AF Air France KLM

Q3 2024 results press release

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THIRD QUARTER 2024

November 7, 2024

Operating result stable at €1.2 billion excluding Olympic Games impact Underlying Group unit revenue trend favorable

• Group capacity increased by 3.6% compared to last year with load factor at 89%
• Group revenues at €9.0bn, up 3.7% compared to last year
• Unit cost at +3.4% compared to 2023 due to continued higher cost levels for staff, operation and maintenance at KLM. Firm measures announced to structurally improve KLM’s operational and financial performance
• Operating result stood at €1,180m, with operating margin at 13.1%. Operating result equivalent to that of last year excluding Olympic Games unit revenue impact of €160m. One-time payment of €50m to Air France staff for successful operations during the event
• 9-months Recurring adjusted operating free cash flow at €23m
• Cash at hand at €9bn and Net debt/EBITDA ratio of 1.7x
• Acquisition of a 19.9% non-controlling stake in the share capital of SAS AB successfully completed
  
  

Commenting on the results, Mr. Benjamin Smith, Group CEO, said:

“The third quarter revealed mixed trends for the Air France-KLM Group. Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements. These measures are aligned with the Group’s ongoing transformation efforts aimed at further enhancing overall performance.

Beyond their financial implications, the Olympic Games provided a unique platform to demonstrate the Group’s operational expertise and capabilities while offering unparalleled visibility for France as a destination. In the long term, this will be advantageous for the Group.

We also made further progress in our decarbonization initiatives, as evidenced by the signing of a major Sustainable Aviation Fuel (SAF) purchase agreement with TotalEnergies. This contract, one of the largest ever signed by the Group, highlights our commitment to fostering the development of SAF supply chains, which is a crucial lever in reducing our carbon footprint.”

Q3 Group unit revenue broadly stable

	Third Quarter			Year to date
	2024	change	change constant currency	2024	change	change constant currency
Group Passengers (thousands)	27,855	+3.5%		74,470	+4.6%
Group Capacity (ASK m)	87,795	+3.6%		241,861	+4.1%
Traffic (RPK m)	78,367	+3.1%		212,570	+4.0%
Group Passenger load factor	89.3%	-0.4pt		87.9%	-0.1pt
Passenger unit revenue per ASK (€ cts)	8.78	-1.0%	-0.8%	8.22	-0.2%	+0.3%

	Third Quarter			Year to date
	2024	change	change constant currency	2024	change	change constant currency
Revenues (€m)	8,979	+3.7%	+3.8%	23,582	+4.3%	+4.7%
EBITDA (€m)	1,896	-97	-65	3,241	-366	-271
Operating result (€m)	1,180	-162	-130	1,204	-565	-469
Operating margin (%)	13.1%	-2.4pt	-2.0pt	5.1%	-2.7pt	-2.3pt
Net income (€m)	824	-122		510	-711
Group unit revenue per ASK (€cts)	9.32	-0.7%	-0.6%	8.79	-1.1%	-0.6%
Group unit cost at constant fuel, constant currency and excluding ETS	7.97		+3.4%	8.29		+3.0%

	30 September 2024	31 Dec 2023
Operating Free cash flow (€m)	28
Adj. recurring operating free cash flow* (€m)	23
Net Debt (€m)	6,698	5,041
EBITDA trailing 12 months (€m)	3,842	4,208
Net Debt/EBITDA ratio	1.7x	1.2x

*IFRS Operating free cash flow corrected from the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period and payment of lease debt and interests paid and received

Third Quarter 2024: Operating result at €1.2bn and stable underlying unit revenue performance

In the third quarter 2024, Air France-KLM welcomed 27.9 million passengers which is 3.5% above last year. As capacity increased by 3.6% and traffic grew by 3.1%, the load factor was broadly stable compared to last year at 89%.

The Group unit revenue per ASK was down -0.6% at constant currency compared to last year. Cargo unit revenues per ATK was up +6.3% against a constant currency. On the passenger side, less international inbound traffic to Paris and less travel from France as a consequence of the Olympic Games, resulted in €160 million less passenger unit revenue. Corrected for this impact, the Group unit revenue was 1.4% positive.

The operating result was €162 million below last year standing at €1,180 million and was impacted by the Olympic Games impact (€160 million), an increase of the ex-fuel unit costs (€230 million), the latter almost fully compensated by an increase of unit revenues (€113 million) and a decrease of fuel & ETS unit costs (€100 million).

The Group unit cost¹ per ASK is up 3.4% versus last year and was above the outlook provided during the Q2 2024 results presentation (+2% year-over-year).

The initially estimated 2% unit cost increase is coming from higher flight related cost and higher salary cost due to collective labor agreements at Air France (impact as per April 2024) and KLM (impact as per Q4 2023), and a one-time payment of circa €50 million to Air France staff rewarding the strong operational performance during the Olympic Games.

The additional 1.4 point unit cost was caused by difficult summer operations, mainly at KLM and Transavia, resulting in higher disruption cost (€65 million), the impact of Crowdstrike €25 million and lower capacity at Transavia (-3%).

Cash

For the first nine months, the Group reported an operating cash flow of €28 million, impacted by a negative working capital coming from the deferrals. Inherited from the pandemic, these deferrals correspond to the previously guided one time pension payment of €610 million by Air France in January 2024 to the Caisse des Retraites des Personnels Navigants (CRPN) as well as the social charges and wages taxes amounting to circa €120 million per quarter.

The net capex amounted to €2.5 billion.

Recurring adjusted operating free cash flow excluding deferred social charges and wage taxes and including lease debt and net interest payment amounted to +€23 million.

