Q2 2023 Financial Results
xx
July 28, 2023
|
Strong Q2 Operating Margin at 9.6%
Positive adjusted operating free cash flow at €0.6
billion |
-
Group capacity at 92% compared to 2019 with load factor at 88%
-
Group revenues at €7.6bn, an improvement of €0.9bn compared to last
year
-
Operating result at €0.7bn with an operating margin at 9.6%
-
Positive adjusted operating free cash flow at €0.6bn and cash at
hand at €10bn
-
Net debt down by €1.4bn euros, compared to end of 2022 leading to a
Net debt/EBITDA ratio of 1.2x
-
Net income at €0.6bn supporting equity restoration
-
Post quarter, €0.5bn quasi-equity financing for Air France’s
Engineering and Maintenance (MRO) components activity
Commenting on the results, Mr. Benjamin
Smith, Group CEO, said:
“We have again delivered a strong set of results
during the Second Quarter of 2023. In spite of the inflationary
context, we posted double-digit growth in our revenues and a record
operating margin. The rollout of new award-winning products across
our airlines continued unabated, which serves as a testament of the
commitment of our employees, whom I would like to thank. We
were also busy throughout the quarter, actively preparing for the
summer. I am very glad to see that the situation at airports is
much better, including at KLM’s hub at Amsterdam Schiphol Airport.
This season notably serves as a test run for 2024, when France will
host the Olympic and Paralympic Games, of which Air France is an
official partner. Lastly, we have also continued delivering on our
strategic roadmap, and secured ambitious partnerships in the field
of sustainability, preparing for our medium to long-term
future.”
Operating result improved compared to 2022 driven by
strong revenue growth
| |
Current quarter |
Year to date |
|
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Revenues (€m) |
7,624 |
+13.7 % |
+14.1% |
13,953 |
+25.1 % |
+24.8% |
| EBITDA (€m) |
1,328 |
397 |
405 |
1,614 |
462 |
488 |
| Operating result
(€m) |
733 |
347 |
355 |
426 |
390 |
418 |
| Operating margin
(%) |
9.6 % |
+3.9pt |
+4.0pt |
3.1 % |
+2.7pt |
+3.0pt |
| Net income –
Group part (€m) |
604 |
280 |
|
260 |
488 |
|
|
Adj. operating free cash flow (€m) |
557 |
(975) |
|
1,240 |
(923) |
|
|
|
30 June 2023 |
31 Dec 2022 |
|
Net Debt |
4,900 |
6,337 |
| EBITDA trailing
12 months |
4,077 |
3,615 |
|
Net Debt/EBITDA ratio |
1.2x |
1.8x |
In Q2 2023, revenues were up +14.1% compared to
Q2 2022, driven by a higher capacity (+8%), a higher passenger load
factor (+3 pt) and a higher passenger yield (+9%). The operating
result improved compared to last year by €347 million while last
year the operating result was supported by €42 million furlough
contribution. A lower jet fuel price and a higher yield
compensating inflation accelerated the growth in operating result
and translated into a margin at 9.6%.
As a result, compared to last year, net income
strongly grew by €280 million, amounting to €604 million,
supporting the equity restoration.
The adjusted operating free cash flow in the
second quarter amounted to €557 million, a reduction of €975
million compared to last year. This different pattern is explained
by a catch up in summer ticket sales in Q2 2022. The net debt ended
at €4.9 billion, an improvement compared to year end 2022 of €1.4
billion.
Increase in Group unit revenue driven by passenger unit
revenue
| |
Current quarter |
Year to date |
|
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Passengers (thousands) |
24,664 |
+8.2% |
|
44,315 |
+18.7% |
|
| Capacity (ASK
m) |
78,144 |
+8.3% |
|
147,727 |
+13.5% |
|
| Traffic (RPK
m) |
68,498 |
+11.6% |
|
128,418 |
+22.9% |
|
| Passenger load
factor |
87.7% |
+2.6pt |
|
86.9% |
+6.7pt |
|
| Passenger unit
revenue per ASK (€ cts) |
8.32 |
+12.3% |
+12.6% |
7.87 |
+21.0% |
+20.7% |
| Group unit
revenue per ASK (€ cts) |
8.94 |
+4.9% |
+5.4% |
8.59 |
+11.1% |
+10.9% |
|
Group unit cost per ASK (€ cts) at constant fuel1 |
8.00 |
+0.2% |
+6.4% |
8.31 |
+7.8% |
+5.9% |
In the second quarter 2023, Air France-KLM
welcomed 24.7 million passengers which is 8.2% above previous year.
As capacity increased by 8.3% and traffic grew by 11.6%, the load
factor increased by 2.6 points compared to last year.
The Group reached a very strong group passenger
unit revenue per ASK, up +12.3% compared to last year. This
increase was driven by load factor increase especially on the long
haul network (North America, Africa, Asia & Middle East and
Transavia) and yield on the full network except Asia.
Group unit cost per ASK at constant fuel and
constant currency is up 6.4% versus last year (5.6% excluding
furlough). The inflation related to salary increases started last
year in the third quarter and especially in the fourth quarter. The
increase in the second quarter is mainly coming from higher
salaries including profit sharing, but also from an increase in ATC
charges, airport charges, ETS and higher cost due to a higher load
factor.
Equity restoration
Air France-KLM and Apollo Global Management
announced post-quarter that they have signed a definitive agreement
for Apollo-managed funds and entities (“Apollo”) to raise a €500
million financing into an operating affiliate of Air France that
will own a pool of components dedicated to Air France’s Engineering
and Maintenance activities.
Under this agreement and subject to customary
closing conditions, Apollo will subscribe to perpetual bonds issued
by this ad hoc operating affiliate and this financing will be
accounted as equity under IFRS. The financing’s proceeds will be
allocated to general corporate purposes and support future
components expenditures related to the maintenance activity.
