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Q3 2024 results press release

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Air France-KLM reported Q3 2024 results with an operating result of €1.18 billion and a 13.1% operating margin. Group revenues increased by 3.7% to €9.0 billion, with capacity up 3.6% and load factor at 89%. The quarter was impacted by the Olympic Games, resulting in a €160 million reduction in passenger unit revenue. Unit costs increased by 3.4% compared to 2023, driven by higher staff, operation, and maintenance costs at KLM. The Group maintained strong liquidity with €9 billion cash at hand and a Net debt/EBITDA ratio of 1.7x. The company successfully completed the acquisition of a 19.9% stake in SAS AB.

Air France-KLM ha riportato i risultati del terzo trimestre 2024 con un risultato operativo di 1,18 miliardi di euro e un margine operativo del 13,1%. I ricavi del gruppo sono aumentati del 3,7% a 9,0 miliardi di euro, con una capacità cresciuta del 3,6% e un fattore di carico dell'89%. Il trimestre è stato influenzato dai Giochi Olimpici, portando a una riduzione delle entrate unitari dei passeggeri di 160 milioni di euro. I costi unitari sono aumentati del 3,4% rispetto al 2023, a causa di costi più elevati per il personale, le operazioni e la manutenzione presso KLM. Il gruppo ha mantenuto una solida liquidità con 9 miliardi di euro in cassa e un rapporto debito netto/EBITDA di 1,7x. L'azienda ha completato con successo l'acquisizione di una partecipazione del 19,9% in SAS AB.

Air France-KLM presentó resultados del tercer trimestre de 2024 con un resultado operativo de 1.18 mil millones de euros y un margen operativo del 13.1%. Los ingresos del grupo aumentaron un 3.7% a 9.0 mil millones de euros, con una capacidad incrementada en un 3.6% y un factor de carga del 89%. El trimestre se vio afectado por los Juegos Olímpicos, lo que resultó en una reducción de 160 millones de euros en los ingresos unitarios de pasajeros. Los costos unitarios aumentaron un 3.4% en comparación con 2023, impulsados por el aumento de los costos de personal, operación y mantenimiento en KLM. El grupo mantuvo una sólida liquidez con 9 mil millones de euros en efectivo y una relación de deuda neta/EBITDA de 1.7x. La empresa completó con éxito la adquisición de una participación del 19.9% en SAS AB.

에어 프랑스-킬름(East France-KLM)은 2024년 3분기 결과를 보고하며 운영 결과는 11억 8천만 유로, 운영 마진은 13.1%입니다. 그룹 수익은 3.7% 증가하여 90억 유로에 달하며, 용량은 3.6% 증가하고 적재율은 89%입니다. 이번 분기는 올림픽의 영향을 받아 승객 단위 수익이 1억 6천만 유로 감소했습니다. 단위 비용은 2023년 대비 3.4% 증가했으며, 이는 KLM에서 직원, 운영 및 유지 관리 비용이 증가했기 때문입니다. 그룹은 90억 유로의 현금을 보유하여 강력한 유동성을 유지했으며, 순부채/EBITDA 비율은 1.7배입니다. 회사는 SAS AB에서 19.9% 지분 인수를 성공적으로 완료했습니다.

Air France-KLM a publié ses résultats du troisième trimestre 2024 avec un résultat d'exploitation de 1,18 milliard d'euros et une marge d'exploitation de 13,1%. Les revenus du groupe ont augmenté de 3,7% pour atteindre 9,0 milliards d'euros, avec une capacité en hausse de 3,6% et un coefficient de remplissage de 89%. Le trimestre a été affecté par les Jeux Olympiques, entraînant une réduction de 160 millions d'euros des revenus unitaires passagers. Les coûts unitaires ont augmenté de 3,4% par rapport à 2023, en raison de l'augmentation des coûts de personnel, d'exploitation et de maintenance chez KLM. Le groupe a maintenu une solide liquidité avec 9 milliards d'euros de liquidités et un ratio dette nette/EBITDA de 1,7x. L'entreprise a réussi à finaliser l'acquisition d'une participation de 19,9% dans SAS AB.