The cash at hand at the end of September amounted to €9.0 billion, a decrease of €1.5 billion versus the end of 2023 mainly due to the payment of deferred pension, social charges and wages taxes inherited from the pandemic. Net Debt / EBITDA ratio stood at 1.7x, which is within our ambition of 1.5x to 2.0x.

On the first of July the Group redeemed fully the July 2021 €300 million bonds (coupon 3%).

Sustainability

Transition plan and trajectory

Since 2019, Air France-KLM has accelerated its environmental transition and has set ambitious sustainability performance targets to highlight its sustainability commitments. The Group’s ambition is to reduce its greenhouse gas (GHG) emissions by 30% by 2030 compared to 2019 (gCO₂eq/RTK). The Group aims to achieve this goal through a combination of fleet renewal, operational measures such as eco-piloting, and the incorporation of at least 10% of more sustainable aviation fuel on all its flights. These ambitious targets go beyond regulatory obligations.

Sustainability key performance measures:

Fleet Renewal: Air France-KLM is committed to renewing its fleet with more fuel-efficient and less noisy aircraft. By the end of September 2024, 24% of its fleet was composed of new-generation aircraft, compared to 19% end of September 2023. The Group plans to increase this ratio to 80% by 2030.

Compared to previous generation aircraft the A220 reduces CO₂ emissions by 20%, the A320neo family by 15%, and the A350 by 25%.

Since the end of December 2023 the following new generation aircraft were phased in, eight A350, five A320 Neo, seven A321 Neo, of which the first delivery to KLM in the third quarter, and five A220. In the same period the following old generation¹ aircraft were phased out, one 737-800, three A319, one A320 and one CRJ-1000.

	30 September 2024	30 September 2023	Change
New generation fleet2	24%	19%	+5pt

More Sustainable Aviation Fuel (SAF):

Air France-KLM and TotalEnergies have signed in September an off-take agreement for TotalEnergies to supply up to 1.5 million tons of more sustainable aviation fuel (SAF) to Air France-KLM Group airlines over a 10-year period, until 2035.

This agreement marks one the largest SAF purchase contracts signed by Air France-KLM to date. In 2022 and 2023, Air France-KLM was the world's leading SAF user, representing 17% and 16% of total global production respectively.

The Group adheres to a strict sourcing policy, committing to purchasing second generation SAF that do not compete with the human or animal food chain, that are RSB or ISCC+ certified for their sustainability, and that are not produced from palm oil and do not contribute to deforestation, and which reduce CO₂ emissions by at least 65% over their entire lifecycle—from production to combustion—compared to fossil kerosene.

2024 outlook

Capacity

The Group expects its capacity in Available Seat Kilometers for Air France-KLM Group including Transavia to increase by 4% in 2024 compared to 2023.

Unit cost³

For the full year 2024, the Group expects a unit cost increase of circa +3% compared to 2023 (previously +2%) as a consequence of the unit cost increase of +3.4% in the third quarter and higher than expected cost in Q4. Less capacity and additional maintenance cost on the component business, mainly at KLM led to this outlook revision. Firm measures announced to structurally improve KLM’s operational and financial performance.

See for detailed information the unit cost slide in the outlook section of the results presentation.

Capex

Full year 2024 net capex expected to be at 3 billion euros (Previously below 3 billion euros) due to timing effects related to sale of assets which are expected to be executed in 2025.

2025: Proposed increase of the solidarity tax on flight tickets (‘TSBA’) in France would impact the Group’s profitability and competitiveness

Currently discussed in the French Parliament for the 2025 budget, this increase of the aviation tax applicable to all flights departing from France would:

• result in higher fares reducing accessibility of air travel
• impact profitability due to limitation of price elasticity, preventing the full transfer of charges to customers
• hamper our ability to deliver our sustainability trajectory without any benefit to the environment unless collected tax is allocated to the decarbonation of the aviation sector
• further reduce the competitiveness of France-based carriers and increase competitive distortion.

The Potential FY 2025 impact:

• projected incremental tax of €280m
• €90m - €170m negative on the operating result

Schiphol Airport tariff increase as of April 2025

Schiphol airport recently announced a tariff increase of 41% as per April 2025. KLM Group estimates an EBIT impact in 2025 in the range of €65m - €110m.

Business review

Network result

Network	Third Quarter			Year to date
	2024	change	change constant currency	2024	change	change constant currency
Traffic revenues (€m)	7,047	+1.8%		18,805	+1.6%
Total revenues (€m)	7,351	+2.0%		19,646	+1.7%
Salaries and related costs (€m)	-1,723	+10.5%		-5,002	+9.1%
Aircraft fuel, excl. ETS (€m)	-1,639	-1.5%		-4,753	-0.3%
Other operating expenses (€m)	-2,552	+7.0%		-7,367	+7.0%
EBITDA (€m)	1,436	-10.1%		2,524	-18.0%
Depreciation & Amortization (€m)	-537	+5.9%		-1,535	+6.2%
Operating result (€m)	899	-192	-156	990	-644	-543
Operating margin (%)	12.2%	-2.9 pt		5.0%	-3.4 pt

Compared to the third quarter 2023, total revenues increased by +2.0% to €7,351 million. The operating result stood at €899 million which was €156 million below last year against a constant currency. The decrease is explained by lower passenger unit revenue, partly compensated by higher Cargo unit revenues and a lower fuel price, and high unit cost at KLM.

