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Kurs & Likviditet

Kursutveckling och likviditet under dagen för detta pressmeddelande
2022-07-29 07:15:00

July 29, 2022

Second QUARTER 2022
Strong results driven by a spike in demand

Second quarter:

  • Positive operating result at 386 million euros
  • Net income at 324 million euros, showing a 1.8 billion euros improvement compared to the same quarter last year
  • Positive adjusted operating free cash flow at 1.5 billion euros thanks to positive EBITDA and strong ticket sales. It improved by 1.3 billion euros compared to the same quarter in 2021
  • The Group has already successfully achieved 2.8 billion euros of equity measures of the up to 4 billion announced last February
  • Air France-KLM/Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon). KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million euros
  • Net debt at 6.0 billion euros, down by 2.2 billion euros compared to end of 2021 thanks to a positive adjusted operating free cash flow and the rights issue completed in June 2022

Mr. Benjamin Smith, Group CEO, said:
The strong recovery we see this summer is putting the entire aviation industry to the test. While Air France-KLM had prepared for close to pre-pandemic demand levels, our airlines are not immune to the major operational challenges taking place around the world. Customer satisfaction is at the top of our priorities and we know we have not fully been able to deliver the quality of service that has come to be expected from us. I would like to thank our customers for their trust and patience. I would also like to express my gratitude towards our employees for their unwavering commitment, even in difficult situations. It is thanks to their dedication and sense of collective responsibility that we are able to post better-than-expected revenues and results this quarter. Going forward we will continue to implement our strategy in order to further transform our organization. We aim to increase our resilience to the changes of our environment while continuing to accelerate our efforts to make our Group and aviation as a whole more sustainable.”

Outlook:

Context:
Air France and KLM are among the most active airlines to accommodate the travel recovery, with a second quarter capacity for Network passenger activity at an index of 82%. Despite the summer growth anticipation efforts since January, operational difficulties arose in Europe and the United States, mainly due to labour shortages at airports.
Air France and KLM are doing their utmost to mitigate these challenges and has prioritised safeguarding the trust of our customers. For this quarter, it resulted into 70 million euros additional compensation costs.

Capacity
In this recovery context, the Group expects the capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at an index of:

  • 80% to 85% in the Third quarter of 2022
  • 85% to 90% in the Fourth quarter of 2022
  • Circa 80% for the Full Year 2022

All indices compared to the respective period of 2019.

The capacity for Transavia in Available Seat Kilometers is expected at an index above 100 for the full year and in the third and fourth quarter 2022 compared to 2019.

Yield
The yield environment should remain high for the rest of 2022 with a strong summer demand resulting in yield levels above 2019.

Expected operating result

  • Significantly positive in the third quarter
  • Positive in 2022, for the first time since 2019

Cash
As of June 30 2022, the Group has a strong 11.9 billion euros of liquidity and credit lines at disposal.

Full year 2022 Net Capex spending is estimated at circa 2.5 billion euros, which is 80% fleet & fleet related and 20% IT & Ground related.

Air France-KLM made major steps to pave the financial trajectory

  • In February, Air France-KLM announced plans for a set of equity strengthening measures up to 4 billion euros.

  • Later in June, the Group successfully completed a 2.3 billion euros rights issue, with CMA-CGM becoming a new strategic shareholder and a reference commercial partner in the cargo activity. Air France-KLM / Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon), aiming to redeem at least 75% as soon as possible.

  • In the meantime, KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million euros. 2.4 billion euros RCF and State Loan is still available, and KLM expects to strengthen its balance sheet with positive net results and further equity measures are being contemplated.

  • Air France-KLM and Apollo have closed on the 28th July an investment of 500 million euros by Apollo Funds to finance an ad hoc affiliate of Air France owning a pool of spare engines, as per the agreement signed on July 13th. In alignment with the requirement of article 77 bis of the European Commission’s “Temporary Framework for State aid recapitalization measures”, proceeds from the investment will be used to further redeem outstanding French State perpetual bonds issued in late April 2021.

  • Later in 2022-2023, the Group will contemplate possible hybrid bond issuances up to 1.2 billion euros subject to market conditions.

