air france investor presentation

Air France-KLM Investor Presentation - JULY 2021

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Air France-KLM

FR001400J770

• Air France KLM : Financial Presentation

Results presentation

Results as of June 30, 2022

July 29, 2022

Q2 2022 highlights

Benjamin Smith

Chief Executive Officer

Airline industry: faster-than-expected recovery resulting into operational challenges

IATA 2022 forecast - Worldwide capacity & traffic

Index 100 = 2019 levels

A n e w g l o b a l e n v i r o n m e n t

Forecast October 2021

Forecast June 2022

S t r o n g t r a v e l d e m a n d i n a c o n t e x t o f s o c i a l u n r e s t a n d s t a f f

s h o r t a g e l e a d i n g t o

c r i t i c a l i n f r a s t r u c t u r e s

a n d AT C d i s r u p t i o n s

3 Source: IATA reports (airline industry economic performance)

Safeguarding the trust of our customers is our top priority in a complex operational environment

• Air France-KLM among the strongest in travel recovery with anticipated Summer growth
• Despite numerous proactive efforts, we face operational difficulties across our network in an industry-wide context of staff shortages and a challenging social environment across numerous customer touchpoint
• KLM has to operate in deteriorated conditions at Schiphol and mitigates the disruptions by prioritizing delayed customers over punctuality and facilitating rebooking with load factor restrictions on top of the restrictions requested by Schiphol airport (1)
• Overall, Air France is able to maintain a steady operation with 99.4% of scheduled flights in June and July (2)
• For Q2, those disruptions lead to an additional €70M cost (3) to compensate our customers and limit as much as possible the negative impact on their travel

Strong Q2 results driven by a favorable travel demand well anticipated from a capacity perspective by the airlines

• Positive Operating result of €0.4bn in Q2
• Load factor at 85% with group capacity at 85% compared to 2019
• Adjusted Operating Free Cash Flow at €1.5bn thanks to EBITDA of €931m and strong bookings for summer with more than €1bn of advanced tickets sales during Q2
• Major steps taken to strengthen the balance sheet
• Solid €11.9bn cash at hand and strong net debt reduction by €2.2bn versus Dec 2021

5 (1) June snapshot

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Air France-KLM SA published this content on 22 September 2022 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 22 September 2022 11:59:01 UTC .

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Yahoo Finance

Air france-klm 2023 investor day.

December 14, 2023

Air France-KLM is hosting today at 2pm CET its 2023 Investor Day. On this occasion, Benjamin Smith, Chief Executive Officer of Air France-KLM, joined by members of the Executive Committee, will present the strategic ambitions and financial trajectory for the next five years.

Benjamin Smith, CEO of Air France-KLM, said: “The transformation we have embarked on since 2019 at Air France-KLM has produced solid results, enabling us to rejoin the top tier of European leaders in the airline industry. We have delivered on our commitments, and I am particularly proud of the hard work carried out by all our teams to achieve these results, in a context marked by powerful headwinds. We are now well positioned to accelerate further and capture the full potential of our Group's assets to deliver sustained and more profitable growth, while achieving the ambitious targets we have set ourselves for reducing our environmental impact.”

Air France-KLM’s Investor Day agenda covers the following key priorities:

Improve market positions and increase revenue initiatives while continuing cost savings and simplification across all businesses.

Lead the way in sustainable aviation by reaffirming its 2030 targets and supporting the development of SAF production capabilities around the world, through offtake agreements and direct investments.

Focus further on Transavia’s growth and unit cost reduction to secure its number one position as LCC in the Netherlands and in Paris and capture the full potential of Paris-Orly network.

Maximise customer satisfaction and loyalty through superior service and enhanced operational excellence.

Expand the revenue contribution of Flying Blue, through growth prospect and higher value proposition to customers with airline partners and targeted enlargement of the non-airline partnerships.

Consolidate the Engineering & Maintenance market position as a world-leading multi-product profitable provider.

Position the Cargo business as leader in sustainable airfreight, while delivering best-in-class customer experiences.

Strengthen and develop the Group’s alliances and partners’ network and explore new growth opportunities through strategic consolidation.