The perpetual bonds will bear an interest rate
of 6.9% for the first 3 years and gradual step ups and caps will be
applied thereafter. Air France will have the ability to redeem them
at any time after 3 years.
On July 27, 2023, Air France-KLM announced that
it has entered into exclusive discussions with Apollo Global
Management regarding the potential financing of €1.5bn to a
dedicated operating affiliate of Air France-KLM. This entity will
hold the trademark and most of the commercial partner contracts
related to Air France and KLM’s joint loyalty program (Flying
Blue), and will become the exclusive issuer of miles for the
airlines and partners.
This financing would be accounted as equity
under IFRS, allowing Air France-KLM to make a further step towards
its commitment to restore its equity and strengthen its balance
sheet, aside from net profit generation and/or straight hybrid
bonds.
OUTLOOK
Capacity
The Group expects the capacity in Available Seat
Kilometers for Air France-KLM Group including Transavia at an index
of:
-
Circa 95% for the third quarter of 2023
-
Above 95% for the fourth quarter of 2023
-
Circa 95% for the Full Year 2023
All indices compared to the respective period of
2019.
Unit cost2
Due to the inflationary pressure, mainly driven
by CLA increases, profit sharing, load factor impact and a decrease
in the forecasted capacity, the Group expects from now on for 2023
a low single digit increase of the unit cost increase compared to
2022.
Capex
Full year 2023 net capex is estimated at 3.0
billion euros.
MEDIUM TERM OUTLOOK3
The Group continues its swift transformation
initiatives and confirms its medium-term financial ambition with
the long-term focus of achieving increased competitiveness. To do
this, the Group remains agile in optimizing fleet, workforce,
network, costs and continues its sustainability efforts. The Group
expects capacity in Available Seat Kilometers back to 2019 levels
as from 2024.
The transformation efforts of the Group,
including FTE reduction, fleet renewal and spend optimization, will
compensate the inflationary pressure on cost. Therefore, the Group
expects to decrease its unit cost in the period 2024-2026 year over
year against a constant fuel price, constant currency and excluding
Emission Trading Scheme costs (ETS).
The Adjusted Operating Free Cash Flow excluding
exceptionals is expected to remain positive. Exceptionals include
the payment of the air-freight litigation and the deferrals of
social charges, pensions and wage taxes accumulated during the
Covid 19 period.
The Net Debt/EBITDA target ratio is expected to
remain between 1.5x and 2.0x.
The Group’s medium-term financial ambition is to
reach an Operating Margin of 7% to 8%.
Business review
Network: Operating result more than doubled
|
Network |
Current quarter |
Year to date |
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Traffic revenues (€m) |
6,257 |
+13.1% |
+13.6% |
11,585 |
+25.8% |
+25.6% |
| Total revenues
(€m) |
6,520 |
+13.3% |
+13.8% |
12,095 |
+25.4% |
+25.2% |
| Operating result
(€m) |
692 |
+340 |
+342 |
542 |
+499 |
+519 |
|
Operating margin (%) |
10.6% |
4.5 pt |
|
4.5% |
4.0 pt |
|
Compared to the second quarter 2022, total
revenues increased by +13.3% to €6,520 million. The operating
result improved by €340 million and amounted to €692 million. The
increase in revenues was driven by the network passenger business
while the Cargo revenues declined compared to a strong second
quarter last year and a further softening of the market.
Robust growth in unit revenue
|
Passenger network |
Current quarter |
Year to date |
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Passengers (thousands) |
18,743 |
+6.8% |
|
34,530 |
+17.1% |
|
| Capacity (ASK
m) |
66,714 |
+8.1% |
|
128,690 |
+12.6% |
|
| Traffic (RPK
m) |
58,319 |
+11.1% |
|
111,284 |
+21.8% |
|
| Load factor |
87.4% |
2.4pt |
|
86.5% |
6.5pt |
|
| Total passenger
revenues (€m) |
5,913 |
+22.3% |
+22.6% |
10,816 |
+38.3% |
+38.0% |
| Traffic passenger
revenues (€m) |
5,770 |
+21.9% |
+22.3% |
10,522 |
+38.3% |
+37.9% |
|
Unit revenue per ASK (€ cts) |
8.65 |
+12.8% |
+13.1% |
8.18 |
+22.8% |
+22.4% |
Second quarter 2023 capacity in Available Seat
Kilometers (ASK) was 8.1% higher than last year and at 88% of 2019
level, which is in line with the Group’s guidance provided during
the first quarter 2023 results presentation (c.90% versus
2019).
Unit revenue per ASK increased by 13.1% at a
constant currency thanks to strong demand which resulted in an
increase in load factor of 2.4 points and a yield increase of 10%
compared to last year at constant currency.
During the second quarter we observed per area
the following trends:
North AtlanticDemand recovery continued to be
driven by Point of Origin North America. Yield increased by 13% at
a slightly higher capacity of 2% while the load factor increased 4
points compared to last year.
Latin AmericaVery strong yield performance, 12%
up compared to 2022, mainly driven by strong yields close in.
Asia & Middle EastCapacity in the second
quarter has significantly increased vs 2022 by 56%, mainly driven
by China’s reopening. Nevertheless, this is still -34% below 2019
levels. Yields are stable compared to 2022 which is lower than the
other areas, but this is mainly driven by the exceptional yields in
2022 due to the low capacity.
Caribbean & Indian OceanThe second quarter
showed significant capacity reductions compared to 2022 (-16%) due
to redeployment of fleet to other long haul areas. The reduction in
capacity resulted in very good performance on yield, 22% up versus
2022.
AfricaStrong traffic dynamics
with load factor up 3 points compared to 2022. Robust yield at 6%
above 2022.
Short and Medium-haulIn April the domestic
network was impacted by ATC strikes. Yield improved by 10% compared
to last year while capacity grew 4%. Load factor slightly up by 1
point.