Passenger network unit revenue impacted by Olympic Games

Passenger network	Third Quarter			Year to date
	2024	change	change constant currency	2024	change	change constant currency
Passengers (thousands)	20,499	+3.3%		56,261	+3.5%
Capacity (ASK m)	73,465	+3.4%		206,270	+3.3%
Traffic (RPK m)	65,526	+3.2%		180,744	+3.4%
Load factor	89.2%	-0.2pt		87.6%	+0.1pt
Total passenger revenues (€m)	6,783	+2.1%	+2.3%	17,959	+2.9%	+3.4%
Traffic passenger revenues (€m)	6,576	+1.5%	+1.6%	17,431	+2.5%	+3.0%
Unit revenue per ASK (€ cts)	8.95	-1.9%	-1.8%	8.45	-0.8%	-0.2%

During the third quarter 2024 capacity in Available Seat Kilometers (ASK) was 3.4% higher than last year. Traffic growth (+3.2%) was close to the capacity growth and has led to a broadly stable load factor at 89.2%. Yield corrected for currency decreased by -1.4% against a constant currency, resulting in a negative unit revenue per ASK development versus last year.

The passenger network unit revenues were impacted by the Olympic Games in Paris. The international markets showed a significant avoidance of Paris while travel between the city and other destinations was also below the usual summer average as residents in France postponed their holidays. Unit revenues declined by 1.8% against a constant currency compared to last year, although excluding the Olympic Games impact the passenger unit revenues would have been 0.1% positive.

Passengers who were avoiding destination Paris and the fewer travelers from Paris due to the Olympic Games were as much as possible replaced by transfer passenger, which had a negative impact on the yield. During the third quarter we observed therefore per region the following trends:

North Atlantic
Q3 capacity increased by 4% compared with last year while load factor remained broadly stable at 90% (-0.5pt) and yield decreased by 2.8%.

Latin America
Capacity was down 1.3% on the back of a high comparison basis while industry capacity is increasing. Load factor slightly decreased and reached 92% while yield reduced by 2.4% compared to significant high yields last year.

Asia & Middle East
Capacity in Q3 has significantly increased by 9% while load factor increased by 0.5% and reached 90%. Yield decreased by 7.4% mainly driven by high competition from Chinese carriers and demand still lagging behind in Japan and China compared to pre-covid levels.

Caribbean & Indian Ocean

After Capacity decreases in the previous quarter, this quarter the capacity increased by 3.2%. Load factor decreased by 2.3 points while yield remained broadly stable (-0.5%).

Africa
Strong yields on late bookings resulted in a yield increase of 1.2% while load factor (+0.9 point) benefited from a lower capacity (-4.3%) than last year.

Short and Medium-haul
Positive developments on capacity, yield and load factor in Europe. Despite the capacity increase by 1%, the yield increased by 0.5% and the load factor by 0.6 point.

Cargo: Strong Q3 Unit revenues

Cargo business	Third Quarter			Year to date
	2024	change	change constant currency	2024	change	change constant currency
Tons (thousands)	226	+3.5%		661	+3.3%
Capacity (ATK m)	3,707	+1.5%		10,724	+2.1%
Traffic (RTK m)	1,687	+3.1%		4,936	+3.3%
Load factor	45.5%	+0.7pt		46.0%	+0.5pt
Total Cargo revenues (€m)	561	+0.6%	+1.1%	1,669	-9.2%	-8.3%
Traffic Cargo revenues (€m)	471	+7.3%	+7.7%	1,374	-8.5%	-7.7%
Unit revenue per ATK (€cts)	12.74	+5.9%	+6.3%	12.83	-10.4%	-9.6%

During the third quarter 2024 capacity in Available Ton Kilometers (ATK) was +1.5% higher than last year. Traffic growth (+3.1%) was above the capacity growth and has led to an increase of the load factor reaching 45.5%. Yield corrected for currency increased by +4.5% against a constant currency, resulting in an increase of unit revenue per ASK at constant currency of 6.3%.

Today’s air freight market is dynamic and Asia in particular is performing well driven by e-commerce and the Red sea disruption. In response to market dynamics, a part of the Group’s full freighter capacity is being redeployed to Asia.

Transavia: Q3 Operating margin improvement despite Olympic Games impact

Transavia	Third Quarter		Year to date
	2024	change	2024	change
Passengers (thousands)	7,356	+4.1%	18,208	+8.0%
Capacity (ASK m)	14,330	+4.5%	35,591	+8.7%
Traffic (RPK m)	12,841	+2.7%	31,826	+7.4%
Load factor	89.6%	-1.5pt	89.4%	-1.1pt
Unit revenue per ASK (€cts)	7.93	+5.0%	6.90	+5.3%
Unit cost per ASK (€cts)	6.35	+2.9%	6.65	+2.4%
Total Passenger revenues (€m)	1,118	+10.3%	2,424	+15.2%
Salaries and related costs (€m)	-198	+19.0%	-543	+16.9%
Aircraft fuel, excl. ETS (€m)	-238	-6.4%	-608	+2.5%
Other operating expenses (€m)	-383	+16.9%	-968	+15.1%
EBITDA (€m)	300	+12.6%	305	+48.5%
Depreciation & Amortization (in €m)	-75	-4.6%	-219	+15.8%
Operating result (€m)	225	+37	86	+70
Operating margin (%)	20.1%	+1.6pt	3.6%	+2.8pt

Despite Transavia’s capacity increase in available seat kilometers of 4.5%, unit revenue increased by +5.0% while the load factor slightly decreased. The implementation in the second quarter of the paid hand luggage initiative bore also fruits in the third quarter and brought more than €20 million revenues this quarter.
The operating result amounted to €225 million compared to €188 million last year driven by higher revenues. The impact of the Olympic Games on Transavia France in July and August was circa €35 million.

In the first nine months Transavia’s operating result increased by €70 million to €86 million, underlining that route maturity, dynamic pricing ancillaries and Flying Blue features improvement are paying off.