Through disciplined capital allocation and a focused capital expenditures program, Air France-KLM will continue to invest in fleet renewal and maintenance to improve its economic performance and reduce its C0 2 emissions and noise pollution. For such, the Group estimates net capital expenditures of €3.0 to 3.5 billion per year between 2024 and 2026, and €3.5 to 3.8 billion per year in 2027 and 2028.

Based on a further acceleration of its transformation program and an enhanced cost effectiveness, the Group’s operating result is expected to improve by €2.0 billion over the next five years across all businesses.

The Group confirms its 2024-2026 outlook and sets the following targets for the 2026-2028 period:

A further profitability increase, with an operating margin above 8%;

A further unit cost reduction, thanks in particular to the acceleration of the transformation program;

A continued improvement on cash generation, to deliver a significantly positive adjusted operating free cash-flow;

A continued optimization of the Group’s financial profile, with long-term credit ratings at investment grade level.

Air France-KLM today announces two inaugural long-term issuer credit ratings:

Investment Grade “BBB-“ with Outlook Stable by Fitch

“BB+” with Outlook Stable by S&P Global Ratings

Air France-KLM is now rated Investment Grade with a “BBB-“ with a Stable Outlook by Fitch and with a “BB+” with a Stable Outlook by S&P Global Ratings. This solid outcome is the testimony of the Group’s robust operational performance, a notably improved financial structure with a solid liquidity and strong recovery following the Covid-19 pandemic.

Both agencies have highlighted that Air France-KLM is one of the largest global airline groups with leading positions at major hubs, benefitting from one of the world’s largest and most diversified network as well as a full service offering with MRO and Cargo businesses combined.

The live event will start at 2:00pm CET and can be accessed via the following link: https://www.yuca.tv/en/air-france-klm/investor-day-2023

Documentation will be available on the Air France-KLM website ( www.airfranceklm.com ) on December 14, 2023, from 8.30am CET.

Investors Relations

Michiel Klinkers                                  Marouane Mami                                                                     

[email protected]         [email protected]

Website: www.airfranceklm.com

PR - Air France-KLM Investor day

• Markets Data

Company Announcements

Air france-klm 2023 investor day.

December 14, 2023

Air France-KLM is hosting today at 2pm CET its 2023 Investor Day. On this occasion, Benjamin Smith, Chief Executive Officer of Air France-KLM, joined by members of the Executive Committee, will present the strategic ambitions and financial trajectory for the next five years.

Benjamin Smith, CEO of Air France-KLM, said: “The transformation we have embarked on since 2019 at Air France-KLM has produced solid results, enabling us to rejoin the top tier of European leaders in the airline industry. We have delivered on our commitments, and I am particularly proud of the hard work carried out by all our teams to achieve these results, in a context marked by powerful headwinds. We are now well positioned to accelerate further and capture the full potential of our Group's assets to deliver sustained and more profitable growth, while achieving the ambitious targets we have set ourselves for reducing our environmental impact.”

Air France-KLM’s Investor Day agenda covers the following key priorities:

• Improve market positions and increase revenue initiatives while continuing cost savings and simplification across all businesses.
• Lead the way in sustainable aviation by reaffirming its 2030 targets and supporting the development of SAF production capabilities around the world, through offtake agreements and direct investments.
• Focus further on Transavia’s growth and unit cost reduction to secure its number one position as LCC in the Netherlands and in Paris and capture the full potential of Paris-Orly network.
• Maximise customer satisfaction and loyalty through superior service and enhanced operational excellence.
• Expand the revenue contribution of Flying Blue, through growth prospect and higher value proposition to customers with airline partners and targeted enlargement of the non-airline partnerships.
• Consolidate the Engineering & Maintenance market position as a world-leading multi-product profitable provider.
• Position the Cargo business as leader in sustainable airfreight, while delivering best-in-class customer experiences.
• Strengthen and develop the Group’s alliances and partners’ network and explore new growth opportunities through strategic consolidation.

Through disciplined capital allocation and a focused capital expenditures program, Air France-KLM will continue to invest in fleet renewal and maintenance to improve its economic performance and reduce its C0 2 emissions and noise pollution. For such, the Group estimates net capital expenditures of €3.0 to 3.5 billion per year between 2024 and 2026, and €3.5 to 3.8 billion per year in 2027 and 2028.