Cargo: demand continued to soften resulting in pressure
on unit revenues
|
Cargo business |
Current quarter |
Year to date |
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Tons (thousands) |
213 |
-10.0% |
|
421 |
-10.8% |
|
| Capacity (ATK
m) |
3,557 |
+6.5% |
|
6,845 |
+8.4% |
|
| Traffic (RTK
m) |
1,585 |
-8.5% |
|
3,143 |
-10.2% |
|
| Load factor |
44.6% |
-7.3pt |
|
45.9% |
-9.5pt |
|
| Total Cargo
revenues (€m) |
606 |
-33.9% |
-33.0% |
1,279 |
-30.0% |
-29.7% |
| Traffic Cargo
revenues (€m) |
487 |
-39.1% |
-38.4% |
1,063 |
-33.4% |
-33.1% |
|
Unit revenue per ATK (€ cts) |
13.70 |
-42.8% |
-42.1% |
15.53 |
-38.6% |
-38.3% |
Total revenues dropped by -33.9% compared to
last year. The resumption of the passenger travel resulted in an
increase in Available Ton Kilometers of 6.5% versus the second
quarter of 2022. Last year, the second quarter still showed a
strong demand and therefore the traffic decreased year over year by
-8.5%. As global economic growth is slowing down, container prices
for sea freight declined and therefore demand for air cargo
softened. The load factor was 7.3 points below 2022 and due to the
increased belly capacity, the yield declined as well resulting in a
decrease in unit revenue per Available Ton Kilometer of -42.1%
against a constant currency.
Transavia: Encouraging unit revenue development
resulting in a break-even result
|
Transavia |
Current quarter |
Year to date |
|
2023 |
change |
2023 |
change |
|
Passengers (thousands) |
5,921 |
+12.8% |
9,785 |
+25.0% |
| Capacity (ASK
m) |
11,429 |
+9.6% |
19,037 |
+19.5% |
| Traffic (RPK
m) |
10,179 |
+14.5% |
17,134 |
+30.3% |
| Load factor |
89.1% |
+3.9pt |
90.0% |
+7.4pt |
| Total Passenger
revenues (€m) |
712 |
+18.4% |
1,089 |
+28.2% |
| Unit revenue per
ASK (€ cts) |
6.38 |
+8.8% |
5.83 |
+7.6% |
| Unit cost per ASK
(€ cts) |
6.38 |
+5.6% |
6.73 |
+10.2% |
|
Operating result (€m) |
0 |
+18 |
-172 |
-62 |
Compared to the second quarter 2022, the demand
in leisure traffic continued to grow, despite operational
disruptions due to ATC strikes in France and fleet issues in the
Netherlands. The capacity increased by 9.6%, traffic increased by
14.5%, and the number of passengers increased by 12.8% resulting in
a load factor 3.9 points above 2022. Transavia is still expanding
its network, with a capacity growth in available seat kilometers of
+20% compared to 2019 and the routes are yet to mature further.
Transavia was able to improve further in the second quarter to a
break-even operating result, which is promising for the Q3 peak
season for which strong bookings are already visible.
Maintenance business: continued growth on third party
revenues despite supply chain
|
Maintenance |
Current quarter |
Year to date |
|
2023 |
change |
changeconstant currency |
2023 |
change |
changeconstant currency |
|
Total revenues (€m) |
1,055 |
+15.8% |
|
1,981 |
+13.7% |
|
| Third party
revenues (€m) |
384 |
+11.3% |
+12.0% |
753 |
+17.3% |
+14.2% |
| Operating result
(€m) |
46 |
-11 |
-10 |
62 |
-39 |
-42 |
|
Operating margin (%) |
4.4% |
-1.9pt |
-1.8pt |
3.1% |
-2.7pt |
-2.8pt |
Total revenues increased by 15.8% compared with
the same quarter last year while third party revenues increased by
12.0% at constant currency, showing a robust recovery. Due to the
tight labour market and supply chain disruptions, the average time
for maintenance increased, resulting in less growth opportunities
for third party revenues impacting the profitability. The operating
margin in the second quarter stood at 4.4%, which is 1.9 points
lower than in 2022.
Fleet
Compared to the end of 2022 the group added
three B787-10, fifteen B737-800, nine A220-300 and two Embraer
195-E2. The following aircraft left the fleet, three B737-700, two
A321, four A319 and two CRJ-1000, as a result the fleet increased
by eighteen aircraft.
The Group will continue to invest in new
generation aircraft in order to improve its economic performance
and will decrease its C02 emission and reduce noise.
Acceleration in revenue generation for both
airlines
Air France Group
|
|
Current quarter |
Year to date |
|
2023 |
change |
2023 |
change |
|
Revenue (in €m) |
4,667 |
+14.9% |
8,591 |
+27.4% |
| EBITDA (in
€m) |
845 |
+400 |
1,058 |
+637 |
| Operating result
(in €m) |
482 |
+349 |
301 |
+531 |
|
Operating margin (%) |
10.3% |
+7.1pt |
3.5% |
+6.9pt |
Air France performance is stemming from a strong
performance of long-haul and a high load factor resulting in an
increase of revenue of +14.9%. Operating result up +349 million
euros compared to last year.
KLM Group
|
|
Current quarter |
Year-to-date |
|
2023 |
change |
2023 |
change |
|
Revenue (in €m) |
3,111 |
+11.8% |
5,632 |
+20.2% |
| EBITDA (in
€m) |
489 |
-6 |
559 |
-171 |
| Operating result
(in €m) |
257 |
-5 |
129 |
-136 |
|
Operating margin (%) |
8.3% |
-1.2pt |
2.3% |
-3.4pt |
KLM operations stabilized despite supply chain,
tight labor market and fleet issues at KLM Cityhopper and Transavia
the Netherlands. Revenue grew by +11.8% compared to last year.
Nb: Sum of individual airline results does not
add up to AF-KLM total due to intercompany eliminations at Group
level.
******
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 28, 2023 from 7:15 am
CET.
A conference call hosted by Mr. Smith (CEO) and
Mr. Zaat (CFO) will be held on July 28, 2023 at 08.30 am CET.