Maintenance business: Third party revenues continue to grow

Maintenance	Third Quarter		Year to date
	2024	Change	2024	Change
Total Revenues (€m)	1,232	+17.0%	3,657	+20.5%
o/w Third party revenues (€m)	507	+16.0%	1,508	+26.6%
External expenses (€m)	-776	+16.1%	-2,378	+23.3%
Salaries and related costs (€m)	-289	+10.2%	-879	+10.7%
EBITDA (€m)	167	+36.0%	400	+28.6%
Depreciation & Amortization (€m)	-110	+82.5%	-276	+48.5%
Operating result (€m)	58	-5	123	-1
Operating margin (%)	4.7%	-1.3pt	3.4%	-0.7pt

The maintenance segment continued its growth in the third quarter 2024. Third party revenues increased by +16.0%, showing a strong recovery especially on the engine side, which was in line with the increase in total revenues of 17.0%. During the third quarter, the supply chain disruptions were still strongly impacting the operations resulting in higher cost and loans on components.

The operating margin stood at 4.7%, which is 1.3 point lower than in 2023.

Air France’s Q3 performance improved compared to last year excluding Olympic Games impact

Air France Group

	Third Quarter		Year to date
	2024	change	2024	change
Revenue (in €m)	5,543	+3.1%	14,377	+2.9%
Salaries and related costs (in €m)	-1,418	+9.4%	-4,044	+9.2%
Aircraft fuel, excl. ETS (in €m)	-1,150	-1.0%	-3,207	-0.1%
Other operating expenses (in €m)	-1,793	+5.0%	-5,173	+8.1%
EBITDA (in €m)	1,183	-26	1,954	-313
Depreciation & Amortization (in €m)	-451	+12.0%	-1,276	+10.0%
Operating result* (in €m)	732	-74	678	-429
Operating margin (%)	13.2%	-1.8pt	4.7%	-3.2pt

*Airlines 2023 results were still including Flying Blue figures, resulting in a negative impact in the change columns

The operating result stood at €732 million which was €74 million below last year, mainly driven by the unit revenue impact of the Olympic Games in July and August (€160m), a one-time payment of €50m to Air France staff for the successful operations during the event and Flying Blue results included in last year (presented separately since 2024).

KLM unit revenue improvement more than offset by unit cost development

KLM Group

	Third Quarter		Year to date
	2024	change	2024	change
Revenue (in €m)	3,549	+3.6%	9,553	+5.5%
Salaries and related costs (in €m)	-973	+15.0%	-2,936	+13.0%
Aircraft fuel, excl. ETS (in €m)	-728	-3.8%	-2,156	-0.1%
Other operating expenses (in €m)	-1,189	+14.7%	-3,336	+12.8%
EBITDA (in €m)	660	-127	1,125	-220
Depreciation & Amortization (in €m)	-264	6.6%	-760	+12.2%
Operating result* (in €m)	396	-143	365	-303
Operating margin (%)	11.1%	-4.6pt	3.8%	-3.6pt

*Airlines 2023 results were still including Flying Blue figures, resulting in a negative impact in the change columns

Third quarter revenues grew by +3.6% while the cost increase outpaced the revenues significantly, driven by an increase of salary cost. Last year, during the third quarter no salary increases related to the current CLA were implemented yet, which explains, next to the growth in FTE’s, the current increase in salary cost. Flight related cost and maintenance cost contributed as well to the year-over-year 8.4% increase in the cost per available seat kilometer. The capacity increase for the KLM Group was only +0.2% due to pilots shortage and maintenance issues.

As a reaction on the rising costs, KLM announced in October firm measures to structurally improve the company's operational and financial performance. These measures focus on increasing productivity and simplifying the organization, cutting costs and deferring or postponing investments. These interventions are made necessary by the rising cost of equipment, staff and airport fees. Furthermore, KLM is engaged in an extensive fleet renewal - a multi-billion dollar investment aimed at cleaner, quieter and more fuel-efficient flying.

KLM's 'Back on Track' targets a €450m short-term EBIT improvement and EBIT Margin above 8% by 2026-2028 via:

• Increasing labour productivity by at least 5% by 2025, including through automation, mechanization and reducing absenteeism.
• Resolve the impact of the pilot shortage and ensure that KLM can operate all flights with its pilots, with a better balance between intercontinental and European flights.
• Due to the shortage of technicians and ongoing supply problems of parts, KLM can operate fewer flights. Measures are being taken at Engineering & Maintenance to reduce the number of cancellations.
• Improvement of existing, and introduction of new products on board. Trials are underway with an expanded catering offer and optimization of aircraft layout, aimed at increasing revenues by at least €100 million a year.
• Measures to simplify the organisation, achieve more synergy, get rid of overlap and overhead. One example is the planned reorganization of flight services and training organizations.
• Finally, KLM will explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations.

For KLM Catering Services (KCS) KLM is exploring strategic options to make KCS future proof as investment in KCS is imminent. Any strategic option needs to ensure cost efficiency, maintaining operational control, assure the quality for passengers and supporting KLM's sustainability and personalized catering goals.

Continued momentum for Flying Blue Miles

Flying Blue Miles

	Third Quarter		Year to date
	2024	change	2024	change
Revenue (in €m)	200	n.a.	604	n.a.
Operating result (in €m)	55	n.a.	156	n.a.
Operating margin (%)	27.5%	n.a.	25.8%	n.a.

In the third quarter Flying Blue miles generated €200 millions of total revenue, including third party airline and non-airline partners. The operating margin stood at 27.5%.

Flying Blue steadily attracts new members, benefiting from a good momentum of the commercial partnerships.

