tax (B) | 252 | -2,953 | ||||||
ROCE, trailing 12 months (B/A) | 4.7% | -36.4% | ||||||
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Net debt
| Balance sheet at | |
€m | 31 Jun 2022 | 31 Dec 2021 |
Current and non-current financial liabilities | 11,647 | 12,489 |
Current and non-current lease debt | 4,186 | 3,749 |
Accrued interest | -122 | -128 |
Deposits related to financial liabilities | -96 | -99 |
Deposits related to lease debt | -96 | -85 |
Derivatives impact on debt | -60 | -14 |
Gross financial debt (A) | 15,459 | 15,912 |
Cash and cash equivalents | 8,173 | 6,658 |
Marketable securities | 85 | 189 |
Cash secured | 424 | 324 |
Triple A bonds | 743 | 529 |
Bank overdrafts | -2 | -4 |
Net cash (B) | 9,423 | 7,696 |
Net debt (A) – (B) | 6,036 | 8,216 |
Adjusted operating free cash flow
| Second quarter | Half year | ||
€m | 2022 | 2021 | 2022 | 2021 |
Net cash flow from operating activities | 2,239 | 714 | 3,620 | -167 |
Investment in property, plant, equipment and intangible assets | -787 | -632 | -1,491 | -1,099 |
Proceeds on disposal of property, plant, equipment and intangible assets | 305 | 345 | 476 | 565 |
Operating free cash flow | 1,757 | 427 | 2,605 | -701 |
Payments on lease debt | -225 | -217 | -442 | -433 |
Adjusted operating free cash flow | 1,532 | 210 | 2,163 | -1,134 |
Bridge from EBITDA to Financial capacity
| Second quarter | First Half | ||
| 2022 | 2021* | 2022 | 2021* |
EBITDA | 931 | -249 | 1,152 | -877 |
Provisions (CO2 and other) | -27 | -70 | -16 | -28 |
Correction of spare parts inventory | 1 | 2 | 3 | 3 |
Addition to pension provisions | 33 | 60 | 65 | 137 |
Reversal to pension provisions (cash-out) | -19 | -40 | -32 | -83 |
Sales of tangible and intangible assets (excluding aeronauticals) | 31 | 70 | 31 | 31 |
Income from operation activities - cash impact | 950 | -227 | 1,203 | -817 |
Restructuring costs | -68 | -80 | -125 | -125 |
Other non-current income and expenses | - | -63 | -2 | -63 |
Cost of financial debt | -139 | -134 | -283 | -302 |
Financial income | -3 | -3 | -8 | -7 |
Realized foreign exchanges gain/loss | -11 | 20 | 3 | 47 |
Termination of trading hedges - cash | - | -1 | - | -8 |
Settlements of forwards derivates - cash | - | -2 | - | -2 |
Current income tax | - | 1 | -4 | -2 |
Other financial charges & expenses - cash | - | -8 | - | -8 |
Other elements | - | - | 1 | - |
Financial capacity | 729 | -497 | 785 | -1,287 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Unit cost: net cost per ASK
| Second quarter | Half year | ||
| 2022 | 2021* | 2022 | 2021* |
Revenues (in €m) | 6,707 | 2,750 | 11,152 | 4,910 |
Income/(loss) from current operations (in €m) -/- | -386 | 753 | -36 | 1,934 |
Total operating expense (in €m) | 6,321 | 3,503 | 11,116 | 6,844 |
Passenger network business – other revenues (in €m) | -103 | -77 | -208 | -131 |
Cargo network business – other revenues (in €m) | -117 | -99 | -231 | -190 |
Third-party revenues in the maintenance business (in €m) | -345 | -255 | -642 | -514 |
Transavia - other revenues (in €m) | 10 | - | 12 | - |
Third-party revenues of other businesses (in €m) | -8 | -6 | -13 | -13 |
Net cost (in €m) | 5,758 | 3,066 | 10,034 | 5,997 |
Capacity produced, reported in ASK* | 72,127 | 39,657 | 130,192 | 74,254 |
Net cost per ASK (in € cents per ASK) | 7.98 | 7.73 | 7.71 | 8.08 |