Based on a further acceleration of its transformation program and an enhanced cost effectiveness, the Group’s operating result is expected to improve by €2.0 billion over the next five years across all businesses.

The Group confirms its 2024-2026 outlook and sets the following targets for the 2026-2028 period:

• A further profitability increase, with an operating margin above 8%;
• A further unit cost reduction, thanks in particular to the acceleration of the transformation program;
• A continued improvement on cash generation, to deliver a significantly positive adjusted operating free cash-flow;
• A continued optimization of the Group’s financial profile, with long-term credit ratings at investment grade level.

Air France-KLM today announces two inaugural long-term issuer credit ratings:

• Investment Grade “BBB-“ with Outlook Stable by Fitch
• “BB+” with Outlook Stable by S&P Global Ratings

Air France-KLM is now rated Investment Grade with a “BBB-“ with a Stable Outlook by Fitch and with a “BB+” with a Stable Outlook by S&P Global Ratings. This solid outcome is the testimony of the Group’s robust operational performance, a notably improved financial structure with a solid liquidity and strong recovery following the Covid-19 pandemic.

Both agencies have highlighted that Air France-KLM is one of the largest global airline groups with leading positions at major hubs, benefitting from one of the world’s largest and most diversified network as well as a full service offering with MRO and Cargo businesses combined.

The live event will start at 2:00pm CET and can be accessed via the following link: https://www.yuca.tv/en/air-france-klm/investor-day-2023

Documentation will be available on the Air France-KLM website ( www.airfranceklm.com ) on December 14, 2023, from 8.30am CET.

Investors Relations

Michiel Klinkers                                  Marouane Mami                                                                                

[email protected]         [email protected]

Website: www.airfranceklm.com

• PR - Air France-KLM Investor day

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Q3 2023 - Air France-KLM - Press release

October 27, 2023

• Group capacity at 94% compared to 2019 with load factor at 90%
• Group revenues at €8.7bn, up 7% compared to last year
• Operating result at €1.3bn with an operating margin at 15.5%
• Adjusted operating free cash flow at -€0.4bn driven by seasonal reversal of working capital and cash at hand at €10.2bn (including RCF)
• Net debt down by €1.3bn, compared to end of 2022 leading to a Net debt/EBITDA ratio of 1.1x
• Net income at €0.9bn, up €0.5bn compared to last year and further supporting equity restoration
• Air France-KLM to take up to a maximum 19.9% non-controlling stake in the share capital of the reorganized SAS AB, subject to approvals and conditions.
• Air France-KLM signed a definitive agreement for a quasi-equity financing for €1.3 billion, with a potential upsize €1.5 billion

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

“Air France-KLM delivered a solid quarter, marked by remarkable results. This performance was driven by strong summer demand. I would like to thank all our teams for their unfailing commitment during the season. Throughout the quarter, we also made significant progress on our sustainable strategic roadmap. Our landmark order for 50 Airbus A350 aircraft will significantly accelerate the renewal of our long-haul fleet, with more fuel-efficient, cost-effective and quieter aircraft. This new order represents a multi-billion investment to our sustainability roadmap, coming on top of previous orders for new generation widebody and narrowbody aircraft, and is complementary to our Sustainable Aviation Fuel commitments. It confirms our ambition to reach 64% of next generation aircraft by 2028 and is another major step towards our target of reducing our CO 2 emissions per passenger kilometer by 30% by 2030. We have also continued our efforts to further restore our equity, while leveraging the value of the Group's assets, as illustrated by a non-dilutive financing agreement of our Flying Blue Loyalty program. Finally, we initiated a process to acquire up to 19.9% in SAS, with an option to increase our share after two years. By investing in SAS, we intend to enhance our offer and connectivity in the Nordics.”

Strong summer demand resulting in a record operating profit in Q3

In the third quarter, revenues were up +8.9% at a constant currency compared to Q3 2022, driven by a strong summer demand. The operating result rose by €318 million supported by a combination of an increase in capacity (+6%), a higher passenger load factor (+1.3 pt) and a continued high passenger yield (+1.8%). This strong performance enabled the Group to offset the decrease of Cargo revenues and the inflation. As a consequence, the operating margin stood at 15.5%, a significant improvement of +2.9pt compared to last year.