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

Air France-KLM Group: Second quarter operating margin at 2019 level despite the steep increase of fuel cost

 Second quarterHalf year
 2022ChangeChange
constant currency
2022ChangeChange
constant currency
Passengers (thousands)22,803+224.5% 37,326+215.0% 
Capacity (ASK m)72,127+81.9% 130,192+75.3% 
Traffic (RPK m)61,365+243.4% 104,499+227.7% 
Passenger unit revenue per ASK (€ cts)      7.41 +93.6%+89.1% 6.51 +91.8%+87.9%
Group unit revenue per ASK (€ cts)      8.52 +46.1%+42.1% 7.73 +41.4%+38.0%
Group unit cost per ASK (€ cts) at constant fuel     7.98 +3.2%-12.7%7.71-4.6%-15.6%
Revenues (€m)6,707+143.9%+138.7%11,152+127.1%+123.8%
EBITDA (€m)9311,1801,1861,1522,0292,050
Operating result (€m) 3861,1391,145361,9701,989
Operating margin (%)5.8%+33.1 pt+32.8 pt0.3%+39.7 pt+39.5 pt
Net income - Group part (€m)324+1,813 -228+2,744 
Adj. operating free cash flow (€m)1,532+1,322 2,163+3,297 
Net debt at end of period (€m)1   6,036-2,180 

In the Second quarter 2022, the Air France-KLM Group posted a positive operating result of 386 million euros, up by 1,145 million euros at a constant currency compared to last year, and was driven by an increase of capacity. In parallel, the increase of load factor and yield generated an increase of the unit revenue.
Net income amounted to 324 million euros in the Second quarter 2022, an increase of 1.8 billion euros compared to last year. The recognition of tax assets at KLM group for an amount of around 300 million euros supported the positive net income generation.

In a challenging cost environment, transformation programs contain the unit cost up 2.4% with 15% capacity below 2019.

The unit cost is up 2.4% at a constant fuel price and constant currency versus the Second quarter 2019, with a capacity down by 15%. The ongoing transformation programs enable Air France-KLM to limit the impact of increasing costs such as airport and ATC charges, and the KLM Collective Labour Agreement (CLA) delayed implementation.

Compared to June 2019, the number of Full Time Equivalents (FTE’s) of Air France excluding Transavia reduced by 16% and by 13% for KLM.

Staff costs decreased in the Second quarter by 11% compared to the same quarter in 2019 thanks to FTE reduction and the French government support on wages. Corrected for government support on wages, staff costs decreased by 9%.

Business review  

Network: Significant improvement in operating result

Network

 
Second quarterHalf year
2022ChangeChange
constant currency
2022ChangeChange
constant currency
Total revenues (€m)5,753+143.5%+137.4%9,647+128.6%+123.6%
Scheduled revenues (€m)5,532+153.0%+145.7%9,207+136.1%+130.2%
Operating result (€m)352+1,006+1,01343+1,758+1,773

Second quarter 2022 revenues increased by 137.4% at constant currency to 5,753 million euros. The operating result amounted to 352 million euros, a 1,013 million euros increase at constant currency compared to last year.

Passenger network: Double-digit yield increase on most regions and on both
economy and premium cabins

 Second quarterHalf year
Passenger network2022ChangeChange
constant currency
2022ChangeChange
constant currency
Passengers (thousands)17,556+199.9% 29,497+185.8% 
Capacity (ASK m)61,697+69.4% 114,268+63.2% 
Traffic (RPK m) 52,479+229.4% 91,346+211.1% 
Load factor 85.1%+41.3 pt 79.9%+38.0 pt 
Total passenger revenues (€m)4,835+229.3%+223.4%7,818+214.3%+209.6%
Scheduled passenger revenues (€m)4,732+239.9%+231.3%7,610+223.0%+216.0%
Unit revenue per ASK (€ cts) 7.67+100.7%+95.6%6.66+97.9%+93.6%

Second quarter 2022, capacity in Available Seat Kilometers (ASK) was 69.4% higher than last year and at 82% of 2019 Second quarter level which was in the middle of the Group’s guidance provided during the First quarter 2022 results presentation.

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

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

  • North Atlantic: Strong improvement since mid-January driven by the strong traffic recovery, with strong yield due to fare increases and a positive cabin mix. The second quarter showed new bookings outpacing 2019 levels.
  • Capacity discipline on South America routes combined with a very resilient demand led to a strong yield. Corporate traffic ramped up quickly in the same time.
  • Asia: The strong yield performance is due to limited capacity and the group continues to observe important differences between the regions. South East Asia and India showed positive dynamic in yield and traffic.
  • Caribbean & Indian Ocean: The yields improved thanks to successive fare increases and a positive cabin mix effect.
  • Africa: A strong corporate recovery was observed in all areas. For KLM, the performance was driven by East and South Africa with strong yield increase linked to positive cabin mix and a positive economy yield evolution. For Air France, performance was driven by West and Central African countries with a good steering strategy.
  • Middle-East: The second quarter performance stayed strong thanks to Dubai, especially on premium cabins and an increased traffic on some routes.
  • Medium-haul: Strong booking dynamic since March. KLM is impacted by operational challenges and restrictions on flight departures from Amsterdam which led to traffic restriction. The yield is above 2019, especially on leisure routes with network capacity constraints and a positive competition environment.
  • Short-haul: The network was able to absorb capacity recovery month over month thanks to business motive dynamism. Yield is above 2019 helped by steering yield initiatives.