To connect to the webcast, please use below
link:
https://channel.royalcast.com/landingpage/airfranceklm/20230728_2/
|
Investor Relations |
|
Press |
|
Michiel Klinkers |
Marouane Mami |
+33 1 41 56 56 00 |
|
Michiel.klinkers@airfranceklm.com |
mamami@airfranceklm.com |
|
Income statement
| |
Current Quarter |
Year to Date |
| in € million |
2023 |
2022 |
Variation |
2023 |
2022 |
Variation |
| |
|
restated * |
|
|
restated * |
|
|
Revenues from ordinary activities |
7,624 |
6,707 |
14% |
13,953 |
11,152 |
25 % |
|
Aircraft fuel |
(1,662) |
(1,863) |
-11 % |
(3,442) |
(2,858) |
20 % |
| Carbon
emission |
(50) |
(15) |
233 % |
(81) |
(27) |
200 % |
| Chartering
costs |
(153) |
(93) |
65 % |
(243) |
(193) |
26 % |
| Landing fees and
air routes charges |
(506) |
(436) |
16 % |
(919) |
(784) |
17 % |
| Catering |
(207) |
(176) |
18 % |
(393) |
(319) |
23 % |
| Handling charges
and other operating costs |
(468) |
(401) |
17 % |
(894) |
(722) |
24 % |
| Aircraft
maintenance costs |
(597) |
(603) |
-1 % |
(1,245) |
(1,118) |
11 % |
| Commercial and
distribution costs |
(259) |
(230) |
13 % |
(516) |
(384) |
34% |
| Other external
expenses |
(458) |
(368) |
24 % |
(916) |
(702) |
30 % |
| Salaries and
related costs |
(2,156) |
(1,820) |
18 % |
(4,164) |
(3,343) |
25 % |
| Taxes other than
income taxes |
(38) |
(34) |
12 % |
(93) |
(80) |
16 % |
| Other income and
expenses |
258 |
263 |
-2 % |
567 |
530 |
7 % |
|
EBITDA |
1,328 |
931 |
43% |
1,614 |
1,152 |
40% |
|
Amortization, depreciation and provisions |
(595) |
(545) |
9 % |
(1,188) |
(1,116) |
6 % |
|
Income from current operations |
733 |
386 |
90 % |
426 |
36 |
nm |
|
Sales of aircraft equipment |
23 |
39 |
-41 % |
28 |
39 |
-28 % |
|
Other non-current income and expenses |
17 |
(10) |
nm |
15 |
(15) |
nm |
|
Income from operating activities |
773 |
415 |
86% |
469 |
60 |
nm |
|
Cost of financial debt |
(138) |
(136) |
1 % |
(296) |
(277) |
7 % |
|
Income from cash & cash equivalent |
59 |
1 |
nm |
108 |
– |
nm |
|
Net cost of financial debt |
(79) |
(135) |
-41 % |
(188) |
(277) |
-32 % |
|
Other financial income and expenses |
(22) |
(238) |
-91 % |
14 |
(286) |
nm |
|
Income before tax |
672 |
42 |
nm |
295 |
(503) |
nm |
|
Income taxes |
(61) |
283 |
nm |
(21) |
278 |
nm |
|
Net income of consolidated companies |
611 |
325 |
88% |
274 |
(225) |
nm |
|
Share of profits (losses) of associates |
1 |
– |
nm |
1 |
(1) |
nm |
|
Net Income for the period |
612 |
325 |
88% |
275 |
(226) |
nm |
|
Non-controlling interests |
8 |
1 |
nm |
15 |
2 |
nm |
|
Net Income for the period - Equity holders |
604 |
324 |
86% |
260 |
(228) |
nm |
* Restated figures include the change in accounting principles
for CO2 quotas
Consolidated balance sheet
|
Assets |
June 30, 2023 |
December 31, 2022 |
|
(in € million) |
|
restated * |
|
Goodwill |
225 |
225 |
| Intangible
assets |
1,114 |
1,127 |
| Flight
equipment |
10,957 |
10,614 |
| Other property,
plant and equipment |
1,389 |
1,375 |
| Right-of-use
assets |
5,480 |
5,428 |
| Investments in
equity associates |
121 |
120 |
| Pension
assets |
83 |
39 |
| Other non-current
financial assets |
1,443 |
1,184 |
| Non-current
derivative financial assets |
159 |
262 |
| Deferred tax
assets |
714 |
714 |
|
Other non-current assets |
76 |
78 |
|
Total non-current assets |
21,761 |
21,166 |
|
Other current financial assets |
621 |
620 |
| Current
derivative financial assets |
214 |
327 |
| Inventories |
754 |
723 |
| Trade
receivables |
1,983 |
1,785 |
| Other current
assets |
1,132 |
979 |
| Cash and cash
equivalents |
6,169 |
6,626 |
|
Assets held for sale |
82 |
79 |
|
Total current assets |
10,955 |
11,139 |
|
Total assets |
32,716 |
32,305 |
* Restated figures include the change in accounting principles
for CO2 quotas
| Liabilities
and equity |
June 30, 2023 |
December 31, 2022 |
|
(in € million) |
|
|
|
Issued capital |
2,571 |
2,571 |
| Additional
paid-in capital |
5,217 |
5,217 |
| Treasury
shares |
(25) |
(25) |
| Perpetual |
1,048 |
933 |
|
Reserves and retained earnings |
(11,582) |
(11,700) |
|
Equity attributable to equity holders of Air
France-KLM |
(2,771) |
(3,004) |
|
Perpetual |
524 |
510 |
|
Reserves and retained earnings |
16 |
14 |
|
Equity attributable Non-controlling interests |
540 |
524 |
|
Total equity |
(2,231) |
(2,480) |
|
Pension provisions |
1,661 |
1,634 |
| Non-current
return obligation liabilities and provisions for leased aircrafts
and other provisions |
3,885 |
4,149 |
| Non-current
financial liabilities |
8,225 |
9,657 |
| Non-current lease
debt |
3,227 |
3,318 |
| Non-current
derivative financial liabilities |
39 |
21 |
| Deferred tax
liabilities |
9 |
1 |
|
Other non-current liabilities |
1,696 |
2,343 |
|
Total non-current liabilities |
18,742 |
21,123 |
|
