Q3 2024 results press release
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.
- 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
- 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 Underlying Group unit revenue trend favorable |
- Group capacity increased by
3.6% compared to last year with load factor at89% - Group revenues at
€9.0b n, up3.7% 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 at13.1% . 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
€9b n and Net debt/EBITDA ratio of 1.7x - Acquisition of a
19.9% non-controlling stake in the share capital of SAS AB successfully completed
Commenting on the results, Mr. Benjamin Smith, Group CEO, said:
“The third quarter revealed mixed trends for the Air France-KLM Group. Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements. These measures are aligned with the Group’s ongoing transformation efforts aimed at further enhancing overall performance.
Beyond their financial implications, the Olympic Games provided a unique platform to demonstrate the Group’s operational expertise and capabilities while offering unparalleled visibility for France as a destination. In the long term, this will be advantageous for the Group.
We also made further progress in our decarbonization initiatives, as evidenced by the signing of a major Sustainable Aviation Fuel (SAF) purchase agreement with TotalEnergies. This contract, one of the largest ever signed by the Group, highlights our commitment to fostering the development of SAF supply chains, which is a crucial lever in reducing our carbon footprint.”
Q3 Group unit revenue broadly stable
Third Quarter | Year to date | |||||
2024 | change | change constant currency | 2024 | change | change constant currency | |
Group Passengers (thousands) | 27,855 | + | 74,470 | + | ||
Group Capacity (ASK m) | 87,795 | + | 241,861 | + | ||
Traffic (RPK m) | 78,367 | + | 212,570 | + | ||
Group Passenger load factor | -0.4pt | -0.1pt | ||||
Passenger unit revenue per ASK (€ cts) | 8.78 | - | - | 8.22 | - | + |
Third Quarter | Year to date | |||||
2024 | change | change constant currency | 2024 | change | change constant currency | |
Revenues (€m) | 8,979 | + | + | 23,582 | + | + |
EBITDA (€m) | 1,896 | -97 | -65 | 3,241 | -366 | -271 |
Operating result (€m) | 1,180 | -162 | -130 | 1,204 | -565 | -469 |
Operating margin (%) | -2.4pt | -2.0pt | -2.7pt | -2.3pt | ||
Net income (€m) | 824 | -122 | 510 | -711 | ||
Group unit revenue per ASK (€cts) | 9.32 | - | - | 8.79 | - | - |
Group unit cost at constant fuel, constant currency and excluding ETS | 7.97 | + | 8.29 | + |
30 September 2024 | 31 Dec 2023 | |
Operating Free cash flow (€m) | 28 | |
Adj. recurring operating free cash flow* (€m) | 23 | |
Net Debt (€m) | 6,698 | 5,041 |
EBITDA trailing 12 months (€m) | 3,842 | 4,208 |
Net Debt/EBITDA ratio | 1.7x | 1.2x |
*IFRS Operating free cash flow corrected from the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period and payment of lease debt and interests paid and received
Third Quarter 2024: Operating result at
In the third quarter 2024, Air France-KLM welcomed 27.9 million passengers which is
The Group unit revenue per ASK was down -
The operating result was
The Group unit cost1 per ASK is up
The initially estimated
The additional 1.4 point unit cost was caused by difficult summer operations, mainly at KLM and Transavia, resulting in higher disruption cost (
Cash
For the first nine months, the Group reported an operating cash flow of
The net capex amounted to
Recurring adjusted operating free cash flow excluding deferred social charges and wage taxes and including lease debt and net interest payment amounted to +
The cash at hand at the end of September amounted to
On the first of July the Group redeemed fully the July 2021
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
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,
Compared to previous generation aircraft the A220 reduces CO2 emissions by
Since the end of December 2023 the following new generation aircraft were phased in, eight A350, five A320 Neo, seven A321 Neo, of which the first delivery to KLM in the third quarter, and five A220. In the same period the following old generation1 aircraft were phased out, one 737-800, three A319, one A320 and one CRJ-1000.