Nb: Sum of individual airline and Flying Blue results does not add up to AF-KLM total due to intercompany eliminations at Group level.

******

The results presentation is available at www.airfranceklm.com on November 7, 2024 from 8:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on November 7, 2024 at 09.30 am CET.

To connect to the webcast, please use below link:

https://channel.royalcast.com/landingpage/airfranceklm/20241107_1/

Investor Relations		Press Office
Michiel Klinkers	Marouane Mami	+33 1 41 56 56 00
Michiel.klinkers@airfranceklm.com	marouane.mami@airfranceklm.com	mail.mediarelations@airfranceklm.com

Income statement

	Third Quarter			Year to date
in € million	2024	2023	Variation	2024	2023	Variation
		restated *
Revenues from ordinary activities	8,979	8,660	4        %	23,582	22,612	4        %
Aircraft fuel	-1,878	-1,918	-2        %	-5,363	-5,360	0        %
Carbon emission	-66	-57	16        %	-191	-139	37        %
Chartering costs	-133	-167	-20        %	-380	-410	-7        %
Landing fees and air routes charges	-569	-539	6        %	-1,545	-1,458	6        %
Catering	-253	-225	12        %	-686	-618	11        %
Handling charges and other operating costs	-560	-499	12        %	-1,534	-1,393	10        %
Aircraft maintenance costs	-781	-585	34        %	-2,379	-1,831	30        %
Commercial and distribution costs	-256	-268	-4        %	-810	-785	3        %
Other external expenses	-495	-464	7        %	-1,488	-1,377	8        %
Salaries and related costs	-2,401	-2,146	12        %	-6,997	-6,311	11        %
Taxes other than income taxes	-41	-40	2        %	-137	-133	3        %
Capitalized production	301	224	34        %	1,029	758	36        %
Other income and expenses	49	17	188        %	140	52	169        %
EBITDA	1,896	1,993	-5        %	3,241	3,607	-10        %
Amortization, depreciation and provisions	-716	-651	10        %	-2,037	-1,838	11        %
Income from current operations	1,180	1,342	-12        %	1,204	1,769	-32        %
Sales of aircraft equipment	10	5	100        %	25	33	-24        %
Other non current income and expenses	–	-3	-100        %	-118	11	nm
Income from operating activities	1,190	1,344	-11        %	1,111	1,813	-39        %
Interests expenses	-157	-148	6        %	-471	-443	6        %
Income from cash & cash equivalent	67	67	0        %	236	176	34        %
Net cost of financial debt	-90	-81	11        %	-235	-267	-12        %
Other financial income and expenses	14	-168	nm	-198	-156	27        %
Income before tax	1,114	1,095	2        %	678	1,390	-51        %
Income taxes	-300	-155	94        %	-181	-176	3        %
Net income of consolidated companies	814	940	-13        %	497	1,214	-59        %
Share of profits (losses) of associates	10	6	67        %	13	7	86        %
Net Income for the period	824	946	-13        %	510	1,221	-58        %
Net income - Non controlling interests	44	15	193        %	130	31	nm
Net income - Group part	780	931	-16        %	380	1,190	-68        %

Consolidated balance sheet

Assets	September 30, 2024	December 31, 2023
(in € million)
Goodwill	224	224
Intangible assets	1,132	1,128
Flight equipment	12,607	11,501
Other property, plant and equipment	1,500	1,431
Right-of-use assets	6,652	5,956
Investments in equity associates	240	129
Pension assets	85	45
Other non-current financial assets	1,290	1,262
Non-current derivatives financial assets	115	148
Deferred tax assets	643	698
Other non-current assets	151	153
Total non-current assets	24,639	22,675
Other current financial assets	1,155	1,292
Current derivatives financial assets	46	122
Inventories	948	853
Trade receivables	2,219	2,152
Other current assets	1,261	1,120
Cash and cash equivalents	4,553	6,194
Assets held for sale	77	82
Total current assets	10,259	11,815
Total assets	34,898	34,490

Liabilities and equity	September 30, 2024	December 31, 2023
(in € million)
Issued capital	263	263
Additional paid-in capital	7,560	7,560
Treasury shares	-24	-25
Perpetual	1,065	1,076
Reserves and retained earnings	-10,585	-10,925
Equity attributable to equity holders of Air France-KLM	-1,721	-2,051
Perpetual	2,584	2,524
Reserves and retained earnings	31	27
Equity attributable Non-controlling interests	2,615	2,551
Total equity	894	500
Pension provisions	1,678	1,685
Non-current return obligation liability and other provisions	4,007	3,805
Non-current financial liabilities	7,024	7,538
Non-current lease debt	4,034	3,581
Non-current derivatives financial liabilities	86	56
Deferred tax liabilities	7	—
Other non-current liabilities	1,028	1,376
Total non-current liabilities	17,864	18,041
Current return obligation liability and other provisions	1,050	1,079
Current financial liabilities	1,577	1,664
Current lease debt	875	848
Current derivatives financial liabilities	312	139
Trade payables	2,547	2,447
Deferred revenue on ticket sales	4,345	3,858
Frequent flyer programs	886	899
Other current liabilities	4,547	5,002
Bank overdrafts	1	13
Total current liabilities	16,140	15,949
Total equity and liabilities	34,898	34,490