Air France-KLM hat die Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Betriebsergebnis von 1,18 Milliarden Euro und einer Betriebsmarge von 13,1%. Die Umsätze der Gruppe stiegen um 3,7% auf 9,0 Milliarden Euro, mit einer Kapazität, die um 3,6% zunahm und einer Auslastung von 89%. Das Quartal wurde von den Olympischen Spielen beeinflusst, was zu einem Rückgang der Passagier-Einheitserlöse um 160 Millionen Euro führte. Die Stückkosten stiegen im Vergleich zu 2023 um 3,4%, angetrieben von höheren Personal-, Betriebs- und Wartungskosten bei KLM. Die Gruppe hielt eine starke Liquidität mit 9 Milliarden Euro Bargeld zur Verfügung und einem Verhältnis von Nettoverschuldung zu EBITDA von 1,7x. Das Unternehmen hat erfolgreich den Erwerb eines 19,9% Anteils an SAS AB abgeschlossen.

Positive
  • Revenue growth of 3.7% year-over-year to €9.0 billion
  • Strong liquidity position with €9 billion cash at hand
  • Healthy operating margin of 13.1%
  • Load factor maintained at robust 89%
  • Cargo unit revenues increased by 6.3% at constant currency
Negative
  • Operating result declined by €162 million year-over-year
  • €160 million negative impact from Olympic Games on passenger revenue
  • Unit costs increased 3.4%, above initial 2% guidance
  • Net Debt increased to €6.7 billion from €5.0 billion in December 2023
  • Operating free cash flow declined to €28 million

xx

THIRD QUARTER 2024

November 7, 2024

Operating result stable at €1.2 billion excluding Olympic Games impact

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

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

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

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

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

Q3 Group unit revenue broadly stable

 Third QuarterYear to date
 2024changechange
constant currency
2024changechange
constant currency
Group Passengers (thousands)27,855+3.5% 74,470+4.6% 
Group Capacity (ASK m)87,795+3.6% 241,861+4.1% 
Traffic (RPK m)78,367+3.1% 212,570+4.0% 
Group Passenger load factor89.3%-0.4pt 87.9%-0.1pt 
Passenger unit revenue per ASK (€ cts)8.78-1.0%-0.8%8.22-0.2%+0.3%


 Third QuarterYear to date
 2024changechange
constant currency
2024changechange
constant currency
Revenues (€m)8,979+3.7%+3.8%23,582+4.3%+4.7%
EBITDA (€m)1,896-97-653,241-366-271
Operating result (€m)1,180-162-1301,204-565-469
Operating margin (%)13.1%-2.4pt-2.0pt5.1%-2.7pt-2.3pt
Net income (€m)824-122 510-711 
Group unit revenue per ASK (€cts)9.32-0.7%-0.6%8.79-1.1%-0.6%
Group unit cost at constant fuel, constant currency and excluding ETS7.97 +3.4%8.29 +3.0%


 30 September 202431 Dec 2023
Operating Free cash flow (€m)28 
Adj. recurring operating free cash flow* (€m)23 
Net Debt (€m)6,6985,041
EBITDA trailing 12 months (€m)3,8424,208
Net Debt/EBITDA ratio1.7x1.2x

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

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

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

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

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

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

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

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

Cash

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

The net capex amounted to €2.5 billion.

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

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

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

Sustainability

Transition plan and trajectory

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

Sustainability key performance measures:

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

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

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

 30 September 202430 September 2023Change
New generation fleet224%19%+5pt

More Sustainable Aviation Fuel (SAF):

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

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

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

2024 outlook

Capacity

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

Unit cost3

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

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

Capex

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

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

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

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

The Potential FY 2025 impact:

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

Schiphol Airport tariff increase as of April 2025

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

Business review

Network result

Network

 
Third QuarterYear to date
2024changechange
constant currency
2024changechange
constant currency
Traffic revenues (€m)7,047+1.8% 18,805+1.6% 
Total revenues (€m)7,351+2.0% 19,646+1.7% 
Salaries and related costs (€m)-1,723+10.5% -5,002+9.1% 
Aircraft fuel, excl. ETS (€m)-1,639-1.5% -4,753-0.3% 
Other operating expenses (€m)-2,552+7.0% -7,367+7.0% 
EBITDA (€m)1,436-10.1% 2,524-18.0% 
Depreciation & Amortization (€m)-537+5.9% -1,535+6.2% 
Operating result (€m)899-192-156990-644-543
Operating margin (%)12.2%-2.9 pt 5.0%-3.4 pt 