Gross change |
| 3.2% |
| -4.6% |
Currency effect on net costs (in €m) |
| -70 |
| -118 |
Change at constant currency |
| 0.9% |
| -6.4% |
Fuel price effect (in €m) |
| 492 |
| 668 |
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK) | 7.98 | 9.15 | 7.71 | 9.14 |
Change at constant currency and fuel price basis |
| -12.7% |
| -15.6% |
* 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
| Second quarter | Half year | ||
| 2022 | Change | 2022 | Change |
Revenue (in €m) | 4,062 | +146.7% | 6,743 | +125.8% |
EBITDA (in €m) | 444 | +726 | 422 | +1,217 |
Operating result (in €m) | 133 | +700 | -230 | +1,179 |
Operating margin (%) | 3.3% | +37.8 pt | -3.4% | +43.8 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | 343 | +741 | 255 | +1,274 |
Operating cash flow (before WCR and restructuring) margin | 8.4% | +32.6 pt | 3.8% | +37.9 pt |
KLM Group
| Second quarter | Half year | ||
| 2022 | Change | 2022 | Change |
Revenue (in €m) | 2,782 | +130.5% | 4,685 | +119.2% |
EBITDA (in €m) | 495 | +462 | 729 | +807 |
Operating result (in €m) | 262 | +447 | 266 | +787 |
Operating margin (%) | 9.4% | +24.8 pt | 5.7% | +30.1 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | 469 | +525 | 667 | +836 |
Operating cash flow (before WCR and restructuring) margin | 16.9% | +21.5 pt | 14.2% | +22.2 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 June 2022
Aircraft type | AF | KL | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 31/12/21 |
B777-300 | 43 | 16 |
| 19 | 16 | 24 | 59 | 59 |
|
B777-200 | 19 | 15 |
| 27 |
| 7 | 34 | 33 | -3 |
B787-9 | 10 | 13 |
| 4 | 7 | 12 | 23 | 23 |
|
B787-10 |
| 6 |
| 2 | 4 |
| 6 | 5 |
|
A380-800 | 8 |
|
| 4 | 1 | 3 | 8 |
|
|
A350-900 | 18 |
|
| 3 | 7 | 8 | 18 | 18 | 6 |
A330-300 |
| 5 |
|
|
| 5 | 5 | 5 | 1 |
A330-200 | 15 | 6 |
| 11 |
| 10 | 21 | 21 |
|
Total Long-Haul | 113 | 61 | 0 | 70 | 35 | 69 | 174 | 164 | 4 |
B737-900 |
| 5 |
| 5 |
|
| 5 | 5 |
|
B737-800 |
| 31 | 95 | 33 | 8 | 85 | 126 | 126 | 10 |
B737-700 |
| 10 | 4 | 7 |
| 7 | 14 | 14 |
|
A321 | 19 |
|
| 11 |
| 8 | 19 | 19 |
|
A320 | 41 |
|
| 4 | 4 | 33 | 41 | 40 | -2 |
A319 | 25 |
|
| 12 |
| 13 | 25 | 24 | -4 |
A318 | 12 |
|
| 6 |
| 6 | 12 | 11 | -1 |
A220-300 | 10 |
|
| 7 |
| 3 | 10 | 9 | 3 |
Total Medium-Haul | 107 | 46 | 99 | 85 | 12 | 155 | 252 | 248 | 6 |
Canadair Jet 1000 | 9 |
|
| 9 |
|
| 9 | 6 | -5 |
Canadair Jet 700 |
|
|
|
|
|
|
|
|
|
Embraer 195 E2 |
| 12 |
|
|
| 12 | 12 | 12 | 5 |
Embraer 190 | 19 | 30 |
| 16 | 5 | 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 | 43 | 59 | 0 | 40 | 19 | 43 | 102 | 97 | 0 |
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 | 265 | 170 | 99 | 199 | 66 | 269 | 534 | 515 | 10 |
SECOND QUARTER 2022 TRAFFIC
Passenger network activity*
|
| Q2 |
|
| Year to date | ||
Total Passenger network* | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Passengers carried (‘000s) | 17,556 | 5,853 | 199.9% |
| 29,497 | 10,321 | 185.8% |
Revenue pax-kilometers (m RPK) | 52,479 | 15,931 | 229.4% |
| 91,346 | 29,362 | 211.1% |
Available seat-kilometers (m ASK) | 61,697 | 36,417 | 69.4% |
| 114,268 | 70,003 | 63.2% |
Load factor (%) | 85.1% | 43.7% | 41.3 |
| 79.9% | 41.9% | 38.0 |
|
|
|
|
|
|
|
|
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 5,771 | 1,769 | 226.2% |
| 10,155 | 3,338 | 204.2% |