During the Second quarter, Air France added three Airbus 350-900 and two Airbus A220-300. One B777-200, one Airbus 320, three Airbus 319, two Embraer 170 and five Canadair Jet 1000 were phased out. KLM phased in three Embraer 195 E2. The Group will continue to introduce new generation aircraft to its fleet in order to improve its economic and environmental performance.

Cargo: Strong yield increase mitigates traffic impact on Asia trade lanes

 Second quarterHalf year
Cargo business2022ChangeChange
constant currency
2022ChangeChange
constant currency
Tons (thousands)236-13.4% 472-12.7% 
Capacity (ATK m)3,341+27.4% 6,315+18.9% 
Traffic (RTK m) 1,732-17.2% 3,497-16.1% 
Load factor 51.8%-27.9 pt 55.4%-23.1 pt 
Total Cargo revenues (€m)918+2.6%-1.1%1,828+5.5%+2.2%
Scheduled cargo revenues (€m)801+0.7%-2.8%1,597+3.5%+0.4%
Unit revenue per ATK (€ cts ) 23.96-20.9%-23.7%25.29-13.0%-15.5%

Compared to the Second quarter 2021, cargo capacity strongly increased by 27.4% in Available Ton Kilometers, mainly due to the increase in worldwide belly capacity, except for Asia. This limited belly capacity to Asia affected the overall traffic which resulted in a traffic decrease of 17.2% and contributed to an overall decrease in load factor by 27.9 points. Yields, however, remain at a consistently high level (+17.4% vs. 2021), leading to a total Second quarter revenue performance at last year's level.

When compared to the pre-COVID year 2019, cargo capacity in the Second quarter was still 8% below 2019. However, due to exceptional yield performance – driven by high demand – total revenues in the Second quarter of 2022 were 76% higher than 2019.

In May, Air France-KLM announced its entry into a strategic partnership with CMA-CGM Air Cargo (CCAC). The partnership agreement is currently being worked out and expected to be finalized before the end of 2022.
In June, Air France-KLM Cargo won the Air Cargo Industry Achievement Award for their pioneering work in the development and distribution of sustainable aviation fuel and the fast expansion of its leading SAF program.

Transavia: Capacity above pre-crisis level with a load factor of 85%

 Second quarterHalf year
Transavia2022Change2022Change
Passengers (thousands)5,247+346.8%7,828+412.8%
Capacity (ASK m)10,430+221.9%15,924+274.6%
Traffic (RPK m) 8,886+358.2%13,154+421.6%
Load factor 85.2%+25.3 pt82.6%+23.3 pt
Total passenger revenues (€m)601+378.0%850+422.2%
Unit revenue per ASK (€ cts) 5.86+51.0%5.41+41.2%
Unit cost per ASK (€ cts)6.04-12.5%6.11-31.9%
Operating result (€m)-18+80-110+108

In the Second quarter of 2022, the demand recovery in leisure traffic in Europe and North Africa continued. Compared to last year, the capacity in the Second quarter increased by 221.9%, traffic increased by 358.2%, and the number of passengers increased by 346.8%. Last year, Second quarter was heavily impacted by travel restrictions in Europe and North Africa.

The Operating result was slightly negative at -18 million euros, although improved by 80 million euros compared to the Second quarter of 2021.

Capacity in the Second quarter was above the level of the Second quarter of 2019 and unit revenue even above the Second quarter 2019 mainly driven by a strong yield improvement.

The fleet of Transavia is approaching 100 aircraft, to further capture the strong demand of leisure traffic in Europe.

Maintenance business: Operating margin above 2019 level

 Second quarterHalf year
Maintenance2022ChangeChange
constant currency
2022ChangeChange
constant currency
Total revenues (€m)911+34.1% 1,742+33.9% 
Third-party revenues (€m)345+35.1%+35.3%642+25.0%+30.0%
Operating result (€m)576061101111117
Operating margin (%)6.3%+6.7 pt+6.8 pt5.8%+6.6 pt+7.1 pt

The Second quarter operating result stood at 57 million euros, an increase of 61 million euros at constant currency versus the Second quarter 2021 thanks to a higher activity and an operational improvement.   