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

Passenger network unit revenue impacted by Olympic Games

Passenger network

 
Third QuarterYear to date
2024changechange
constant currency
2024changechange
constant currency
Passengers (thousands)20,499+3.3% 56,261+3.5% 
Capacity (ASK m)73,465+3.4% 206,270+3.3% 
Traffic (RPK m)65,526+3.2% 180,744+3.4% 
Load factor89.2%-0.2pt 87.6%+0.1pt 
Total passenger revenues (€m)6,783+2.1%+2.3%17,959+2.9%+3.4%
Traffic passenger revenues (€m)6,576+1.5%+1.6%17,431+2.5%+3.0%
Unit revenue per ASK (€ cts)8.95-1.9%-1.8%8.45-0.8%-0.2%

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

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

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

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

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

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

Caribbean & Indian Ocean

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

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

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

Cargo: Strong Q3 Unit revenues

Cargo business

 
Third QuarterYear to date
2024changechange
constant currency
2024changechange
constant currency
Tons (thousands)226+3.5% 661+3.3% 
Capacity (ATK m)3,707+1.5% 10,724+2.1% 
Traffic (RTK m)1,687+3.1% 4,936+3.3% 
Load factor45.5%+0.7pt 46.0%+0.5pt 
Total Cargo revenues (€m)561+0.6%+1.1%1,669-9.2%-8.3%
Traffic Cargo revenues (€m)471+7.3%+7.7%1,374-8.5%-7.7%
Unit revenue per ATK (€cts)12.74+5.9%+6.3%12.83-10.4%-9.6%

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

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

Transavia: Q3 Operating margin improvement despite Olympic Games impact

Transavia

 
Third QuarterYear to date
2024change2024change
Passengers (thousands)7,356+4.1%18,208+8.0%
Capacity (ASK m)14,330+4.5%35,591+8.7%
Traffic (RPK m)12,841+2.7%31,826+7.4%
Load factor89.6%-1.5pt89.4%-1.1pt
Unit revenue per ASK (€cts)7.93+5.0%6.90+5.3%
Unit cost per ASK (€cts)6.35+2.9%6.65+2.4%
     
Total Passenger revenues (€m)1,118+10.3%2,424+15.2%
Salaries and related costs (€m)-198+19.0%-543+16.9%
Aircraft fuel, excl. ETS (€m)-238-6.4%-608+2.5%
Other operating expenses (€m)-383+16.9%-968+15.1%
EBITDA (€m)300+12.6%305+48.5%
Depreciation & Amortization (in €m)-75-4.6%-219+15.8%
Operating result (€m)225+3786+70
Operating margin (%)20.1%+1.6pt3.6%+2.8pt
 

 
    

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

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

Maintenance business: Third party revenues continue to grow

Maintenance

 
Third QuarterYear to date
2024Change2024Change
Total Revenues (€m)1,232+17.0%3,657+20.5%
o/w Third party revenues (€m)507+16.0%1,508+26.6%
External expenses (€m)-776+16.1%-2,378+23.3%
Salaries and related costs (€m)-289+10.2%-879+10.7%
EBITDA (€m)167+36.0%400+28.6%
Depreciation & Amortization (€m)-110+82.5%-276+48.5%
Operating result (€m)58-5123-1
Operating margin (%)4.7%-1.3pt3.4%-0.7pt

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

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

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

Air France Group

 Third QuarterYear to date
 2024change2024change
Revenue (in €m)5,543+3.1%14,377+2.9%
Salaries and related costs (in €m)-1,418+9.4%-4,044+9.2%
Aircraft fuel, excl. ETS (in €m)-1,150-1.0%-3,207-0.1%
Other operating expenses (in €m)-1,793+5.0%-5,173+8.1%
EBITDA (in €m)1,183-261,954-313
Depreciation & Amortization (in €m)-451+12.0%-1,276+10.0%
Operating result* (in €m)732-74678-429
Operating margin (%)13.2%-1.8pt4.7%-3.2pt

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

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

KLM unit revenue improvement more than offset by unit cost development

KLM Group

 