Revenue pax-kilometers (m RPK) | 42,070 | 12,199 | 244.9% |
| 74,396 | 23,163 | 221.2% |
Available seat-kilometers (m ASK) | 49,285 | 30,625 | 60.9% |
| 92,525 | 59,951 | 54.3% |
Load factor (%) | 85.4% | 39.8% | 45.5 |
| 80.4% | 38.6% | 41.8 |
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 2,289 | 423 | 440.6% |
| 3,530 | 698 | 406.1% |
Revenue pax-kilometers (m RPK) | 16,330 | 3,113 | 424.6% |
| 25,386 | 5,143 | 393.6% |
Available seat-kilometers (m ASK) | 19,139 | 9,005 | 112.5% |
| 32,291 | 16,068 | 101.0% |
Load factor (%) | 85.3% | 34.6% | 50.8 |
| 78.6% | 32.0% | 46.6 |
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 767 | 171 | 347.8% |
| 1,442 | 366 | 294.2% |
Revenue pax-kilometers (m RPK) | 7,215 | 1,650 | 337.3% |
| 13,726 | 3,514 | 290.7% |
Available seat-kilometers (m ASK) | 8,144 | 5,165 | 57.7% |
| 15,801 | 10,457 | 51.1% |
Load factor (%) | 88.6% | 32.0% | 56.6 |
| 86.9% | 33.6% | 53.3 |
|
|
|
|
|
|
|
|
Asia / Middle East |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 859 | 327 | 163.0% |
| 1,493 | 601 | 148.2% |
Revenue pax-kilometers (m RPK) | 6,117 | 2,190 | 179.2% |
| 10,508 | 4,038 | 160.2% |
Available seat-kilometers (m ASK) | 7,390 | 7,103 | 4.0% |
| 14,610 | 14,348 | 1.8% |
Load factor (%) | 82.8% | 30.8% | 51.9 |
| 71.9% | 28.1% | 43.8 |
|
|
|
|
|
|
|
|
Africa |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 936 | 537 | 74.1% |
| 1,751 | 954 | 83.6% |
Revenue pax-kilometers (m RPK) | 5,568 | 2,948 | 88.9% |
| 10,360 | 5,214 | 98.7% |
Available seat-kilometers (m ASK) | 6,839 | 5,287 | 29.4% |
| 13,137 | 10,088 | 30.2% |
Load factor (%) | 81.4% | 55.8% | 25.7 |
| 78.9% | 51.7% | 27.2 |
|
|
|
|
|
|
|
|
Caribbean / Indian Ocean |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 920 | 310 | 196.5% |
| 1,939 | 719 | 169.8% |
Revenue pax-kilometers (m RPK) | 6,840 | 2,298 | 197.7% |
| 14,415 | 5,255 | 174.3% |
Available seat-kilometers (m ASK) | 7,773 | 4,065 | 91.2% |
| 16,687 | 8,990 | 85.6% |
Load factor (%) | 88.0% | 56.5% | 31.5 |
| 86.4% | 58.4% | 27.9 |
|
|
|
|
|
|
|
|
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 11,784 | 4,084 | 188.5% |
| 19,342 | 6,983 | 177.0% |
Revenue pax-kilometers (m RPK) | 10,409 | 3,731 | 179.0% |
| 16,950 | 6,199 | 173.4% |
Available seat-kilometers (m ASK) | 12,412 | 5,792 | 114.3% |
| 21,743 | 10,052 | 116.3% |
Load factor (%) | 83.9% | 64.4% | 19.4 |
| 78.0% | 61.7% | 16.3 |
* Air France and KLM
Transavia activity
|
| Q2 |
|
| Year to date | ||
Transavia | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Passengers carried (‘000s) | 5,247 | 1,175 | 346.8% |
| 7,828 | 1,527 | 412.8% |
Revenue pax-kilometers (m RPK) | 8,886 | 1,939 | 358.2% |
| 13,154 | 2,522 | 421.6% |
Available seat-kilometers (m ASK) | 10,430 | 3,240 | 221.9% |
| 15,924 | 4,251 | 274.6% |
Load factor (%) | 85.2% | 59.9% | 25.3 |
| 82.6% | 59.3% | 23.3 |
Total group passenger activity**
|
| Q2 |
|
| Year to date | ||
Total group** | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Passengers carried (‘000s) | 22,803 | 7,028 | 224.5% |
| 37,326 | 11,848 | 215.0% |
Revenue pax-kilometers (m RPK) | 61,365 | 17,870 | 243.4% |
| 104,499 | 31,884 | 227.7% |
Available seat-kilometers (m ASK) | 72,127 | 39,657 | 81.9% |
| 130,192 | 74,254 | 75.3% |
Load factor (%) | 85.1% | 45.1% | 40.0 |
| 80.3% | 42.9% | 37.3 |
