Air France-KLM Q3 2022 results

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.

CapacityAir 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.

YieldThe 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 resultAbove 900 million euros for Full Year 2022, based on fuel forward curve at 21 October 2022 and under currently foreseen circumstances.

CashAs 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 flow” is 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 50Netherlands: Local +31 (0)20 703 8210UK: Local +44 (0)330 165 4027US: 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 circumstances2 Change versus 31 Dec 2021

Attachment

  • AFKL Q3_2022 Press release EN
Air France KLM (BIT:AF)
Historical Stock Chart
Von Dez 2022 bis Jan 2023 Click Here for more Air France KLM Charts.
Air France KLM (BIT:AF)
Historical Stock Chart
Von Jan 2022 bis Jan 2023 Click Here for more Air France KLM Charts.