Statement of Consolidated Cash Flows from January 1 until September 30

Period from January 1 to September 30	2024	2023
(in € million)		restated*
Net income	510	1,221
Amortization, depreciation and operating provisions	2,037	1,839
Financial provisions	212	157
Cost of net debt	235	267
Loss (gain) on disposals of tangible and intangible assets	-31	-54
Loss (gain) on disposals of subsidiaries and associates	-2	–
Derivatives – non monetary result	19	-6
Unrealized foreign exchange gains and losses, net	-97	24
Share of (profits) losses of associates	-13	-7
Deferred taxes	99	78
Impairment	–	2
Other non-monetary items	21	-42
Cash flow from operating activities before change in working capital	2,990	3,479
(Increase) / decrease in inventories	-106	-81
(Increase) / decrease in trade receivables	-44	-491
Increase / (decrease) in trade payables	102	324
Increase / (decrease) in advanced ticket sales	476	608
Change in other assets and liabilities	-850	27
Change in working capital requirement	-422	387
CASH-FLOW FROM OPERATING ACTIVITIES	2,568	3,866
Acquisition of subsidiaries, of shares in non-controlled entities	-92	-2
Proceeds on disposal of subsidiaries, of shares in non-controlled entities	8	–
Purchase of property plant and equipment and intangible assets	-2,931	-2,280
Proceeds on disposal of property plant and equipment and intangible assets	391	276
Interest received	221	151
Dividends received	2	3
Decrease (increase) in net investments, more than 3 months	137	112
Acquisition of warrants	–	-12
CASH-FLOW USED IN INVESTING ACTIVITIES	-2,264	-1,752
Increase of equity paid by non controlling interests	–	2
Payments to acquire treasury shares	–	-1
Purchase of minority interest without change of control	-1	–
Issuance of perpetual	–	1,226
Repayment on perpetual	–	-595
Coupon on perpetual	-131	-87
Issuance of debt	1,147	1,798
Repayment on debt	-1,715	-3,116
Payments on lease debts	-666	-625
New loans	-103	-298
Repayment on loans	65	127
Interest paid	-532	-582
Dividends paid	-1	-90
CASH-FLOW FROM FINANCING ACTIVITIES	-1,937	-2,241
Effect of exchange rate and reclassification on cash and cash equivalents (net of cash acquired or sold)	4	-16
Change in cash and cash equivalents and bank overdrafts	-1,629	-143
Cash and cash equivalents and bank overdrafts at beginning of period	6,181	6,623
Cash and cash equivalents and bank overdrafts at end of period	4,552	6,480

*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities

Net debt

(in € million)	September 30, 2024	December 31, 2023
Current and non-current financial liabilities	8,601	9,202
Current and non-current lease debt	4,909	4,429
Accrued interest	-100	-138
Deposits related to financial liabilities	-100	-107
Deposits related to lease debt	-93	-100
Derivatives impact on debt	5	-1
Gross financial liabilities (I)	13,222	13,285
Cash and cash equivalent	4,553	6,194
Marketable securities > 3 months	962	1,097
Bonds	1,010	966
Bank overdrafts	-1	-13
Net cash (II)	6,524	8,244
Net debt (I-II)	6,698	5,041

Recurring adjusted operating free cash flow

	Third Quarter		Year to date
	2024	2023	2024	2023
(in € million)		restated *		restated *
Net cash flow from operating activities	918	636	2,568	3,866
Purchase of property plant and equipment and intangible assets	-864	-884	-2,931	-2,280
Proceeds on disposal of property plant and equipment and intangible assets	18	65	391	276
Operating free cash flow	72	-183	28	1,862
Exceptional payments made/(received) (1)	122	104	972	223
Interest paid and received	-81	-47	-311	-431
Payments on lease debts	-224	-204	-666	-625
Recurring adjusted operating free cash flow	-111	-330	23	1,029

*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities

^{(1) Exceptional payments made/(received), restated from operating free cash flow for the calculation of recurring operating free cash flow adjusted, correspond to the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period.}

Return on capital employed (ROCE)

In € million	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sept 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
						restated4	restated (1)	restated (1)
Goodwill and intangible assets	1,356	1,354	1,349	1,352	1,331	1,339	1,351	1,352
Flight equipment	12,607	12,197	11,646	11,501	11,296	10,957	10,954	10,614
Other property, plant and equipment	1,500	1,456	1,438	1,431	1,379	1,389	1,372	1,375
Right of use assets	6,652	6,479	5,902	5,956	5,596	5,480	5,304	5,428
Investments in equity associates	240	134	134	129	127	121	122	120
Financial assets excluding marketable securities, accrued interests and financial deposits	218	211	214	219	191	190	169	169
Provisions, excluding pension, cargo litigation and restructuring	-4,553	-4,700	-4,523	-4,346	-4,481	-4,248	-4,255	-4,347
WCR2	-7,422	-8,222	-8,284	-6,981	-7,804	-8,917	-8,696	-7,213
Capital employed	10,598	8,909	7,876	9,261	7,635	6,311	6,321	7,498
Average capital employed (A)	9,161				6,941
Adjusted results from current operations	1,148				1,902
- Dividends received	-1				-2
- Share of profits (losses) of associates	13				18
- Normative income tax	-300				-495
Adjusted result from current operations after tax (B)	860				1,423
ROCE, trailing 12 months (B/A)	9.4%				20.5%

Unit cost: net cost per ASK

	Third Quarter		Year to date
	2024	2023	2024	2023
Total operating expenses (in €m)	7,798	7,317	22,377	20,844
Carbon emission (ETS)	-66	-57	-191	-139
Total other revenues (in €m)	-795	-704	-2,320	-1,961
Net cost (in €m)	6,937	6,556	19,866	18,744
Capacity produced, reported in ASK	87,811	84,754	241,903	232,481
Net cost per ASK (in € cents per ASK)	7.90	7.74	8.21	8.06
Gross change		2.2        %		2.1        %
Currency effect on net costs (in €m)		21		-4
Change at constant currency		1.9        %		2.1        %
Fuel price effect (in €m)		-102		-208
Net cost per ASK at constant currency, constant fuel price and excluding ETS (in € cents per ASK)	7.98	7.71	8.21	7.97
Change at constant currency and constant fuel price excluding ETS		3.4        %		3.0        %