 
Third QuarterYear to date
2024change2024change
Revenue (in €m)3,549+3.6%9,553+5.5%
Salaries and related costs (in €m)-973+15.0%-2,936+13.0%
Aircraft fuel, excl. ETS (in €m)-728-3.8%-2,156-0.1%
Other operating expenses (in €m)-1,189+14.7%-3,336+12.8%
EBITDA (in €m)660-1271,125-220
Depreciation & Amortization (in €m)-2646.6%-760+12.2%
Operating result* (in €m)396-143365-303
Operating margin (%)11.1%-4.6pt3.8%-3.6pt

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

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

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

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

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

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

Continued momentum for Flying Blue Miles

Flying Blue Miles

 

 
Third QuarterYear to date
2024change2024change
Revenue (in €m)200n.a.604n.a.
Operating result (in €m)55n.a.156n.a.
Operating margin (%)27.5%n.a.25.8%n.a.

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

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

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

******

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

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

To connect to the webcast, please use below link:

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

Investor Relations Press Office
Michiel KlinkersMarouane Mami+33 1 41 56 56 00
Michiel.klinkers@airfranceklm.commarouane.mami@airfranceklm.commail.mediarelations@airfranceklm.com

Income statement

 Third QuarterYear to date
in € million20242023Variation20242023Variation
  restated *    
Revenues from ordinary activities8,9798,660        4        %23,58222,612        4        %
Aircraft fuel-1,878-1,918        -2        %-5,363-5,360        0        %
Carbon emission-66-57        16        %-191-139        37        %
Chartering costs-133-167        -20        %-380-410        -7        %
Landing fees and air routes charges-569-539        6        %-1,545-1,458        6        %
Catering-253-225        12        %-686-618        11        %
Handling charges and other operating costs-560-499        12        %-1,534-1,393        10        %
Aircraft maintenance costs-781-585        34        %-2,379-1,831        30        %
Commercial and distribution costs-256-268        -4        %-810-785        3        %
Other external expenses-495-464        7        %-1,488-1,377        8        %
Salaries and related costs-2,401-2,146        12        %-6,997-6,311        11        %
Taxes other than income taxes-41-40        2        %-137-133        3        %
Capitalized production301224        34        %1,029758        36        %
Other income and expenses4917        188        %14052        169        %
EBITDA1,8961,993        -5        %3,2413,607        -10        %
Amortization, depreciation and provisions-716-651        10        %-2,037-1,838        11        %
Income from current operations1,1801,342        -12        %1,2041,769        -32        %
Sales of aircraft equipment105        100        %2533        -24        %
Other non current income and expenses-3        -100        %-11811nm
Income from operating activities1,1901,344        -11        %1,1111,813        -39        %
Interests expenses-157-148        6        %-471-443        6        %
Income from cash & cash equivalent6767        0        %236176        34        %
Net cost of financial debt-90-81        11        %-235-267        -12        %
Other financial income and expenses14-168nm-198-156        27        %
Income before tax1,1141,095        2        %6781,390        -51        %
Income taxes-300-155        94        %-181-176        3        %
Net income of consolidated companies814940        -13        %4971,214        -59        %
Share of profits (losses) of associates106        67        %137        86        %
Net Income for the period824946        -13        %5101,221        -58        %
Net income - Non controlling interests4415        193        %13031nm
Net income - Group part780931        -16        %3801,190        -68        %

Consolidated balance sheet

Assets September 30, 2024December 31, 2023
(in € million)  
Goodwill224224
Intangible assets1,1321,128
Flight equipment12,60711,501
Other property, plant and equipment1,5001,431
Right-of-use assets6,6525,956
Investments in equity associates240129
Pension assets8545
Other non-current financial assets1,2901,262
Non-current derivatives financial assets115148
Deferred tax assets643698
Other non-current assets151153
Total non-current assets24,63922,675
Other current financial assets1,1551,292
Current derivatives financial assets46122
Inventories948853
Trade receivables2,2192,152
Other current assets1,2611,120
Cash and cash equivalents4,5536,194
Assets held for sale7782
Total current assets10,25911,815
Total assets        34,898                34,490        