Net income stood at €931 million, up by €471 million, further supporting the equity restoration.

The adjusted operating free cash flow decreased to -€434 million due to seasonality in the ticket sales. The net debt ended at €5.0 billion, an improvement of €1.3 billion compared to year end 2022.

Passenger unit revenue driving the group unit revenue increase

In the third quarter 2023, Air France-KLM welcomed 26.9 million passengers which is 7.6% above previous year. As capacity increased by 6.0% and traffic grew by 7.6%, the load factor increased by 1.3 points compared to last year.

The Group reached a very strong group passenger unit revenue per ASK, up +3.3% compared to last year. This increase was driven by an increase in load factor on the Long-haul, Short & Medium-haul and Transavia , and an increase in yield on the North Atlantic, Africa , Caribbean & Indian Ocean and Short & Medium-haul.

Group unit cost per ASK at constant fuel and constant currency is up 3.6% versus last year (3.4% excluding furlough), showing an improvement compared to Q2 2023 and in line with the trajectory announced during the previous results presentation. Group unit cost per ASK increase was driven by an increase in salary cost, which was partly compensated by a higher productivity, profit sharing and flight related cost. The change year-over-year in Group’s unit cost per ASK is expected to further decrease in the fourth quarter and the low-single digit increase outlook provided remains unchanged.

Equity restoration: Air France-KLM and Apollo Global Management sign a definitive agreement for a quasi-equity financing for €1.3 billion, with a potential upsize to €1.5 billion

On October 26 th, 2023, Air France-KLM and Apollo Global Management (NYSE: APO) announced having signed a definitive agreement between Apollo-managed funds and entities and a dedicated operating affiliate of Air France-KLM regarding a €1.3 billion financing, accounted as quasi-equity under IFRS, with the option for Apollo to increase the nominal amount up to €1.5 billion in total, prior to closing.

This dedicated operating affiliate of Air France-KLM will hold the trademark and most of the commercial partners contracts related to Air France and KLM’s joint loyalty program (Flying Blue). The affiliate will become the exclusive issuer of miles for the airlines of the Group and partners, enabling Flying Blue’s scalability and enhancing its growth prospects.

Under the agreement, Apollo-managed funds will subscribe to perpetual bonds issued by this dedicated operating affiliate. The financing will be accounted as equity under IFRS and is non-dilutive to shareholders. The structure is similar to two previous financings raised by Air France on its pool of spare engines in July 2022 and its maintenance activity components in July 2023 .

This transaction will allow Air France-KLM to make an additional step towards its commitment to restore its IFRS equity and strengthen its balance sheet, in addition to net profit generation.

The perpetual bonds will bear a coupon of 6.4% for the first four years, with the ability to redeem with an overall financing cost of 6.75% on the first call date.

Air France-KLM will continue to manage and operate its loyalty program Flying Blue, and Air France and KLM will keep full ownership rights of their customer database.

The agreed structure will incur no changes for Flying Blue members. It will not affect social aspects for Air France, KLM or Air France-KLM employees’ contracts.

Air France-KLM to team up with SAS AB through equity and commercial cooperation

On October 3 rd, 2023, Air France-KLM announced its intention to take up to a maximum 19.9% non-controlling stake in the share capital of the reorganized SAS AB, subject to approvals and conditions. Via this minority stake, the Group’s ambitions is to enhance its footprint in Scandinavian markets through a commercial cooperation between its airlines and SAS AB.

Should this transaction be approved and all the other conditions (including regulatory clearances and cancellation of all existing shares of stock of SAS AB) be satisfied, the Consortium, together with the Danish State, would invest USD 1.175 billion of which USD 475 million in common shares and USD 700 million in the form of secured convertible bonds.