Unit cost per ASK excluding fuel and ETS vs Q3 2023: +5.3% and vs 9m 2023: +4.1%
Definition: Unit cost = (total operating expenses - fuel - carbon emission - total other revenues) / Group Capacity in ASK

Group fleet at 30 September 2024

Aircraft type	AF (incl. HOP)5	KL (incl. KLC & MP)	Transavia	Owned	Finance lease	Operating lease	Total	In operation	Change / 31/12/23
B777-300	43	16		21	14	24	59	59
B777-200	18	15		28	2	3	33	33
B787-9	10	13		4	7	12	23	23
B787-10		10		1	9		10	10
A380-800	3			2		1	3
A350-900	35			4	12	19	35	35	9
A330-300		5				5	5	5
A330-200	15	6		12		9	21	21
Total Long-Haul	124	65	0	72	44	73	189	186	9
B737-900		5		5			5	5
B737-800		31	110	36	8	97	141	141
B737-700		6	4	7		3	10	10
A321NEO		2	6	3		5	8	8	7
A321	15			8		7	15	15
A320	36			4	3	29	36	36	-1
A320NEO			6			6	6	6	6
A319	10			6		4	10	10	-3
A318	6			4		2	6	6
A220-300	37			24	2	11	37	37	5
Total Medium-Haul	104	44	126	97	13	164	274	274	14
Canadair Jet 1000	1			1			1
Embraer 195 E2		18				18	18	15	-3
Embraer 190	23	28		17	4	30	51	50
Embraer 175		17		3	14		17	17
Embraer 170	13			10		3	13	13
Total Regional	37	63	0	31	18	51	100	95	-3
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	267	176	126	204	75	290	569	561	20

2024 TRAFFIC

Passenger network activity

	Third Quarter			Year to date
Total network airlines	2024	2023	variation	2024	2023	variation
Passengers carried (‘000s)	20,499	19,836	+3.3%	56,261	54,366	+3.5%
Revenue pax-kilometers (m RPK)	65,526	63,511	+3.2%	180,744	174,778	+3.4%
Available seat-kilometers (m ASK)	73,465	71,028	+3.4%	206,270	199,689	+3.3%
Load factor (%)	89.2%	89.4%	-0.2pt	87.6%	87.5%	+0.1pt
Long-haul
Passengers carried (‘000s)	7,192	6,936	+3.7%	19,910	19,245	+3.5%
Revenue pax-kilometers (m RPK)	53,328	51,516	+3.5%	148,658	143,395	+3.7%
Available seat-kilometers (m ASK)	59,185	56,883	+4.0%	168,131	162,204	+3.7%
Load factor (%)	90.1%	90.6%	-0.5pt	88.4%	88.4%	0.0pt
North America
Passengers carried (‘000s)	2,898	2,731	+6.1%	7,367	6,975	+5.6%
Revenue pax-kilometers (m RPK)	20,394	19,270	+5.8%	52,156	49,577	+5.2%
Available seat-kilometers (m ASK)	22,647	21,278	+6.4%	59,461	56,371	+5.5%
Load factor (%)	90.1%	90.6%	-0.5pt	87.7%	87.9%	-0.2pt
Latin America
Passengers carried (‘000s)	859	878	-2.2%	2,543	2,630	-3.3%
Revenue pax-kilometers (m RPK)	8,131	8,355	-2.7%	24,168	24,978	-3.2%
Available seat-kilometers (m ASK)	8,867	8,984	-1.3%	26,710	27,476	-2.8%
Load factor (%)	91.7%	93.0%	-1.3pt	90.5%	90.9%	-0.4pt
Asia / Middle East
Passengers carried (‘000s)	1,510	1,392	+8.5%	4,530	3,877	+16.8%
Revenue pax-kilometers (m RPK)	12,119	11,017	+10.0%	35,927	30,246	+18.8%
Available seat-kilometers (m ASK)	13,400	12,244	+9.4%	40,546	34,407	+17.8%
Load factor (%)	90.4%	90.0%	+0.5pt	88.6%	87.9%	+0.7pt
Africa
Passengers carried (‘000s)	1,060	1,089	-2.7%	2,961	3,124	-5.2%
Revenue pax-kilometers (m RPK)	6,469	6,697	-3.4%	18,264	19,177	-4.8%
Available seat-kilometers (m ASK)	7,211	7,538	-4.3%	21,126	22,277	-5.2%
Load factor (%)	89.7%	88.8%	+0.9pt	86.5%	86.1%	+0.4pt
Caribbean / Indian Ocean
Passengers carried (‘000s)	866	846	+2.4%	2,509	2,639	-4.9%
Revenue pax-kilometers (m RPK)	6,214	6,177	+0.6%	18,143	19,417	-6.6%
Available seat-kilometers (m ASK)	7,060	6,839	+3.2%	20,288	21,673	-6.4%
Load factor (%)	88.0%	90.3%	-2.3pt	89.4%	89.6%	-0.2pt
Short and Medium-haul
Passengers carried (‘000s)	13,306	12,900	+3.2%	36,351	35,121	+3.5%
Revenue pax-kilometers (m RPK)	12,198	11,995	+1.7%	32,086	31,383	+2.2%
Available seat-kilometers (m ASK)	14,280	14,145	+1.0%	38,139	37,485	+1.7%
Load factor (%)	85.4%	84.8%	+0.6pt	84.1%	83.7%	+0.4pt