30 September 2024 | 30 September 2023 | Change | |
New generation fleet2 | +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
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
2024 outlook
Capacity
The Group expects its capacity in Available Seat Kilometers for Air France-KLM Group including Transavia to increase by
Unit cost3
For the full year 2024, the Group expects a unit cost increase of circa +
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
Business review
Network result
Network | Third Quarter | Year to date | ||||
2024 | change | change constant currency | 2024 | change | change constant currency | |
Traffic revenues (€m) | 7,047 | + | 18,805 | + | ||
Total revenues (€m) | 7,351 | + | 19,646 | + | ||
Salaries and related costs (€m) | -1,723 | + | -5,002 | + | ||
Aircraft fuel, excl. ETS (€m) | -1,639 | - | -4,753 | - | ||
Other operating expenses (€m) | -2,552 | + | -7,367 | + | ||
EBITDA (€m) | 1,436 | - | 2,524 | - | ||
Depreciation & Amortization (€m) | -537 | + | -1,535 | + | ||
Operating result (€m) | 899 | -192 | -156 | 990 | -644 | -543 |
Operating margin (%) | -2.9 pt | -3.4 pt |
Compared to the third quarter 2023, total revenues increased by +
Passenger network unit revenue impacted by Olympic Games
Passenger network | Third Quarter | Year to date | ||||
2024 | change | change constant currency | 2024 | change | change constant currency | |
Passengers (thousands) | 20,499 | + | 56,261 | + | ||
Capacity (ASK m) | 73,465 | + | 206,270 | + | ||
Traffic (RPK m) | 65,526 | + | 180,744 | + | ||
Load factor | -0.2pt | +0.1pt | ||||
Total passenger revenues (€m) | 6,783 | + | + | 17,959 | + | + |
Traffic passenger revenues (€m) | 6,576 | + | + | 17,431 | + | + |
Unit revenue per ASK (€ cts) | 8.95 | - | - | 8.45 | - | - |
During the third quarter 2024 capacity in Available Seat Kilometers (ASK) was
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
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
Latin America
Capacity was down
Asia & Middle East
Capacity in Q3 has significantly increased by
Caribbean & Indian Ocean
After Capacity decreases in the previous quarter, this quarter the capacity increased by
Africa
Strong yields on late bookings resulted in a yield increase of
Short and Medium-haul
Positive developments on capacity, yield and load factor in Europe. Despite the capacity increase by
Cargo: Strong Q3 Unit revenues
Cargo business | Third Quarter | Year to date | ||||
2024 | change | change constant currency | 2024 | change | change constant currency | |
Tons (thousands) | 226 | + | 661 | + | ||
Capacity (ATK m) | 3,707 | + | 10,724 | + | ||
Traffic (RTK m) | 1,687 | + | 4,936 | + | ||
Load factor | +0.7pt | +0.5pt | ||||
Total Cargo revenues (€m) | 561 | + | + | 1,669 | - | - |
Traffic Cargo revenues (€m) | 471 | + | + | 1,374 | - | - |
Unit revenue per ATK (€cts) | 12.74 | + | + | 12.83 | - | - |
During the third quarter 2024 capacity in Available Ton Kilometers (ATK) was +
Today’s air freight market is dynamic and Asia in particular is performing well driven by e-commerce and the Red sea disruption. In response to market dynamics, a part of the Group’s full freighter capacity is being redeployed to Asia.