Air France-KLM’s investment would represent a total of USD 144.5 million , of which USD 109.5 million would be invested in common shares and USD 35 million would be provided in the form of secured convertible bonds. Definitive agreements between the members of the Consortium would include specific provisions whereby Air France-KLM’s stake may be increased such that Air France-KLM may become a controlling shareholder, after a minimum of two years, subject to among other things, certain regulatory conditions and financial performance.

Air France-KLM’s investment will be in line with the Group’s medium-term outlook.

In parallel to the transaction, and subject to the satisfaction of certain conditions including SAS AB’s exit from Star Alliance, Air France-KLM will seek to establish a commercial cooperation between its airlines and SAS AB. In doing so Air France-KLM will strengthen its footprint in Scandinavian markets, where the SAS brand and loyalty program are well-established. Such commercial cooperation would benefit Scandinavian customers through extended connectivity and broader access to the worldwide network of Air France-KLM .

Air France-KLM launches a global employee share purchase plan

On September 28 th, 2023, Air France-KLM launched "Partners for the future", an employee share purchase plan offered to around 75.000 eligible employees (circa 95% of the group’s workforce) in around 20 countries.

The objective of this plan is to strengthen the link between Air France-KLM and its employees by giving them a long-term stake in the Group's objectives, performance and future success.

The proposed shares will be issued as part of a capital increase that may not exceed 3% of Air France-KLM's share capital. This operation is carried out in accordance with the 34th and 35th resolutions of the Annual General Meeting of June 7, 2023 .

Air France-KLM reverse share split and capital reduction

On August 31 st, 2023, Air France - KLM announced the completion of the reverse share split of all outstanding shares of the Company and the simultaneous acknowledgment of the capital reduction by reduction of the nominal value of each share, as decided by the Board of Directors at its meeting on 4 July 2023 and in accordance with the 36th and 37th extraordinary resolutions of the Combined General Meeting of 7 June 2023 .

These transactions result in:

• The exchange of 10 ordinary shares in the Company with a par value of €1 each for 1 new share with a par value of €1 (taking into account the simultaneous capital reduction reducing the par value of each new share from €10 to €1, i.e. a reduction of €9 per share allocated to the "share premium" account).
• The Company's share capital standing at 257,053,613 euros divided into 257,053,613 shares (ISIN code FR001400J770) with a par value of 1 euro each.

2023 OUTLOOK UNCHANGED

The Group expects the capacity in Available Seat Kilometers for Air France-KLM Group including Transavia at an index of:

• 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 cost 2

The Group expects a low single digit increase compared to 2022.

Full year 2023 net capex is estimated at 3.0 billion euros .

Business review

Network: Operating result more than doubled

Compared to the third quarter 2022, total revenues increased by +4.2% to €7,199 million. The operating result improved by €240 million and amounted to €1,091 million. The increase in revenues was driven by the network passenger business while the Cargo revenues declined compared to the third quarter last year due to a further normalization of the market.

Robust growth in unit revenue

Third quarter 2023 capacity in Available Seat Kilometers (ASK) was 4.6% higher than last year and at 89% of 2019 level, which is in line with the Group’s guidance provided during the second quarter 2023 results presentation (c.90% versus 2019). Higher traffic (+6.0%) than capacity growth has lead to an increase in load factor of 1.1 point, resulting in a total load factor of 89.4% while yield continued to rise (+4% against a constant currency).

This performance had a positive impact on Unit revenue per ASK which rose by 5.7% at a constant currency.

During the third quarter we observed per area the following trends:

North Atlantic Demand recovery continued to be driven by Point of Origin North America . Yield increased by 6% at a same capacity and load factor level (91%). Corporate traffic stood at 80% of 2019 levels.

Latin America Demand remained very strong over the summer, enabling to maintain yield performance versus high summer 2022 reference on traffic growth +10% (on capacity +9%) reaching a load factor at 93%.

Asia & Middle East Capacity in the third quarter has significantly increased versus 2022 by 49%, mainly driven by China and Japan . Nevertheless, this is still -33% below 2019 levels. Due to this significant increase in capacity, yield slightly decreased by -1% compared to last year (but still 39.5% above 2019 level), however load factor increased thanks to strong demand.

Caribbean & Indian Ocean The third quarter continued to show capacity reductions compared to 2022 (-24%) due to redeployment of fleet to other long-haul areas and a high comparison basis in 2022. This lower capacity pushed the load factor up to 90% and yield improved by 20%.