Transavia activity

	Third quarter			Year to date
Transavia	2024	2023	variation	2024	2023	variation
Passengers carried (‘000s)	7,356	7,068	+4.1%	18,208	16,853	+8.0%
Revenue seat-kilometers (m RSK)	12,841	12,502	+2.7%	31,826	29,637	+7.4%
Available seat-kilometers (m ASK)	14,330	13,716	+4.5%	35,591	32,753	+8.7%
Load factor (%)	89.6%	91.2%	-1.5pt	89.4%	90.5%	-1.1pt

Total Group passenger activity

	Third quarter			Year to date
Total Group	2024	2023	variation	2024	2023	variation
Passengers carried (‘000s)	27,855	26,904	+3.5%	74,470	71,218	+4.6%
Revenue pax-kilometers (m RPK)	78,367	76,013	+3.1%	212,570	204,415	+4.0%
Available seat-kilometers (m ASK)	87,795	84,744	+3.6%	241,861	232,442	+4.1%
Load factor (%)	89.3%	89.7%	-0.4pt	87.9%	87.9%	-0.1pt

Cargo activity

	Third quarter			Year to date
Cargo	2024	2023	variation	2024	2023	variation
Revenue tonne-km (m RTK)	1,687	1,636	+3.1%	4,936	4,779	+3.3%
Available tonne-km (m ATK)	3,707	3,654	+1.5%	10,724	10,501	+2.1%
Load factor (%)	45.5%	44.8%	+0.7pt	46.0%	45.5%	+0.5pt

Air France activity

	Third quarter			Year to date
Total Passenger network activity	2024	2023	variation	2024	2023	variation
Passengers carried (‘000s)	11,670	11,455	+1.9%	31,502	31,744	-0.8%
Revenue pax-kilometers (m RPK)	40,441	38,677	+4.6%	108,966	105,074	+3.7%
Available seat-kilometers (m ASK)	45,788	43,366	+5.6%	125,000	120,074	+4.1%
Load factor (%)	88.3%	89.2%	-0.9pt	87.2%	87.5%	-0.3pt
Long-haul
Passengers carried (‘000s)	4,671	4,382	+6.6%	12,625	11,967	+5.5%
Revenue pax-kilometers (m RPK)	33,789	31,854	+6.1%	91,950	87,001	+5.7%
Available seat-kilometers (m ASK)	37,859	35,352	+7.1%	104,630	98,517	+6.2%
Load factor (%)	89.2%	90.1%	-0.9pt	87.9%	88.3%	-0.4pt
Short and Medium-haul
Passengers carried (‘000s)	6,999	7,073	-1.1%	18,877	19,778	-4.6%
Revenue pax-kilometers (m RPK)	6,652	6,823	-2.5%	17,016	18,073	-5.8%
Available seat-kilometers (m ASK)	7,929	8,014	-1.1%	20,371	21,556	-5.5%
Load factor (%)	83.9%	85.1%	-1.2pt	83.5%	83.8%	-0.3pt
Cargo activity
Revenue tonne-km (m RTK)	839	818	+2.5%	2,445	2,397	+2.0%
Available tonne-km (m ATK)	2,190	2,101	+4.2%	6,210	5,940	+4.6%
Load factor (%)	38.3%	39.0%	-0.7pt	39.4%	40.4%	-1.0pt

KLM activity

	Third quarter			Year to date
Total Passenger network activity	2024	2023	variation	2024	2023	variation
Passengers carried (‘000s)	8,829	8,380	+5.4%	24,759	22,621	+9.5%
Revenue pax-kilometers (m RPK)	25,084	24,836	+1.0%	71,777	69,705	+3.0%
Available seat-kilometers (m ASK)	27,677	27,660	+0.1%	81,271	79,614	+2.1%
Load factor (%)	90.6%	89.8%	+0.8pt	88.3%	87.6%	+0.8pt
Long-haul
Passengers carried (‘000s)	2,522	2,554	-1.3%	7,285	7,278	+0.1%
Revenue pax-kilometers (m RPK)	19,538	19,664	-0.6%	56,708	56,395	+0.6%
Available seat-kilometers (m ASK)	21,326	21,529	-0.9%	63,502	63,686	-0.3%
Load factor (%)	91.6%	91.3%	+0.3pt	89.3%	88.6%	+0.7pt
Short and Medium-haul
Passengers carried (‘000s)	6,307	5,827	+8.3%	17,474	15,343	+13.9%
Revenue pax-kilometers (m RPK)	5,546	5,172	+7.2%	15,070	13,310	+13.2%
Available seat-kilometers (m ASK)	6,352	6,131	+3.6%	17,769	15,928	+11.6%
Load factor (%)	87.3%	84.4%	+3.0pt	84.8%	83.6%	+1.2pt
Cargo activity
Revenue tonne-km (m RTK)	848	818	+3.8%	2,491	2,382	+4.6%
Available tonne-km (m ATK)	1,517	1,553	-2.3%	4,514	4,561	-1.0%
Load factor (%)	55.9%	52.6%	+3.3pt	55.2%	52.2%	+3.0pt

---

1 at constant fuel, constant currency and excluding ETS
¹ One A380 which was phased out from operation in 2020, was sold this quarter 2New generation fleet / Fleet in operation
3 against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)
1 ^{Compared with previous periods, working capital has been restated to exclude the deferral of social and fiscal charges granted following the Covid.}
2 ^{Excluding the report of social & fiscal charges granted consequently to Covid.}
5 Excluding Transavia

Attachment

• Q3 2024 - AFKLM - Press release