Transavia: Q3 Operating margin improvement despite Olympic Games impact
Transavia | Third Quarter | Year to date | ||
2024 | change | 2024 | change | |
Passengers (thousands) | 7,356 | + | 18,208 | + |
Capacity (ASK m) | 14,330 | + | 35,591 | + |
Traffic (RPK m) | 12,841 | + | 31,826 | + |
Load factor | -1.5pt | -1.1pt | ||
Unit revenue per ASK (€cts) | 7.93 | + | 6.90 | + |
Unit cost per ASK (€cts) | 6.35 | + | 6.65 | + |
Total Passenger revenues (€m) | 1,118 | + | 2,424 | + |
Salaries and related costs (€m) | -198 | + | -543 | + |
Aircraft fuel, excl. ETS (€m) | -238 | - | -608 | + |
Other operating expenses (€m) | -383 | + | -968 | + |
EBITDA (€m) | 300 | + | 305 | + |
Depreciation & Amortization (in €m) | -75 | - | -219 | + |
Operating result (€m) | 225 | +37 | 86 | +70 |
Operating margin (%) | +1.6pt | +2.8pt | ||
|
Despite Transavia’s capacity increase in available seat kilometers of
The operating result amounted to
In the first nine months Transavia’s operating result increased by
Maintenance business: Third party revenues continue to grow
Maintenance | Third Quarter | Year to date | ||
2024 | Change | 2024 | Change | |
Total Revenues (€m) | 1,232 | + | 3,657 | + |
o/w Third party revenues (€m) | 507 | + | 1,508 | + |
External expenses (€m) | -776 | + | -2,378 | + |
Salaries and related costs (€m) | -289 | + | -879 | + |
EBITDA (€m) | 167 | + | 400 | + |
Depreciation & Amortization (€m) | -110 | + | -276 | + |
Operating result (€m) | 58 | -5 | 123 | -1 |
Operating margin (%) | -1.3pt | -0.7pt |
The maintenance segment continued its growth in the third quarter 2024. Third party revenues increased by +
The operating margin stood at
Air France’s Q3 performance improved compared to last year excluding Olympic Games impact
Air France Group
Third Quarter | Year to date | |||
2024 | change | 2024 | change | |
Revenue (in €m) | 5,543 | + | 14,377 | + |
Salaries and related costs (in €m) | -1,418 | + | -4,044 | + |
Aircraft fuel, excl. ETS (in €m) | -1,150 | - | -3,207 | - |
Other operating expenses (in €m) | -1,793 | + | -5,173 | + |
EBITDA (in €m) | 1,183 | -26 | 1,954 | -313 |
Depreciation & Amortization (in €m) | -451 | + | -1,276 | + |
Operating result* (in €m) | 732 | -74 | 678 | -429 |
Operating margin (%) | -1.8pt | -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
KLM unit revenue improvement more than offset by unit cost development
KLM Group
| Third Quarter | Year to date | ||
2024 | change | 2024 | change | |
Revenue (in €m) | 3,549 | + | 9,553 | + |
Salaries and related costs (in €m) | -973 | + | -2,936 | + |
Aircraft fuel, excl. ETS (in €m) | -728 | - | -2,156 | - |
Other operating expenses (in €m) | -1,189 | + | -3,336 | + |
EBITDA (in €m) | 660 | -127 | 1,125 | -220 |
Depreciation & Amortization (in €m) | -264 | -760 | + | |
Operating result* (in €m) | 396 | -143 | 365 | -303 |
Operating margin (%) | -4.6pt | -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 +
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
- Increasing labour productivity by at least
5% by 2025, including through automation, mechanization and reducing absenteeism. - Resolve the impact of the pilot shortage and ensure that KLM can operate all flights with its pilots, with a better balance between intercontinental and European flights.
- Due to the shortage of technicians and ongoing supply problems of parts, KLM can operate fewer flights. Measures are being taken at Engineering & Maintenance to reduce the number of cancellations.
- Improvement of existing, and introduction of new products on board. Trials are underway with an expanded catering offer and optimization of aircraft layout, aimed at increasing revenues by at least
€100 million a year. - Measures to simplify the organisation, achieve more synergy, get rid of overlap and overhead. One example is the planned reorganization of flight services and training organizations.
- Finally, KLM will explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations.
For KLM Catering Services (KCS) KLM is exploring strategic options to make KCS future proof as investment in KCS is imminent. Any strategic option needs to ensure cost efficiency, maintaining operational control, assure the quality for passengers and supporting KLM's sustainability and personalized catering goals.