Liabilities and equitySeptember 30, 2024December 31, 2023
(in € million)  
Issued capital        263                263        
Additional paid-in capital        7,560                7,560        
Treasury shares        -24                -25        
Perpetual        1,065                1,076        
Reserves and retained earnings        -10,585                -10,925        
Equity attributable to equity holders of Air France-KLM        -1,721                -2,051        
Perpetual        2,584                2,524        
Reserves and retained earnings        31                27        
Equity attributable Non-controlling interests        2,615                2,551        
Total equity        894                500        
Pension provisions        1,678                1,685        
Non-current return obligation liability and other provisions        4,007                3,805        
Non-current financial liabilities        7,024                7,538        
Non-current lease debt        4,034                3,581        
Non-current derivatives financial liabilities        86                56        
Deferred tax liabilities        7                —        
Other non-current liabilities1,0281,376
Total non-current liabilities17,86418,041
Current return obligation liability and other provisions        1,050                1,079        
Current financial liabilities        1,577                1,664        
Current lease debt        875                848        
Current derivatives financial liabilities        312                139        
Trade payables        2,547                2,447        
Deferred revenue on ticket sales        4,345                3,858        
Frequent flyer programs        886                899        
Other current liabilities        4,547                5,002        
Bank overdrafts113
Total current liabilities16,14015,949
Total equity and liabilities        34,898                34,490        

Statement of Consolidated Cash Flows from January 1 until September 30

Period from January 1 to September 3020242023
(in € million) restated*
Net income        510                1,221        
Amortization, depreciation and operating provisions        2,037                1,839        
Financial provisions        212                157        
Cost of net debt        235                267        
Loss (gain) on disposals of tangible and intangible assets        -31                -54        
Loss (gain) on disposals of subsidiaries and associates        -2                –        
Derivatives – non monetary result        19                -6        
Unrealized foreign exchange gains and losses, net        -97                24        
Share of (profits) losses of associates        -13                -7        
Deferred taxes        99                78        
Impairment                        2        
Other non-monetary items        21                -42        
Cash flow from operating activities before change in working capital        2,990                3,479        
(Increase) / decrease in inventories        -106                -81        
(Increase) / decrease in trade receivables        -44                -491        
Increase / (decrease) in trade payables        102                324        
Increase / (decrease) in advanced ticket sales        476                608        
Change in other assets and liabilities        -850                27        
Change in working capital requirement        -422                387        
CASH-FLOW FROM OPERATING ACTIVITIES        2,568                3,866        
Acquisition of subsidiaries, of shares in non-controlled entities        -92        -2
Proceeds on disposal of subsidiaries, of shares in non-controlled entities        8                –        
Purchase of property plant and equipment and intangible assets         -2,931                -2,280        
Proceeds on disposal of property plant and equipment and intangible assets         391                276        
Interest received        221                151        
Dividends received        2                3        
Decrease (increase) in net investments, more than 3 months        137                112        
Acquisition of warrants                        -12        
CASH-FLOW USED IN INVESTING ACTIVITIES        -2,264                -1,752        
Increase of equity paid by non controlling interests                        2        
Payments to acquire treasury shares                        -1        
Purchase of minority interest without change of control        -1                –        
Issuance of perpetual                        1,226        
Repayment on perpetual                        -595        
Coupon on perpetual        -131                -87        
Issuance of debt        1,147                1,798        
Repayment on debt        -1,715                -3,116        
Payments on lease debts -666        -625        
New loans-103        -298        
Repayment on loans65        127        
Interest paid-532        -582        
Dividends paid-1        -90        
CASH-FLOW FROM FINANCING ACTIVITIES        -1,937                -2,241        
Effect of exchange rate and reclassification on cash and cash equivalents (net of cash acquired or sold)        4                -16        
Change in cash and cash equivalents and bank overdrafts        -1,629                -143        
Cash and cash equivalents and bank overdrafts at beginning of period         6,181                6,623        
Cash and cash equivalents and bank overdrafts at end of period         4,552                6,480        

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

Net debt

 

(in € million)
September 30, 2024December 31, 2023
Current and non-current financial liabilities8,6019,202
Current and non-current lease debt4,9094,429
Accrued interest-100-138
Deposits related to financial liabilities-100-107
Deposits related to lease debt-93-100
Derivatives impact on debt5-1
Gross financial liabilities (I)13,22213,285
Cash and cash equivalent4,5536,194
Marketable securities > 3 months9621,097
Bonds1,010966
Bank overdrafts-1-13
Net cash (II)6,5248,244
Net debt (I-II)6,6985,041