Total revenues increased by 34.1% in the Second quarter while third party revenues increased by 35.1%, showing a strong recovery. The increase in internal revenues is consistent with the activity increase of the Air France-KLM airlines compared to the Second quarter 2021.
The operating margin stood at 6.3%, which is 6.7 points higher than the operating results in the Second quarter 2021. The half year margin amounts to 5.8%, which is at the level of the pre-covid period when excluding the states support.

During the second quarter, Air France-KLM and Apollo Global Management announced the signing of a definitive agreement for Apollo managed funds and entities to make a 500 million euros investment in to an ad hoc operating affiliate of Air France that will own a pool of spare engines dedicated to the airline’s Engineering and Maintenance activities.

Second quarter: Positive EBITDA and strong ticket sales reinforces the adjusted operating free cash flow and supports net debt reduction by 2.2 billion euros

 Second quarterHalf year
In € million2022Change2022Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)785+1,237841+2,083
Cash out related to Voluntary Departure Plans (€m)-68+12-125+0
Change in Working Capital Requirement (WCR) (€m)1,510+2992,835+1,715
Net cash flow from operating activities (€m)2,2391,5253,6203,787
Net investments* (€m)-482-195-1,015-481
Operating free cash flow (€m)1,757+1,3302,6053,306
Repayment of lease debt-225-8-442-9
Adjusted operating free cash flow**1,532+1,3222,163+3,297

* Sum of ‘Purchase of property, plant and equipment and intangible assets’ and ‘Proceeds on disposal of property, plant and equipment and intangible assets’ as presented in the consolidated cash flow statement.

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

The Group generated an adjusted operating free cash flow in the Second quarter 2022 of 1,532 million euros, an increase of 1,322 million euros compared to last year, mainly driven by a positive change in working capital of 1,510 million euros. This was the fifth quarter in a row that the adjusted operating free cash flow was positive.

In € million30 Jun 202231 Dec 2021
Net debt 6,0368,216
EBITDA trailing 12 months2,773745
Net debt/EBITDA trailing 12 months2.2 x11.0 x

Both airlines able to reach positive operating margin

 Second quarterHalf year
 2022Change2022Change
Air France Group Operating result (€m)133+700-230+1,179
Operating margin (%)3.3%+37.8 pt-3.4%+43.8 pt
KLM Group Operating result (€m)262+447266+787
Operating margin (%)9.4%+24.8 pt5.7%+30.1 pt
  • Significant improvement in Operating result for both airlines with operating margins close to 2019 levels

******

The external auditors carried out limited review procedures. Their limited review report was issued following the Board meeting.

The results presentation is available at www.airfranceklm.com on July 29, 2022 from 7:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on July 29, 2022 at 08.30 am CET.
            
To connect to the conference call, please dial:

France: Local +33 (0)1 76 77 28 19
Netherlands: Local +31 (0)20 703 8218
UK: Local +44 (0)330 165 4012
US: Local +1 323-701-0160

Confirmation code: 1131773

Investor Relations Press
Frederic KahaneMichiel Klinkers 
  +33 1 41 56 56 00
frkahane@airfranceklm.comMichiel.klinkers@airfranceklm.com 

Income Statement

 Second quarterHalf year
€m20222021*Change20222021*Change
Revenues from ordinary activities6,7072,750+143.9%11,1524,910+127.1%
Aircraft fuel-1,863-520+258.3%-2,858-982+191.0%
Chartering costs-93-78+19.2%-193-147+31.3%
Landing fees and air route charges-436-245+78.0%-784-460+70.4%
Catering-176-68+158.8%-319-126+153.2%
Handling charges and other operating costs-401-211+90.0%-722-402+79.6%
Aircraft maintenance costs-603-447+34.9%-1,118-792+41.2%
Commercial and distribution costs-230-72+219.4%-384-131+193.1%
Other external expenses -368-254+44.9%-702-552+27.2%
Salaries and related costs-1,820-1,238+47.0%-3,343-2,406+38.9%
Taxes other than income taxes-34-29+17.2%-80-69+15.9%
Other income and expenses248163+52.1%503280+79.6%
EBITDA931-249nm1,152-877nm
Amortization, depreciation and provisions-545-504+8.1%-1,116-1,057+5.6%
Income from current operations386-753nm36-1,934nm
Sales of aircraft equipment39-11nm39-14nm
Other non-current income and expenses-10-849-98.8%-15-853-98%
Income from operating activities415-1,613nm60-2,801nm
Cost of financial debt-136-149-8.7%-277-339-18.3%
Income from cash and cash equivalent12-50.0%03-100.0%
Net cost of financial debt-135-147-8.2%-277-336-17.6%
Other financial income and expenses-2385nm-286-85+236.5%
Income before tax42-1,755nm-503-3,222-84.4%
Income taxes283272+4.0%278263+5.7%
Net income of consolidated companies325-1,483nm-225-2,959-92.4%
Share of profits (losses) of associates0-9-100.0%-1-16-93.8%
Net income for the period325-1,492nm-226-2,975-92.4%
Non-controlling interests1-3nm2-3nm
Net income for the period – Group part324-1,489nm-228-2,972-92.3%