Current return obligation liabilities and provisions for leased
aircrafts and other provisions |
847 |
740 |
| Current financial
liabilities |
675 |
896 |
| Current lease
debt |
819 |
834 |
| Current
derivative financial liabilities |
143 |
83 |
| Trade
payables |
2,576 |
2,424 |
| Deferred revenue
on ticket sales |
5,500 |
3,725 |
| Frequent flyer
programs |
884 |
900 |
| Other current
liabilities |
4,755 |
4,057 |
|
Bank overdrafts |
6 |
3 |
|
Total current liabilities |
16,205 |
13,662 |
|
Total liabilities |
34,947 |
34,785 |
|
Total equity and liabilities |
32,716 |
32,305 |
Statement of Consolidated Cash Flows from January 1
until June 30
| Period
from January 1 to June 30 |
2023 |
2022 |
|
(in € million) |
|
restated * |
|
Net income |
275 |
(226) |
| Amortization,
depreciation and operating provisions |
1,188 |
1,116 |
| Financial
provisions |
100 |
69 |
| Loss (gain) on
disposals of tangible and intangible assets |
(49) |
(40) |
| Derivatives – non
monetary result |
(5) |
(20) |
| Unrealized
foreign exchange gains and losses, net |
(73) |
240 |
| Share of
(profits) losses of associates |
(1) |
1 |
| Deferred
taxes |
19 |
(282) |
| Impairment |
2 |
17 |
|
Other non-monetary items |
(152) |
(117) |
|
Financial capacity |
1,304 |
758 |
|
(Increase) / decrease in inventories |
(33) |
(79) |
| (Increase) /
decrease in trade receivables |
(167) |
(437) |
| Increase /
(decrease) in trade payables |
115 |
971 |
| Increase /
(decrease) in advanced ticket sales |
1,757 |
2,276 |
|
Change in other assets and liabilities |
(130) |
97 |
|
Change in working capital requirement |
1,542 |
2,828 |
|
Net cash flow from operating activities |
2,846 |
3,586 |
|
Acquisition of subsidiaries, of shares in non-controlled
entities |
(2) |
– |
| Purchase of
property plant and equipment and intangible assets |
(1,396) |
(1,457) |
| Proceeds on
disposal of property plant and equipment and intangible assets |
211 |
476 |
| Dividends
received |
2 |
1 |
| Decrease
(increase) in net investments, more than 3 months |
(52) |
6 |
|
Net cash flow used in investing activities |
(1,237) |
(974) |
|
Increase of equity |
– |
1,551 |
| Payments to
acquire treasury shares |
(1) |
– |
| Issuance of
perpetual |
728 |
– |
| Repayment on
perpetual |
(595) |
(993) |
| Coupons on
perpetual |
(52) |
(229) |
| Issuance of
debt |
1,558 |
552 |
| Repayment on
debt |
(2,969) |
(1,415) |
| Payments on lease
debts |
(421) |
(442) |
| New loans |
(306) |
(175) |
| Repayment on
loans |
104 |
16 |
| Dividends
paid |
(90) |
– |
|
Net cash flow from financing activities |
(2,044) |
(1,135) |
|
Effect of exchange rate on cash and cash equivalents and bank
overdrafts (net of cash acquired or sold) |
(25) |
40 |
|
Change in cash and cash equivalents and bank
overdrafts |
(460) |
1,517 |
|
Cash and cash equivalents and bank overdrafts at beginning of
period |
6,623 |
6,654 |
|
Cash and cash equivalents and bank overdrafts at end of period |
6,163 |
8,171 |
* Restated figures include the change in accounting principles
for CO2 quotas
Return on capital employed (ROCE)
| In € million |
Jun 30,2023 |
Mar 31,2023 |
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
Sep 30,2021 |
|
|
|
|
restated * |
restated * |
restated * |
restated * |
restated * |
restated * |
|
Goodwill and intangible assets |
1,339 |
1,351 |
1,352 |
1,350 |
1 361 |
1 363 |
1 380 |
1 384 |
|
Flight equipment |
10,957 |
10,954 |
10,614 |
10,298 |
10 521 |
10 537 |
10 466 |
10 478 |
|
Other property, plant and equipment |
1,389 |
1,372 |
1,375 |
1,349 |
1 358 |
1 378 |
1 402 |
1 418 |
|
Right of use assets |
5,480 |
5,304 |
5,428 |
5,536 |
5 439 |
5 205 |
5 148 |
5 061 |
|
Investments in equity associates |
121 |
122 |
120 |
111 |
108 |
107 |
109 |
172 |
|
Financial assets excluding marketable securities and financial
deposits |
190 |
169 |
169 |
164 |
162 |
158 |
157 |
147 |
|
Provisions, excluding pension, cargo litigation and
restructuring |
(4,248) |
(4,255) |
(4,347) |
(4,792) |
(4 473) |
(4 240) |
(4 180) |
(4 180) |
|
WCR, excluding market value of derivatives |
(11,467) |
(11,313) |
(9,882) |
(10,359) |
(11 080) |
(9 480) |
(8 185) |
(7 923) |
|
Capital employed |
3,761 |
3,704 |
4,829 |
3,657 |
3 396 |
5 028 |
6 297 |
6 557 |
|
Average capital employed (A) |
3,988 |
5,320 |
|
Adjusted results from current operations |
1,584 |
344 |
|
- Dividends received |
(2) |
– |
|
- Share of profits (losses) of associates |
15 |
(12) |
|
- Normative income tax |
(412) |
(80) |
|
Adjusted result from current operations after tax
(B) |
1,185 |
252 |
|
ROCE, trailing 12 months (B/A) |
29.7% |
4,7% |
* Restated figures include the change in accounting principles
for CO2 quotas
The ROCE is positively impacted by high working
capital due to payment deferral of social charges and salary
taxes.