Recurring adjusted operating free cash flow

 Third QuarterYear to date
 2024202320242023
(in € million) restated * restated *
Net cash flow from operating activities9186362,5683,866
Purchase of property plant and equipment and intangible assets-864-884-2,931-2,280
Proceeds on disposal of property plant and equipment and intangible assets1865391276
Operating free cash flow72-183281,862
Exceptional payments made/(received) (1)122104972223
Interest paid and received-81-47-311-431
Payments on lease debts-224-204-666-625
Recurring adjusted operating free cash flow -111-330231,029

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

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

Return on capital employed (ROCE)

In € millionSep 30, 2024Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Sept 30, 2023Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
      restated4restated (1)restated (1)
Goodwill and intangible assets        1,356                1,354                1,349                1,352                1,331                1,339                1,351                1,352        
Flight equipment        12,607                12,197                11,646                11,501                11,296                10,957                10,954                10,614        
Other property, plant and equipment        1,500                1,456                1,438                1,431                1,379                1,389                1,372                1,375        
Right of use assets        6,652                6,479                5,902                5,956                5,596                5,480                5,304                5,428        
Investments in equity associates        240                134                134                129                127                121                122                120        
Financial assets excluding marketable securities, accrued interests and financial deposits        218                211                214                219                191                190                169                169        
Provisions, excluding pension, cargo litigation and restructuring        -4,553                -4,700                -4,523                -4,346                -4,481                -4,248                -4,255                -4,347        
WCR2        -7,422                -8,222                -8,284                -6,981                -7,804                -8,917                -8,696                -7,213        
Capital employed        10,598                8,909                7,876                9,261                7,635                6,311                6,321                7,498        
Average capital employed (A)9,1616,941
Adjusted results from current operations1,1481,902
- Dividends received-1-2
- Share of profits (losses) of associates1318
- Normative income tax-300-495
Adjusted result from current operations after tax (B)8601,423
ROCE, trailing 12 months (B/A)9.4%20.5%

Unit cost: net cost per ASK

 Third QuarterYear to date
 2024202320242023
Total operating expenses (in €m)7,7987,31722,37720,844
Carbon emission (ETS)-66-57-191-139
Total other revenues (in €m)-795-704-2,320-1,961
Net cost (in €m)6,9376,55619,86618,744
Capacity produced, reported in ASK87,81184,754241,903232,481
Net cost per ASK (in € cents per ASK)7.907.748.218.06
Gross change         2.2        %         2.1        %
Currency effect on net costs (in €m) 21 -4
Change at constant currency         1.9        %         2.1        %
Fuel price effect (in €m) -102 -208
Net cost per ASK at constant currency, constant fuel price and excluding ETS (in € cents per ASK)7.987.718.217.97
Change at constant currency and constant fuel price excluding ETS         3.4        %         3.0        %

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

Group fleet at 30 September 2024

Aircraft typeAF
(incl. HOP)5
KL
(incl. KLC & MP)
TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange / 31/12/23
B777-3004316 2114245959 
B777-2001815 28233333 
B787-91013 47122323 
B787-10 10 19 1010 
A380-8003  2 13  
A350-90035  4121935359
A330-300 5   555 
A330-200156 12 92121 
Total Long-Haul1246507244731891869
B737-900 5 5  55 
B737-800 3111036897141141 
B737-700 647 31010 
A321NEO 263 5887
A32115  8 71515 
A32036  43293636-1
A320NEO  6  6666
A31910  6 41010-3
A3186  4 266 
A220-30037  2421137375
Total Medium-Haul10444126971316427427414
Canadair Jet 10001  1  1  
Embraer 195 E2 18   181815-3
Embraer 1902328 174305150 
Embraer 175 17 314 1717 
Embraer 17013  10 31313 
Total Regional3763031185110095-3
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2    222 
Total Cargo240402660
          