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

Consolidated Balance Sheet

Assets30 Jun 2022

 
31 Dec 2021

 
€m
Goodwill223222
Intangible assets1,2131,235
Flight equipment10,52110,466
Other property, plant and equipment1,3581,402
Right-of-use assets5,4395,148
Investments in equity associates108109
Other non-current financial assets1,064951
Non-current derivatives financial assets304143
Deferred tax assets494278
Total non-current assets20,72419,954
Assets held for sale7874
Other current financial assets589484
Current derivatives financial assets954469
Inventories654567
Trade receivables2,0451,511
Other current assets1,133966
Cash and cash equivalents8,1736,658
Total current assets13,62610,729
Total assets34,35030,683


Liabilities and equity30 Jun 2022

 
31 Dec 2021

 
In million euros
Issued capital2,571643
Additional paid-in capital5,2174,949
Treasury shares-25-25
Perpetual bonds1,3893,151
Reserves and retained earnings-12,349-12,542
Equity attributable to equity holders of Air France-KLM-3,197-3,824
Non-controlling interests108
Total Equity-3,187-3,816
Pension provisions1,5581,939
Non-current return obligation liability and other provisions4,2724,055
Non-current financial liabilities10,56811,274
Non-current lease debt3,3352,924
Non-current derivatives financial liabilities125
Deferred tax liabilities31
Other non-current liabilities2,4652,555
Total non-current liabilities22,20222,773
Current return obligation liability and other provisions838885
Current financial liabilities1,0791,215
Current lease debt851825
Current derivatives financial liabilities4246
Trade payables2,8211,850
Deferred revenue on ticket sales4,9382,644
Frequent flyer programs868888
Other current liabilities3,8963,369
Bank overdrafts24
Total current liabilities15,33511,726
Total equity and liabilities34,35030,683

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

€m30 Jun 202230 Jun 2021*
Net income-226-2,975
Amortization, depreciation and operating provisions1,1161,057
Financial provisions6958
Loss (gain) on disposals of tangible and intangible assets-4014
Loss (gain) on disposals of subsidiaries and associates--26
Derivatives – non monetary result-20-29
Unrealized foreign exchange gains and losses, net24086
Impairment1715
Other non-monetary items-90762
Share of (profits) losses of associates116
Deferred taxes-282-265
Financial Capacity785-1,287
(Increase) / decrease in inventories-7912
(Increase) / decrease in trade receivables-437-268
Increase / (decrease) in trade payables971138
Increase / (decrease) in advanced ticket sales2,276489
Change in other receivables and payables104749
Change in working capital requirement2,8351,120
Net cash flow from operating activities3,620-167
Acquisition of subsidiaries, of shares in non-controlled entities-2
Purchase of property, plant and equipment and intangible assets-1,491-1,099
Proceeds on disposal of subsidiaries, of shares in non-controlled entities-71
Proceeds on disposal of property, plant and equipment and intangible assets476565
Decrease (increase) in net investments, more than 3 months685
Dividends received1-
Net cash flow used in investing activities-1,008-376
Increase of equity1,5511,024
Perpetual-993-
Coupons on perpetual-229-
Issuance of debt552690
Repayment on debt-1,187-750
Payments on debt on lease with bargain option-228-385
Payments on lease debt-442-433
New loans-175-37
Repayment on loans1644
Net cash flow from financing activities-1,135153
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold)401
Change in cash and cash equivalents and bank overdrafts1,517-389
Cash and cash equivalents and bank overdrafts at beginning of period6,6546,422
Cash and cash equivalents and bank overdrafts at end of period8,1716,033