Net debt
|
(in € million) |
June 30, 2023 |
December 31, 2022 |
|
Current and non-current financial liabilities |
8,900 |
10,553 |
| Current and
non-current lease debt |
4,046 |
4,152 |
| Accrued
interest |
(55) |
(127) |
| Deposits related
to financial liabilities |
(102) |
(101) |
| Deposits related
to lease debt |
(100) |
(99) |
|
Derivatives impact on debt |
(15) |
(35) |
|
Gross financial liabilities (I) |
12,674 |
14,343 |
|
Cash and cash equivalents |
6,169 |
6,626 |
| Marketable
securities > 3 months |
624 |
572 |
| Bonds |
987 |
811 |
|
Bank overdrafts |
(6) |
(3) |
|
Net cash (II) |
7,774 |
8,006 |
|
Net debt (I-II) |
4,900 |
6,337 |
Adjusted operating free cash flow
| |
Current Quarter |
Year to Date |
| |
2023 |
2022 |
2023 |
2022 |
|
(in € million) |
|
restated * |
|
restated * |
|
Net cash flow from operating activities |
1,296 |
2,237 |
2,846 |
3,586 |
| Purchase of
property plant and equipment and intangible assets |
(617) |
(785) |
(1,396) |
(1,457) |
| Proceeds on
disposal of property plant and equipment and intangible assets |
80 |
305 |
211 |
476 |
|
Operating free cash flow |
759 |
1,757 |
1,661 |
2,605 |
|
Payments on lease debts |
(202) |
(225) |
(421) |
(442) |
|
Operating free cash flow adjusted |
557 |
1,532 |
1,240 |
2,163 |
* Restated figures include the change in accounting principles
for CO2 quotas
Bridge from EBITDA to Self-financing
capacity
| |
Current Quarter |
Year to Date |
| |
2023 |
2022 |
2023 |
2022 |
|
(in € million) |
|
restated * |
|
restated * |
|
EBITDA |
1,328 |
931 |
1,614 |
1,152 |
|
Provisions (risk and other) |
(1) |
(13) |
(9) |
(13) |
| Correction of
spare parts inventory |
2 |
1 |
2 |
3 |
| Addition to
pension provisions |
38 |
33 |
71 |
65 |
| Reversal to
pension provisions (cash-out) |
(17) |
(19) |
(31) |
(32) |
|
Sales of tangible and intangible assets (excluding
aeronauticals) |
– |
1 |
(2) |
1 |
|
Income from operating activities - cash
impact |
1,350 |
934 |
1,645 |
1,176 |
|
Restructuring costs |
(31) |
(68) |
(66) |
(125) |
| Other non-current
income and expenses |
(1) |
– |
(3) |
(2) |
| Cost of financial
liability |
(139) |
(139) |
(402) |
(283) |
| Financial
income |
54 |
(3) |
98 |
(8) |
| Realized foreign
exchanges gain/loss |
2 |
(11) |
40 |
3 |
| Settlement of
forwards derivatives - cash |
(1) |
– |
(1) |
– |
| Other financial
charges & expenses - cash |
(4) |
– |
(4) |
– |
| Current income
tax |
(4) |
– |
(2) |
(4) |
|
Other elements |
(2) |
– |
(1) |
1 |
|
Self-financing capacity |
1,224 |
713 |
1,304 |
758 |
* Restated figures include the change in accounting principles
for CO2 quotas
Unit cost: net cost per ASK
| |
Current Quarter |
Year to date |
| |
2023 |
2022 |
2023 |
2022 |
| Total operating
expenses (in €m) |
6,891 |
6,321 |
13,526 |
11,116 |
| Total other
revenues (in €m) |
(637) |
(563) |
(1,256) |
(1,082) |
|
Net cost (in €m) |
6,253 |
5,758 |
12,270 |
10,034 |
|
Capacity produced, reported in ASK* |
78,144 |
72,127 |
147,727 |
130,192 |
|
Net cost per ASK (in € cents per ASK) |
8.00 |
7.98 |
8.31 |
7.71 |
|
Gross change |
|
0.2 % |
|
7.8 % |
| Currency effect
on net costs (in €m) |
|
(17) |
|
43 |
| Change at
constant currency |
|
0.5 % |
|
7.3 % |
|
Fuel price effect (in €m) |
|
-319 |
|
134 |
|
Net cost per ASK on a constant currency and constant fuel
price (in € cents per ASK) |
8.00 |
7.52 |
8.31 |
7.84 |
|
Change at constant currency and constant fuel
price |
|
6.4 % |
|
5.9 % |
|
Furlough |
|
+42 |
|
+253 |
|
|
8.0 |
7.6 |
8.3 |
8.0 |
|
Change at constant currency and constant fuel price
excluding furlough |
|
5.6 % |
|
3.3 % |
Group fleet at 30 June 2023
| Aircraft
type |
AF (incl. HOP)4 |
KL (incl. KLC & MP)4 |
Transavia |
Owned |
Finance lease |
Operating lease |
Total |
In operation |
Change vs 31/12/22 |
| B777-300 |
43 |
16 |
|
20 |
15 |
24 |
59 |
59 |
|
| B777-200 |
18 |
15 |
|
28 |
1 |
4 |
33 |
33 |
|
| B787-9 |
10 |
13 |
|
4 |
7 |
12 |
23 |
23 |
|
| B787-10 |
|
10 |
|
2 |
8 |
|
10 |
10 |
3 |
| A380-800 |
4 |
|
|
2 |
1 |
1 |
4 |
|
|
| A350-900 |
20 |
|
|
3 |
7 |
10 |
20 |
20 |
|
| A330-300 |
|
5 |
|
|