Total2671761262047529056956120

2024 TRAFFIC

Passenger network activity

 Third QuarterYear to date
Total network airlines20242023variation20242023variation
Passengers carried (‘000s)20,49919,836+3.3%56,26154,366+3.5%
Revenue pax-kilometers (m RPK)65,52663,511+3.2%180,744174,778+3.4%
Available seat-kilometers (m ASK)73,46571,028+3.4%206,270199,689+3.3%
Load factor (%)89.2%89.4%-0.2pt87.6%87.5%+0.1pt
       
Long-haul      
Passengers carried (‘000s)7,1926,936+3.7%19,91019,245+3.5%
Revenue pax-kilometers (m RPK)53,32851,516+3.5%148,658143,395+3.7%
Available seat-kilometers (m ASK)59,18556,883+4.0%168,131162,204+3.7%
Load factor (%)90.1%90.6%-0.5pt88.4%88.4%0.0pt
       
North America      
Passengers carried (‘000s)2,8982,731+6.1%7,3676,975+5.6%
Revenue pax-kilometers (m RPK)20,39419,270+5.8%52,15649,577+5.2%
Available seat-kilometers (m ASK)22,64721,278+6.4%59,46156,371+5.5%
Load factor (%)90.1%90.6%-0.5pt87.7%87.9%-0.2pt
       
Latin America      
Passengers carried (‘000s)859878-2.2%2,5432,630-3.3%
Revenue pax-kilometers (m RPK)8,1318,355-2.7%24,16824,978-3.2%
Available seat-kilometers (m ASK)8,8678,984-1.3%26,71027,476-2.8%
Load factor (%)91.7%93.0%-1.3pt90.5%90.9%-0.4pt
       
Asia / Middle East      
Passengers carried (‘000s)1,5101,392+8.5%4,5303,877+16.8%
Revenue pax-kilometers (m RPK)12,11911,017+10.0%35,92730,246+18.8%
Available seat-kilometers (m ASK)13,40012,244+9.4%40,54634,407+17.8%
Load factor (%)90.4%90.0%+0.5pt88.6%87.9%+0.7pt
       
Africa      
Passengers carried (‘000s)1,0601,089-2.7%2,9613,124-5.2%
Revenue pax-kilometers (m RPK)6,4696,697-3.4%18,26419,177-4.8%
Available seat-kilometers (m ASK)7,2117,538-4.3%21,12622,277-5.2%
Load factor (%)89.7%88.8%+0.9pt86.5%86.1%+0.4pt
       
Caribbean / Indian Ocean      
Passengers carried (‘000s)866846+2.4%2,5092,639-4.9%
Revenue pax-kilometers (m RPK)6,2146,177+0.6%18,14319,417-6.6%
Available seat-kilometers (m ASK)7,0606,839+3.2%20,28821,673-6.4%
Load factor (%)88.0%90.3%-2.3pt89.4%89.6%-0.2pt
       
Short and Medium-haul      
Passengers carried (‘000s)13,30612,900+3.2%36,35135,121+3.5%
Revenue pax-kilometers (m RPK)12,19811,995+1.7%32,08631,383+2.2%
Available seat-kilometers (m ASK)14,28014,145+1.0%38,13937,485+1.7%
Load factor (%)85.4%84.8%+0.6pt84.1%83.7%+0.4pt

Transavia activity

 Third quarterYear to date
Transavia20242023variation20242023variation
Passengers carried (‘000s)7,3567,068+4.1%18,20816,853+8.0%
Revenue seat-kilometers (m RSK)12,84112,502+2.7%31,82629,637+7.4%
Available seat-kilometers (m ASK)14,33013,716+4.5%35,59132,753+8.7%
Load factor (%)89.6%91.2%-1.5pt89.4%90.5%-1.1pt

Total Group passenger activity

 Third quarterYear to date
Total Group20242023variation20242023variation
Passengers carried (‘000s)27,85526,904+3.5%74,47071,218+4.6%
Revenue pax-kilometers (m RPK)78,36776,013+3.1%212,570204,415+4.0%
Available seat-kilometers (m ASK)87,79584,744+3.6%241,861232,442+4.1%
Load factor (%)89.3%89.7%-0.4pt87.9%87.9%-0.1pt

Cargo activity

 Third quarterYear to date
Cargo20242023variation20242023variation
Revenue tonne-km (m RTK)1,6871,636+3.1%4,9364,779+3.3%
Available tonne-km (m ATK)3,7073,654+1.5%10,72410,501+2.1%
Load factor (%)45.5%44.8%+0.7pt46.0%45.5%+0.5pt