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

In million euros30
Jun 2022
31 Mar 202231 Dec 202130* Sep 202130* Jun 202131* Mar 202131* Dec 202030* Sep 2020
Goodwill and intangible assets1,4371,4731,4571,4561,4641,4791,4451,470
Flight equipment10,52110,53710,46610,47810,64510,80011,03111,009
Other property, plant and equipment1,3581,3781,4021,4181,4531,4761,5481,535
Right of use assets5,3935,2055,1485,0615,0334,7954,6784,789
Investments in equity associates108107109172166223230224
Financial assets excluding marketable securities and financial deposits162158157147147146146135
Provisions, excluding pension, cargo litigation and restructuring-4,471-4,239-4,173-4,180-4,033-4,083-3,922-4,002
WCR, excluding market value of derivatives-11,156-9,589-8,262-7,995-7,745-6,410-6,505-6,894
Capital employed 3,3525,0306,3046,5577,1308,4268,6518,266
Average capital employed (A)5,3118,118
Adjusted results from current operations344-4,119
- Dividends received00
- Share of profits (losses) of associates-12-45
- Normative income tax-801,211
Adjusted result from current operations after tax (B)252-2,953
ROCE, trailing 12 months (B/A)4.7%-36.4%

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

Net debt

 Balance sheet at
€m31 Jun 202231 Dec 2021
Current and non-current financial liabilities11,64712,489
Current and non-current lease debt4,1863,749
Accrued interest-122-128
Deposits related to financial liabilities-96-99
Deposits related to lease debt-96-85
Derivatives impact on debt-60-14
Gross financial debt (A)15,45915,912
Cash and cash equivalents8,1736,658
Marketable securities85189
Cash secured424324
Triple A bonds743529
Bank overdrafts-2-4
Net cash (B)9,4237,696
Net debt (A) – (B)6,0368,216

Adjusted operating free cash flow

 Second quarterHalf year
€m2022202120222021
Net cash flow from operating activities2,2397143,620-167
Investment in property, plant, equipment and intangible assets-787-632-1,491-1,099
Proceeds on disposal of property, plant, equipment and intangible assets 305345476565
Operating free cash flow1,7574272,605-701
Payments on lease debt-225-217-442-433
Adjusted operating free cash flow1,5322102,163-1,134

Bridge from EBITDA to Financial capacity

 

 

 
Second quarterFirst Half
 20222021*20222021*
EBITDA931-2491,152-877
Provisions (CO2 and other)-27-70-16-28
Correction of spare parts inventory1233
Addition to pension provisions336065137
Reversal to pension provisions (cash-out)-19-40-32-83
Sales of tangible and intangible assets (excluding aeronauticals)31703131
Income from operation activities - cash impact950-2271,203-817
Restructuring costs-68-80-125-125
Other non-current income and expenses--63-2-63
Cost of financial debt-139-134-283-302
Financial income-3-3-8-7
Realized foreign exchanges gain/loss-1120347
Termination of trading hedges - cash--1--8
Settlements of forwards derivates - cash--2--2
Current income tax-1-4-2
Other financial charges & expenses - cash--8--8
Other elements--1-
Financial capacity729-497785-1,287

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

Unit cost: net cost per ASK

 Second quarterHalf year
 20222021*20222021*
Revenues (in €m)6,7072,75011,1524,910
Income/(loss) from current operations (in €m) -/--386753-361,934
Total operating expense (in €m)6,3213,50311,1166,844
Passenger network business – other revenues (in €m)-103-77-208-131
Cargo network business – other revenues (in €m)-117-99-231-190
Third-party revenues in the maintenance business (in €m)-345-255-642-514
Transavia - other revenues (in €m)10-12-
Third-party revenues of other businesses (in €m)-8-6-13-13
Net cost (in €m)5,7583,06610,0345,997
Capacity produced, reported in ASK*72,12739,657130,19274,254
Net cost per ASK (in € cents per ASK)7.987.737.718.08
Gross change 3.2% -4.6%
Currency effect on net costs (in €m) -70 -118
Change at constant currency 0.9% -6.4%
Fuel price effect (in €m) 492 668
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)7.989.157.719.14
Change at constant currency and fuel price basis -12.7% -15.6%

* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
(1) The capacity produced by the transportation activities is combined by adding the capacity of the Passenger network (in ASK) to that of Transavia (in ASK).