|
5 |
5 |
5 |
|
|
A330-200 |
15 |
6 |
|
11 |
|
10 |
21 |
21 |
|
|
Total Long-Haul |
110 |
65 |
0 |
70 |
39 |
66 |
175 |
171 |
3 |
|
B737-900 |
|
5 |
|
5 |
|
|
5 |
5 |
|
| B737-800 |
|
31 |
110 |
34 |
8 |
99 |
141 |
135 |
10 |
| B737-700 |
|
6 |
4 |
7 |
|
3 |
10 |
10 |
|
| A321 |
16 |
|
|
9 |
|
7 |
16 |
16 |
-2 |
| A320 |
39 |
|
|
4 |
3 |
32 |
39 |
37 |
-2 |
| A319 |
15 |
|
|
10 |
|
5 |
15 |
14 |
-3 |
| A318 |
9 |
|
|
5 |
|
4 |
9 |
7 |
-2 |
|
A220-300 |
25 |
|
|
17 |
|
8 |
25 |
25 |
10 |
|
Total Medium-Haul |
104 |
42 |
114 |
91 |
11 |
158 |
260 |
249 |
11 |
|
Canadair Jet 1000 |
4 |
|
|
4 |
|
|
4 |
|
|
| Canadair Jet
700 |
|
|
|
|
|
|
|
|
|
| Embraer 195
E2 |
|
16 |
|
|
|
16 |
16 |
16 |
2 |
| Embraer 190 |
19 |
30 |
|
17 |
4 |
28 |
49 |
49 |
|
| Embraer 175 |
|
17 |
|
3 |
14 |
|
17 |
17 |
|
| Embraer 170 |
13 |
|
|
10 |
|
3 |
13 |
13 |
|
|
Embraer 145 |
|
|
|
|
|
|
|
|
|
|
Total Regional |
36 |
63 |
0 |
34 |
18 |
47 |
99 |
95 |
2 |
|
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 |
252 |
174 |
114 |
199 |
68 |
273 |
540 |
521 |
16 |
2023 TRAFFIC
Passenger network activity
| |
Current quarter |
Year to date |
|
Total network airlines |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Passengers carried (‘000s) |
18,743 |
17,556 |
7% |
34,530 |
29,498 |
17% |
| Revenue
pax-kilometers (m RPK) |
58,319 |
52,479 |
11% |
111,284 |
91,346 |
22% |
| Available
seat-kilometers (m ASK) |
66,714 |
61,697 |
8% |
128,690 |
114,268 |
13% |
|
Load factor (%) |
87% |
85% |
2pt |
86% |
80% |
7pt |
|
|
|
|
|
|
|
|
|
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
6,370 |
5,765 |
10% |
12,309 |
10,145 |
21% |
| Revenue
pax-kilometers (m RPK) |
47,373 |
42,070 |
13% |
91,882 |
74,396 |
24% |
| Available
seat-kilometers (m ASK) |
53,792 |
49,285 |
9% |
105,331 |
92,525 |
14% |
|
Load factor (%) |
88% |
85% |
3pt |
87% |
80% |
7pt |
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
2,459 |
2,282 |
8% |
4,244 |
3,520 |
21% |
| Revenue
pax-kilometers (m RPK) |
17,457 |
16,330 |
7% |
30,308 |
25,386 |
19% |
| Available
seat-kilometers (m ASK) |
19,481 |
19,139 |
2% |
35,096 |
32,291 |
9% |
|
Load factor (%) |
90% |
85% |
4pt |
86% |
79% |
8pt |
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
859 |
767 |
12% |
1,751 |
1,442 |
21% |
| Revenue
pax-kilometers (m RPK) |
8,130 |
7,215 |
13% |
16,623 |
13,726 |
21% |
| Available
seat-kilometers (m ASK) |
9,103 |
8,144 |
12% |
18,493 |
15,801 |
17% |
|
Load factor (%) |
89% |
89% |
1pt |
90% |
87% |
3pt |
|
|
|
|
|
|
|
|
|
Asia / Middle East |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
1,280 |
859 |
49% |
2,485 |
1,493 |
66% |
| Revenue
pax-kilometers (m RPK) |
10,019 |
6,117 |
64% |
19,230 |
10,508 |
83% |
| Available
seat-kilometers (m ASK) |
11,557 |
7,390 |
56% |
22,163 |
14,610 |
52% |
|
Load factor (%) |
87% |
83% |
4pt |
87% |
72% |
15pt |
|
|
|
|
|
|
|
|
|
Africa |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
994 |
936 |
6% |
2,035 |
1,751 |
16% |
| Revenue
pax-kilometers (m RPK) |
6,039 |
5,568 |
8% |
12,481 |
10,360 |
20% |
| Available
seat-kilometers (m ASK) |
7,145 |
6,839 |
4% |
14,744 |
13,137 |
12% |
|
Load factor (%) |
85% |
81% |
3pt |
85% |
79% |
6pt |
|
|
|
|
|
|
|
|
|
Caribbean / Indian Ocean |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
778 |
920 |
(15)% |
1,794 |
1,939 |
(7)% |
| Revenue
pax-kilometers (m RPK) |
5,728 |
6,840 |
(16)% |
13,240 |
14,415 |
(8)% |
| Available
seat-kilometers (m ASK) |
6,506 |
7,773 |
(16)% |
14,835 |
16,687 |
(11)% |
|
Load factor (%) |
88% |
88% |
0pt |
89% |
86% |
3pt |
|
|
|
|
|
|
|
|
|
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
12,373 |
11,791 |
5% |
22,221 |
19,353 |
15% |
| Revenue
pax-kilometers (m RPK) |
10,945 |
10,409 |
5% |
19,402 |
16,950 |
14% |
| Available
seat-kilometers (m ASK) |
12,923 |
12,412 |
4% |
23,359 |
21,743 |
7% |
|
Load factor (%) |
85% |
84% |
1pt |
83% |
78% |
5pt |
Transavia activity
| |
Current quarter |
Year to date |
|
Transavia |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Passengers carried (‘000s) |
5,921 |
5,247 |
13% |