Africa Despite the geopolitical situation in Niger , Mali and Burkina Faso , the Group enjoyed continued strong traffic dynamics with load factor up 2 points compared to 2022. Robust yield at 4% above 2022.

Short and Medium-haul Capacity increased by +3% with different dynamics: KLM Medium Haul up +13% (impacted by operational issues last year), while Air France Medium Haul is stable and Air France domestic down -18%. The Group was able to increase the yield +3% on the back of a stable load factor at 85%.

Cargo: continued normalization of the activity translating in a decrease of unit revenues

Compared to last year, total revenues dropped by -32.8% (as a reminder, revenue decreased by -33.9% in Q2 2023). The traffic increased year over year by 0.1% on the back of a strong demand in 2022. The load factor was -1.4 point below 2022, due to the increased belly capacity. The yield declined as well resulting in a decrease in unit revenue per Available Ton Kilometer of -38.9% at constant currency. The decrease in unit revenue per ATK at constant currency has stabilized compared to 2022 (Q3 2023: -38.9%; YTD 2023: -38.3%).

The resumption of the passenger travel resulted in an increase in Available Ton Kilometers of 3.3% versus the third quarter of 2022. Furthermore, some operational issues of the Group’s full freighters resulted in a reduction in South America operations in order to restore reliable operational performance for our customers.

Transavia : Load factor up while capacity growth of 14%

Transavia’s capacity increased by 14.0%, traffic increased by 16.9%, and the number of passengers increased by 17.4% resulting in a load factor 2.2 points above the third quarter in 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 reached an operating result of €188 million despite the late inflow of new aircraft and wet lease cost to cover this delay. The forward booking load factor for the fourth quarter 2023 compared to last year is stable and the first quarter 2024 is at a higher level than the year before while capacity continues to grow.

Maintenance business: Operating margin above last year

Total revenues increased by 27.6% compared with the same quarter last year while third party revenues increased by 29.4% at constant currency, showing a robust recovery.

The operating margin in the third quarter stood at 6.0%, which is 0.4 point higher than in 2022 and almost in line with 2019 levels (6.1%).

Air France-KLM and Airbus entered into exclusive negotiations for the creation of a joint venture dedicated to Airbus A350 component support

On September 4 th, 2023, Air France-KLM and Airbus announced that Air France and Airbus have entered into exclusive negotiations to establish a long-term strategic partnership for Airbus A350 component support (supply chain management and repairs), as well as the creation of a worldwide shared-access pool of aircraft components.

The envisaged cooperation would take the form of a 50-50 joint venture between Air France and Airbus and involve the transfer of aircraft components assets belonging to both partners into the joint venture’s pool.

This exclusive partnership would entail a joint commercial offering between Air France Industries KLM Engineering & Maintenance and Airbus, aimed at better meeting the growing long-term maintenance needs of the Airbus A350 worldwide fleet (1,000 aircraft on order and 550 currently in service worldwide) through enhanced capacity, an expanded global footprint, and the development of innovative solutions.

The objective is to finalize the terms of a strategic partnership by the first half of 2024 in line with all compliance requirements, subject to approval by all relevant authorities.

Compared to the end of 2022 the group added three B787-10, two A350-900, sixteen B737-800, fourteen A220-300, four Embraer 195-E2 and one Embraer 190. The following aircraft left the fleet: three B737-700, two A321, one A320, five A319, three A318 and three CRJ-1000, as a result the fleet increased by twenty three 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 and announced recently:

Air France-KLM will place an order for 50 Airbus A350 family aircraft - with purchase rights for 40 additional aircraft - to accelerate the renewal of its long-haul fleet

On September 25 th, 2023, Air France-KLM announced that it plans to place a landmark aircraft order to pursue the renewal and rationalization of its long-haul fleet, to the benefit of the Group’s environmental and economic performance.

This Group order will cover 50 Airbus A350-900 and A350-1000 aircraft - with purchase rights for 40 additional aircraft - with first deliveries expected in 2026 through to 2030. This will be an evolutionary order, providing the Group with flexibility to allocate aircraft within its portfolio of airlines, according to market dynamics and local regulatory conditions.