Group results
Air France Group

 Second quarterHalf year
 2022Change2022Change
Revenue (in €m)4,062+146.7%6,743+125.8%
EBITDA (in €m)444+726422+1,217
Operating result (in €m)133+700-230+1,179
Operating margin (%)3.3%+37.8 pt-3.4%+43.8 pt
Operating cash flow before WCR and restructuring cash out (in €m)343+741255+1,274
Operating cash flow (before WCR and restructuring) margin8.4%+32.6 pt3.8%+37.9 pt

KLM Group

 Second quarterHalf year
 2022Change2022Change
Revenue (in €m)2,782+130.5%4,685+119.2%
EBITDA (in €m)495+462729+807
Operating result (in €m)262+447266+787
Operating margin (%)9.4%+24.8 pt5.7%+30.1 pt
Operating cash flow before WCR and restructuring cash out (in €m)469+525667+836
Operating cash flow (before WCR and restructuring) margin16.9%+21.5 pt14.2%+22.2 pt

NB: Sum of individual airline results does not add up to Air France-KLM total due to intercompany eliminations at Group level

Group fleet at 30 June 2022

Aircraft typeAF
(incl. HOP)
KL
(incl. KLC & MP)
TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange / 31/12/21
B777-3004316 1916245959 
B777-2001915 27 73433-3
B787-91013 47122323 
B787-10 6 24 65 
A380-8008  4138  
A350-90018  37818186
A330-300 5   5551
A330-200156 11 102121 
Total Long-Haul1136107035691741644
B737-900 5 5  55 
B737-800 31953388512612610
B737-700 1047 71414 
A32119  11 81919 
A32041  44334140-2
A31925  12 132524-4
A31812  6 61211-1
A220-30010  7 31093
Total Medium-Haul107469985121552522486
Canadair Jet 10009  9  96-5
Canadair Jet 700         
Embraer 195 E2 12   1212125
Embraer 1901930 1652849492
Embraer 175 17 314 1717 
Embraer 17013  10 31313-2
Embraer 1452  2  2  
Total Regional43590401943102970
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2    222 
Total Cargo240402660
          
Total265170991996626953451510

SECOND QUARTER 2022 TRAFFIC

Passenger network activity*

  Q2  Year to date
Total Passenger network*20222021Variation 20222021Variation
Passengers carried (‘000s)17,5565,853199.9% 29,49710,321185.8%
Revenue pax-kilometers (m RPK)52,47915,931229.4% 91,34629,362211.1%
Available seat-kilometers (m ASK)61,69736,41769.4% 114,26870,00363.2%
Load factor (%)85.1%43.7%41.3 79.9%41.9%38.0
        
Long-haul       
Passengers carried (‘000s)5,7711,769226.2% 10,1553,338204.2%
Revenue pax-kilometers (m RPK)42,07012,199244.9% 74,39623,163221.2%
Available seat-kilometers (m ASK)49,28530,62560.9% 92,52559,95154.3%
Load factor (%)85.4%39.8%45.5 80.4%38.6%41.8
        
North America       
Passengers carried (‘000s)2,289423440.6% 3,530698406.1%
Revenue pax-kilometers (m RPK)16,3303,113424.6% 25,3865,143393.6%
Available seat-kilometers (m ASK)19,1399,005112.5% 32,29116,068101.0%
Load factor (%)85.3%34.6%50.8 78.6%32.0%46.6
        
Latin America       
Passengers carried (‘000s)767171347.8% 1,442366294.2%
Revenue pax-kilometers (m RPK)7,2151,650337.3% 13,7263,514290.7%
Available seat-kilometers (m ASK)8,1445,16557.7% 15,80110,45751.1%
Load factor (%)88.6%32.0%56.6 86.9%33.6%53.3
        
Asia / Middle East       
Passengers carried (‘000s)859327163.0% 1,493601148.2%
Revenue pax-kilometers (m RPK)6,1172,190179.2% 10,5084,038160.2%
Available seat-kilometers (m ASK)7,3907,1034.0% 14,61014,3481.8%
Load factor (%)82.8%30.8%51.9 71.9%28.1%43.8
        
Africa        
Passengers carried (‘000s)93653774.1% 1,75195483.6%
Revenue pax-kilometers (m RPK)5,5682,94888.9% 10,3605,21498.7%
Available seat-kilometers (m ASK)6,8395,28729.4% 13,13710,08830.2%
Load factor (%)81.4%55.8%25.7 78.9%51.7%27.2
        
Caribbean / Indian Ocean       
Passengers carried (‘000s)920310196.5% 1,939719169.8%
Revenue pax-kilometers (m RPK)6,8402,298197.7% 14,4155,255174.3%
Available seat-kilometers (m ASK)7,7734,06591.2% 16,6878,99085.6%
Load factor (%)88.0%56.5%31.5 86.4%58.4%27.9
        
Short and Medium-haul       
Passengers carried (‘000s)11,7844,084188.5% 19,3426,983177.0%
Revenue pax-kilometers (m RPK)10,4093,731179.0% 16,9506,199173.4%
Available seat-kilometers (m ASK)12,4125,792114.3% 21,74310,052116.3%
Load factor (%)83.9%64.4%19.4 78.0%61.7%16.3