9,785 |
7,828 |
25% |
| Revenue
seat-kilometers (m RSK) |
10,179 |
8,886 |
15% |
17,134 |
13,154 |
30% |
| Available
seat-kilometers (m ASK) |
11,429 |
10,430 |
10% |
19,037 |
15,924 |
20% |
|
Load factor (%) |
89% |
85% |
4pt |
90% |
83% |
7pt |
Total Group passenger
activity
| |
Current quarter |
Year to date |
|
Total Group |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Passengers carried (‘000s) |
24,664 |
22,804 |
8% |
44,315 |
37,326 |
19% |
| Revenue
pax-kilometers (m RPK) |
68,498 |
61,365 |
12% |
128,418 |
104,499 |
23% |
| Available
seat-kilometers (m ASK) |
78,144 |
72,127 |
8% |
147,727 |
130,192 |
13% |
|
Load factor (%) |
88% |
85% |
3pt |
87% |
80% |
7pt |
Cargo activity
| |
Current quarter |
Year to date |
|
Cargo |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Revenue tonne-km (m RTK) |
1,585 |
1,732 |
(8)% |
3,143 |
3,498 |
(10)% |
| Available
tonne-km (m ATK) |
3,557 |
3,342 |
6% |
6,845 |
6,316 |
8% |
|
Load factor (%) |
45% |
52% |
(7)pt |
46% |
55% |
(9)pt |
Air France activity
| |
Current quarter |
Year to date |
|
Total Passenger network activity |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Passengers carried (‘000s) |
10,832 |
10,344 |
5% |
20,289 |
17,449 |
16% |
| Revenue
pax-kilometers (m RPK) |
34,434 |
30,995 |
11% |
66,415 |
54,082 |
23% |
| Available
seat-kilometers (m ASK) |
39,424 |
36,621 |
8% |
76,736 |
67,491 |
14% |
|
Load factor (%) |
87% |
85% |
3pt |
87% |
80% |
6pt |
|
|
|
|
|
|
|
|
|
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
3,888 |
3,556 |
9% |
7,584 |
6,322 |
20% |
| Revenue
pax-kilometers (m RPK) |
28,190 |
25,065 |
12% |
55,151 |
44,517 |
24% |
| Available
seat-kilometers (m ASK) |
32,027 |
29,458 |
9% |
63,174 |
55,192 |
14% |
|
Load factor (%) |
88% |
85% |
3pt |
87% |
81% |
7pt |
|
|
|
|
|
|
|
|
|
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
6,944 |
6,788 |
2% |
12,704 |
11,127 |
14% |
| Revenue
pax-kilometers (m RPK) |
6,243 |
5,930 |
5% |
11,264 |
9,565 |
18% |
| Available
seat-kilometers (m ASK) |
7,397 |
7,162 |
3% |
13,562 |
12,300 |
10% |
|
Load factor (%) |
84% |
83% |
2pt |
83% |
78% |
5pt |
|
|
|
|
|
|
|
|
|
Cargo activity |
|
|
|
|
|
|
|
Revenue tonne-km (m RTK) |
789 |
890 |
(11)% |
1,578 |
1,797 |
(12)% |
| Available
tonne-km (m ATK) |
1,977 |
1,861 |
6% |
3,837 |
3,519 |
9% |
|
Load factor (%) |
40% |
48% |
(8)pt |
41% |
51% |
(10)pt |
KLM activity
| |
Current quarter |
Year to date |
|
Total Passenger network activity |
2023 |
2022 |
variation |
2023 |
2022 |
variation |
|
Passengers carried (‘000s) |
7,911 |
7,212 |
10% |
14,241 |
12,049 |
18% |
| Revenue
pax-kilometers (m RPK) |
23,885 |
21,484 |
11% |
44,869 |
37,264 |
20% |
| Available
seat-kilometers (m ASK) |
27,290 |
25,077 |
9% |
51,954 |
46,777 |
11% |
|
Load factor (%) |
88% |
86% |
2pt |
86% |
80% |
7pt |
|
|
|
|
|
|
|
|
|
Long-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
2,482 |
2,209 |
12% |
4,724 |
3,823 |
24% |
| Revenue
pax-kilometers (m RPK) |
19,183 |
17,005 |
13% |
36,731 |
29,878 |
23% |
| Available
seat-kilometers (m ASK) |
21,764 |
19,827 |
10% |
42,157 |
37,333 |
13% |
|
Load factor (%) |
88% |
86% |
2pt |
87% |
80% |
7pt |
|
|
|
|
|
|
|
|
|
Short and Medium-haul |
|
|
|
|
|
|
|
Passengers carried (‘000s) |
5,429 |
5,003 |
9% |
9,517 |
8,225 |
16% |
| Revenue
pax-kilometers (m RPK) |
4,702 |
4,479 |
5% |
8,138 |
7,385 |
10% |
| Available
seat-kilometers (m ASK) |
5,525 |
5,250 |
5% |
9,797 |
9,443 |
4% |
|
Load factor (%) |
85% |
85% |
–pt |
83% |
78% |
5pt |
|
|
|
|
|
|
|
|
|
Cargo activity |
|
|
|
|
|
|
|
Revenue tonne-km (m RTK) |
796 |
842 |
(5)% |
1,564 |
1,701 |
(8)% |
| Available
tonne-km (m ATK) |
1,581 |
1,480 |
7% |
3,008 |
2,797 |
8% |
|
Load factor (%) |
50% |
57% |
(7)pt |
52% |
61% |
(9)pt |
1 change is nominal and not corrected for fuel price2 against a
constant fuel price, constant currency and excluding furlough
contribution3 refers to 2024-2026 period4 Excluding Transavia
- Air France-KLM Q2 2023 Results press release
Air FranceKLM (EU:AF)
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