** Air France, KLM and Transavia
Cargo activity
|
| Q2 |
|
| Year to date | ||
Total Group | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 1,731 | 2,087 | (17.0%) |
| 3,497 | 4,161 | (16.0%) |
Available tonne-km (m ATK) | 3,341 | 2,623 | 27.4% |
| 6,315 | 5,311 | 18.9% |
Load factor (%) | 51.8% | 79.6% | (27.7) |
| 55.4% | 78.3% | (23.0) |
Air France activity
|
| Q2 |
|
| Year to date | ||
Total Passenger network activity | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Passengers carried (‘000s) | 10,344 | 3,606 | 186.8% |
| 17,449 | 6,652 | 162.3% |
Revenue pax-kilometers (m RPK) | 30,995 | 9,155 | 238.6% |
| 54,082 | 17,723 | 205.1% |
Available seat-kilometers (m ASK) | 36,621 | 17,637 | 107.6% |
| 67,491 | 34,052 | 98.2% |
Load factor (%) | 84.6% | 51.9% | 32.7 |
| 80.1% | 52.0% | 28.1 |
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 3,562 | 1,093 | 225.8% |
| 6,331 | 2,142 | 195.6% |
Revenue pax-kilometers (m RPK) | 25,065 | 7,017 | 257.2% |
| 44,517 | 14,010 | 217.8% |
Available seat-kilometers (m ASK) | 29,459 | 14,336 | 105.5% |
| 55,192 | 28,252 | 95.4% |
Load factor (%) | 85.1% | 48.9% | 36.1 |
| 80.7% | 49.6% | 31.1 |
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 6,781 | 2,513 | 169.9% |
| 11,116 | 4,510 | 146.5% |
Revenue pax-kilometers (m RPK) | 5,930 | 2,138 | 177.3% |
| 9,565 | 3,713 | 157.6% |
Available seat-kilometers (m ASK) | 7,162 | 3,301 | 117.0% |
| 12,300 | 5,800 | 112.1% |
Load factor (%) | 82.8% | 64.8% | 18.0 |
| 77.8% | 64.0% | 13.7 |
|
| Q2 |
|
| Year to date | ||
Cargo activity | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 889 | 906 | (1.8%) |
| 1,796 | 1,812 | (0.8%) |
Available tonne-km (m ATK) | 1,861 | 1,268 | 46.7% |
| 3,518 | 2,602 | 35.2% |
Load factor (%) | 47.8% | 71.4% | (23.6) |
| 51.1% | 69.6% | (18.6) |
KLM activity
|
| Q2 |
|
| Year to date | ||
Total Passenger network activity | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Passengers carried (‘000s) | 7,212 | 2,247 | 220.9% |
| 12,049 | 3,669 | 228.4% |
Revenue pax-kilometers (m RPK) | 21,484 | 6,776 | 217.1% |
| 37,264 | 11,639 | 220.2% |
Available seat-kilometers (m ASK) | 25,077 | 18,780 | 33.5% |
| 46,777 | 35,951 | 30.1% |
Load factor (%) | 85.7% | 36.1% | 49.6 |
| 79.7% | 32.4% | 47.3 |
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 2,209 | 676 | 226.8% |
| 3,823 | 1,196 | 219.7% |
Revenue pax-kilometers (m RPK) | 17,005 | 5,183 | 228.1% |
| 29,878 | 9,153 | 226.4% |
Available seat-kilometers (m ASK) | 19,827 | 16,289 | 21.7% |
| 37,333 | 31,700 | 17.8% |
Load factor (%) | 85.8% | 31.8% | 53.9 |
| 80.0% | 28.9% | 51.2 |
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) | 5,003 | 1,572 | 218.3% |
| 8,225 | 2,473 | 232.6% |
Revenue pax-kilometers (m RPK) | 4,479 | 1,593 | 181.2% |
| 7,385 | 2,486 | 197.1% |
Available seat-kilometers (m ASK) | 5,250 | 2,491 | 110.7% |
| 9,443 | 4,251 | 122.1% |
Load factor (%) | 85.3% | 63.9% | 21.4 |
| 78.2% | 58.5% | 19.7 |
|
| Q2 |
|
| Year to date | ||
Cargo activity | 2022 | 2021 | Variation |
| 2022 | 2021 | Variation |
Revenue tonne-km (m RTK) | 842 | 1,181 | (28.7%) |
| 1,701 | 2,349 | (27.6%) |
Available tonne-km (m ATK) | 1,480 | 1,355 | 9.2% |
| 2,797 | 2,710 | 3.2% |
Load factor (%) | 56.9% | 87.2% | (30.3) |
| 60.8% | 86.7% | (25.9) |
1 Change versus 31 Dec 2021
Attachment