Air France activity

 Third quarterYear to date
Total Passenger network activity20242023variation20242023variation
Passengers carried (‘000s)11,67011,455+1.9%31,50231,744-0.8%
Revenue pax-kilometers (m RPK)40,44138,677+4.6%108,966105,074+3.7%
Available seat-kilometers (m ASK)45,78843,366+5.6%125,000120,074+4.1%
Load factor (%)88.3%89.2%-0.9pt87.2%87.5%-0.3pt
       
Long-haul      
Passengers carried (‘000s)4,6714,382+6.6%12,62511,967+5.5%
Revenue pax-kilometers (m RPK)33,78931,854+6.1%91,95087,001+5.7%
Available seat-kilometers (m ASK)37,85935,352+7.1%104,63098,517+6.2%
Load factor (%)89.2%90.1%-0.9pt87.9%88.3%-0.4pt
       
Short and Medium-haul      
Passengers carried (‘000s)6,9997,073-1.1%18,87719,778-4.6%
Revenue pax-kilometers (m RPK)6,6526,823-2.5%17,01618,073-5.8%
Available seat-kilometers (m ASK)7,9298,014-1.1%20,37121,556-5.5%
Load factor (%)83.9%85.1%-1.2pt83.5%83.8%-0.3pt
       
Cargo activity      
Revenue tonne-km (m RTK)839818+2.5%2,4452,397+2.0%
Available tonne-km (m ATK)2,1902,101+4.2%6,2105,940+4.6%
Load factor (%)38.3%39.0%-0.7pt39.4%40.4%-1.0pt

KLM activity

 Third quarterYear to date
Total Passenger network activity20242023variation20242023variation
Passengers carried (‘000s)8,8298,380+5.4%24,75922,621+9.5%
Revenue pax-kilometers (m RPK)25,08424,836+1.0%71,77769,705+3.0%
Available seat-kilometers (m ASK)27,67727,660+0.1%81,27179,614+2.1%
Load factor (%)90.6%89.8%+0.8pt88.3%87.6%+0.8pt
       
Long-haul      
Passengers carried (‘000s)2,5222,554-1.3%7,2857,278+0.1%
Revenue pax-kilometers (m RPK)19,53819,664-0.6%56,70856,395+0.6%
Available seat-kilometers (m ASK)21,32621,529-0.9%63,50263,686-0.3%
Load factor (%)91.6%91.3%+0.3pt89.3%88.6%+0.7pt
       
Short and Medium-haul      
Passengers carried (‘000s)6,3075,827+8.3%17,47415,343+13.9%
Revenue pax-kilometers (m RPK)5,5465,172+7.2%15,07013,310+13.2%
Available seat-kilometers (m ASK)6,3526,131+3.6%17,76915,928+11.6%
Load factor (%)87.3%84.4%+3.0pt84.8%83.6%+1.2pt
       
Cargo activity      
Revenue tonne-km (m RTK)848818+3.8%2,4912,382+4.6%
Available tonne-km (m ATK)1,5171,553-2.3%4,5144,561-1.0%
Load factor (%)55.9%52.6%+3.3pt55.2%52.2%+3.0pt



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

Attachment


FAQ

What was Air France-KLM's (AFLYY) operating result in Q3 2024?

Air France-KLM reported an operating result of €1,180 million in Q3 2024, with an operating margin of 13.1%.

How did the Olympic Games impact Air France-KLM's (AFLYY) Q3 2024 results?

The Olympic Games negatively impacted Air France-KLM's results by €160 million in passenger unit revenue, plus an additional €50 million one-time payment to Air France staff for successful operations during the event.

What was Air France-KLM's (AFLYY) revenue growth in Q3 2024?

Air France-KLM's revenues grew by 3.7% year-over-year to €9.0 billion in Q3 2024.

What is Air France-KLM's (AFLYY) current cash position as of Q3 2024?

Air France-KLM maintained €9.0 billion in cash at hand at the end of Q3 2024, with a Net Debt/EBITDA ratio of 1.7x.

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2.65B
125.10M
0.36%
0.05%
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