These aircraft will replace previous-generation aircraft, namely Airbus A330 and older Boeing 777 aircraft. This new order will come in addition to an existing Air France-KLM order for 41 Airbus A350-900s for Air France, of which 22 have been delivered to date.

Air France-KLM will also be among the launch customers of the Airbus A350 Full Freighter version of the aircraft, having ordered 8 aircraft to renew and expand its cargo fleet.

Fleet renewal is the Group’s primary lever to immediately cut CO2 and noise emissions. Alongside the use of sustainable aviation fuel and eco-piloting techniques, it is one of the pillars of the Group's decarbonization trajectory, which aims for -30% CO2 emissions per passenger/km by 2030 compared to 2019. Since the 2000s, Air France-KLM has reduced its noise footprint by 40% and the Group continues to work with all its stakeholders to adapt its operations.

By 2028, the share of new generation aircraft in the Air France-KLM fleet will reach 64%, compared to 5% in 2019.

Strong profitability for both airlines

Air France Group

Air France performance is stemming from a strong performance of long-haul resulting in an increase of revenue of +7.5%. Operating result up +236 million euros compared to last year.

KLM’s revenue grew by +5.9% on the back of improved operations, although not optimal yet, while operating margin stood at 15.7%, representing an improvement of +2.0pt 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 results presentation is available at www.airfranceklm.com on October 27, 2023 from 7:15 am CET .

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on October 27, 2023 at 08.30 am CET .

To connect to the webcast, please use below link:

https://channel.royalcast.com/landingpage/airfranceklm/20231027_1/

Income statement

* Restated figures include the change in accounting principles for CO2 quotas

Consolidated balance sheet

Statement of Consolidated Cash Flows from January 1 until September 30

* Restated figures include the change in accounting principles for CO2 quotas (1) Participation to warrants issue of GOL 26 September

Return on capital employed (ROCE)

(1) Proforma figures include restatement related to change in accounting scheme of ETS quotas (see financial statements of the period).

(2) Compared to previous periods, the working capital has been restated to exclude the report of social & fiscal charges granted consequently to Covid.

(3) Excluding the report of social & fiscal charges granted consequently to Covid.

Adjusted operating free cash flow

Bridge from EBITDA to Self-financing capacity

Unit cost: net cost per ASK

Group fleet at 30 September 2023

2023 TRAFFIC

Passenger network activity

Transavia activity

Total Group passenger activity

Cargo activity

Air France activity

KLM activity

1 change is nominal and not corrected for fuel price 2 against a constant fuel price, constant currency and excluding furlough contribution 3 Excluding Transavia

• Q3 2023 - AFKLM - Press release

In This Story

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Commitments.

About Air France

© air france

Since it was founded in 1933, Air France has offered its passengers a unique experience on board its aircraft, which serve a vast network worldwide. Structured around three main activities - passenger transport, cargo and aircraft maintenance - Air France has become a major player in the airline industry thanks to the hard work and commitment of its employees. As an Ambassador for France, Air France showcases the talents of our country while offering excellent service. In 2004, Air France, KLM Royal Dutch Airlines and Transavia have formed the Air France-KLM group. The combination of their strengths makes it the leading group in terms of intercontinental traffic from Europe.

WE ARE AIR FRANCE

Air France governance is structured around two bodies, the Board of Directors comprising 15 directors on one side and the Executive Committee comprising 11 operational managers of the company and its subsidiaries.

© Air France

Key figures

worldwide destinations served by Air France KLM Martinair Cargo

SUSTAINABILITY

CO₂ emissions per passenger- kilometre by 2030 vs 2019

ground staff

ALLIANCES AND PARTNERS

Thanks to its presence within the SkyTeam global alliance and the transatlantic joint venture, Air France is significantly enhancing its global network for the benefit of its passengers.

Renowned the world over for the quality of its offering, the structure and density of its network and its efforts in digital innovation and customer service, Air France is regularly recognised with awards in a variety of fields and in all regions of the world.