* Air France and KLM

Transavia activity        

  Q2  Year to date
Transavia20222021Variation 20222021Variation
Passengers carried (‘000s)5,2471,175346.8% 7,8281,527412.8%
Revenue pax-kilometers (m RPK)8,8861,939358.2% 13,1542,522421.6%
Available seat-kilometers (m ASK)10,4303,240221.9% 15,9244,251274.6%
Load factor (%)85.2%59.9%25.3 82.6%59.3%23.3

Total group passenger activity**

  Q2  Year to date
Total group**20222021Variation 20222021Variation
Passengers carried (‘000s)22,8037,028224.5% 37,32611,848215.0%
Revenue pax-kilometers (m RPK)61,36517,870243.4% 104,49931,884227.7%
Available seat-kilometers (m ASK)72,12739,65781.9% 130,19274,25475.3%
Load factor (%)85.1%45.1%40.0 80.3%42.9%37.3

** Air France, KLM and Transavia

Cargo activity

  Q2  Year to date
Total Group20222021Variation 20222021Variation
Revenue tonne-km (m RTK)1,7312,087(17.0%) 3,4974,161(16.0%)
Available tonne-km (m ATK)3,3412,62327.4% 6,3155,31118.9%
Load factor (%)51.8%79.6%(27.7) 55.4%78.3%(23.0)


Air France activity

  Q2  Year to date
Total Passenger network activity20222021Variation 20222021Variation
Passengers carried (‘000s)10,3443,606186.8% 17,4496,652162.3%
Revenue pax-kilometers (m RPK)30,9959,155238.6% 54,08217,723205.1%
Available seat-kilometers (m ASK)36,62117,637107.6% 67,49134,05298.2%
Load factor (%)84.6%51.9%32.7 80.1%52.0%28.1


Long-haul       
Passengers carried (‘000s)3,5621,093225.8% 6,3312,142195.6%
Revenue pax-kilometers (m RPK)25,0657,017257.2% 44,51714,010217.8%
Available seat-kilometers (m ASK)29,45914,336105.5% 55,19228,25295.4%
Load factor (%)85.1%48.9%36.1 80.7%49.6%31.1


Short and Medium-haul       
Passengers carried (‘000s)6,7812,513169.9% 11,1164,510146.5%
Revenue pax-kilometers (m RPK)5,9302,138177.3% 9,5653,713157.6%
Available seat-kilometers (m ASK)7,1623,301117.0% 12,3005,800112.1%
Load factor (%)82.8%64.8%18.0 77.8%64.0%13.7


  Q2  Year to date
Cargo activity20222021Variation 20222021Variation
Revenue tonne-km (m RTK)889906(1.8%) 1,7961,812(0.8%)
Available tonne-km (m ATK)1,8611,26846.7% 3,5182,60235.2%
Load factor (%)47.8%71.4%(23.6) 51.1%69.6%(18.6)

KLM activity

  Q2  Year to date
Total Passenger network activity20222021Variation 20222021Variation
Passengers carried (‘000s)7,2122,247220.9% 12,0493,669228.4%
Revenue pax-kilometers (m RPK)21,4846,776217.1% 37,26411,639220.2%
Available seat-kilometers (m ASK)25,07718,78033.5% 46,77735,95130.1%
Load factor (%)85.7%36.1%49.6 79.7%32.4%47.3


Long-haul       
Passengers carried (‘000s)2,209676226.8% 3,8231,196219.7%
Revenue pax-kilometers (m RPK)17,0055,183228.1% 29,8789,153226.4%
Available seat-kilometers (m ASK)19,82716,28921.7% 37,33331,70017.8%
Load factor (%)85.8%31.8%53.9 80.0%28.9%51.2


Short and Medium-haul       
Passengers carried (‘000s)5,0031,572218.3% 8,2252,473232.6%
Revenue pax-kilometers (m RPK)4,4791,593181.2% 7,3852,486197.1%
Available seat-kilometers (m ASK)5,2502,491110.7% 9,4434,251122.1%
Load factor (%)85.3%63.9%21.4 78.2%58.5%19.7


  Q2  Year to date
Cargo activity20222021Variation 20222021Variation
Revenue tonne-km (m RTK)8421,181(28.7%) 1,7012,349(27.6%)
Available tonne-km (m ATK)1,4801,3559.2% 2,7972,7103.2%
Load factor (%)56.9%87.2%(30.3) 60.8%86.7%(25.9)



1 Change versus 31 Dec 2021