THE ART OF TRAVEL, À LA FRANÇAISE

Air France aims to offer the best of France to its customers at every step of their journey, taking elegance to new heights. With ever more comfortable travel cabins, French gastronomy prepared by outstanding chefs, curated airport lounges crafted by world-renowned designers and architects, uniforms by exceptional couturiers, and complimentary champagne in all cabins, Air France has been sharing French excellence with the world since 1933. 

OUR HISTORY: LEGEND

The history of Air France is inextricably linked with the history of civil aviation and its technical and operational advances. From the very first flights in the 1910s to Concorde, tremendous feats have been accomplished by a few hundred men and women with a great love for far-off places and innovation. As the capacity of its aircraft has increased, Air France has always prioritised the safety and comfort of its customers and excellent on-board services. Thanks to its assets, the airline is now part of AFKL, the world’s leading airline group.

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Air France Fondation

airfrance.fr

Air France-KLM

Air France & KLM Cargo

AFI KLM E&M

AF KLM IT Solutions

Air France Shopping

Air France Travel Guide

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Our recruitment offers

Partenariats Air France

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Credit investor presentation

A diverse and well-balanced funding strategy

On September 6th 2022, Moody’s decided for the first time since the Airgas acquisition in 2016 to upgrade the Air Liquide Group credit rating to “A2” from “A3” with a “stable” outlook. Following Standard & Poor's upgrade of Air Liquide’s credit rating in July 2021, Moody’s decision acknowledges that the Group's level of indebtedness has been reduced in 5 years to the level prior to this acquisition. It also reflects the widely demonstrated resilience of Air Liquide's business model. In May 2023, the European agency Scope Ratings issued an “A” rating to Air Liquide with a "positive" outlook. Scope's first rating of the Group, is once again attesting the overall confidence in the Group's solid profitability.

Air Liquide’s financing principles

Our financing strategy consists in the following principles:

• Diversification  of funding sources and debt maturities to minimize refinancing risk
• Backing  of commercial paper issues with solid lines of credit
• Hedging  of interest rate risks to ensure visibility of funding costs in line with long-term investment decisions
• Funding  investments in the currency of operating cash flows to ensure a natural foreign exchange hedge
• Centralizing  excess cash through Air Liquide Finance, a wholly owned entity of Air Liquide S.A.

FY2023 Credit Investors Presentation

€9,221m net debt 2023, €10,846m gross debt 2023, 36.8% gearing ratio, 85% financial market debt, a well balanced mix of funding sources and maturities.

Air Liquide diversifies its financing sources by accessing various debt markets. In the long run, the Group funds itself with bond issues, usually through its Euro Medium-Term Notes programme (EMTN), targeting European, American, as well as Japanese markets. Over the short term, Air Liquide has recourse to Negotiable European Commercial Paper (NEU CP) and US Commercial Paper. The Group has also access to a Syndicated Credit Facility and several bilateral credit facilities with the Group’s core banking partners for general corporate purposes.

In certain special circumstances, (for instance: regulatory constraints, high country risk or partnership), the Group reduces its exposure by setting up a specific funding for its subsidiaries with local bank market.

Air Liquide diversifies its funding sources and spreads maturities over several years to minimize refinancing risks related to debt repayment schedules.

Additionally, the Group’s operations generate a regular cash flow that helps to reduce these risks.

At the end of 2023, the average maturity of the Group's debt was 5.5 years, slightly lower than the 2022 level (5.9 years).

Debt by currency

As of December 31, 2023

Financing structure

Debt structure.

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Reporting by Joanna Plucinska; editing by Mark Potter, Jason Neely and Susan Fenton

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Thomson Reuters

Joanna reports on airlines and travel in Europe, including tourism trends, sustainability and policy. She was previously based in Warsaw, where she covered politics and general news. She wrote stories on everything from Chinese spies to migrants stranded in forests along the Belarusian border. In 2022, she spent six weeks covering the war in Ukraine, with a focus on the evacuation of children, war reparations and evidence that Russian commanders knew of sexual violence by their troops. Joanna graduated from the Columbia Journalism School in 2014. Before joining Reuters, she worked in Hong Kong for TIME and later in Brussels reporting on EU tech policy for POLITICO Europe.

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