Continued momentum for Flying Blue Miles
Flying Blue Miles
| Third Quarter | Year to date | ||
2024 | change | 2024 | change | |
Revenue (in €m) | 200 | n.a. | 604 | n.a. |
Operating result (in €m) | 55 | n.a. | 156 | n.a. |
Operating margin (%) | n.a. | n.a. |
In the third quarter Flying Blue miles generated
Flying Blue steadily attracts new members, benefiting from a good momentum of the commercial partnerships.
Nb: Sum of individual airline and Flying Blue results does not add up to AF-KLM total due to intercompany eliminations at Group level.
******
The results presentation is available at www.airfranceklm.com on November 7, 2024 from 8:15 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on November 7, 2024 at 09.30 am CET.
To connect to the webcast, please use below link:
https://channel.royalcast.com/landingpage/airfranceklm/20241107_1/
Investor Relations | Press Office | |
Michiel Klinkers | Marouane Mami | +33 1 41 56 56 00 |
Michiel.klinkers@airfranceklm.com | marouane.mami@airfranceklm.com | mail.mediarelations@airfranceklm.com |
Income statement
Third Quarter | Year to date | |||||
in € million | 2024 | 2023 | Variation | 2024 | 2023 | Variation |
restated * | ||||||
Revenues from ordinary activities | 8,979 | 8,660 | 4 % | 23,582 | 22,612 | 4 % |
Aircraft fuel | -1,878 | -1,918 | -2 % | -5,363 | -5,360 | 0 % |
Carbon emission | -66 | -57 | 16 % | -191 | -139 | 37 % |
Chartering costs | -133 | -167 | -20 % | -380 | -410 | -7 % |
Landing fees and air routes charges | -569 | -539 | 6 % | -1,545 | -1,458 | 6 % |
Catering | -253 | -225 | 12 % | -686 | -618 | 11 % |
Handling charges and other operating costs | -560 | -499 | 12 % | -1,534 | -1,393 | 10 % |
Aircraft maintenance costs | -781 | -585 | 34 % | -2,379 | -1,831 | 30 % |
Commercial and distribution costs | -256 | -268 | -4 % | -810 | -785 | 3 % |
Other external expenses | -495 | -464 | 7 % | -1,488 | -1,377 | 8 % |
Salaries and related costs | -2,401 | -2,146 | 12 % | -6,997 | -6,311 | 11 % |
Taxes other than income taxes | -41 | -40 | 2 % | -137 | -133 | 3 % |
Capitalized production | 301 | 224 | 34 % | 1,029 | 758 | 36 % |
Other income and expenses | 49 | 17 | 188 % | 140 | 52 | 169 % |
EBITDA | 1,896 | 1,993 | -5 % | 3,241 | 3,607 | -10 % |
Amortization, depreciation and provisions | -716 | -651 | 10 % | -2,037 | -1,838 | 11 % |
Income from current operations | 1,180 | 1,342 | -12 % | 1,204 | 1,769 | -32 % |
Sales of aircraft equipment | 10 | 5 | 100 % | 25 | 33 | -24 % |
Other non current income and expenses | – | -3 | -100 % | -118 | 11 | nm |
Income from operating activities | 1,190 | 1,344 | -11 % | 1,111 | 1,813 | -39 % |
Interests expenses | -157 | -148 | 6 % | -471 | -443 | 6 % |
Income from cash & cash equivalent | 67 | 67 | 0 % | 236 | 176 | 34 % |
Net cost of financial debt | -90 | -81 | 11 % | -235 | -267 | -12 % |
Other financial income and expenses | 14 | -168 | nm | -198 | -156 | 27 % |
Income before tax | 1,114 | 1,095 | 2 % | 678 | 1,390 | -51 % |
Income taxes | -300 | -155 | 94 % | -181 | -176 | 3 % |
Net income of consolidated companies | 814 | 940 | -13 % | 497 | 1,214 | -59 % |
Share of profits (losses) of associates | 10 | 6 | 67 % | 13 | 7 | 86 % |
Net Income for the period | 824 | 946 | -13 % | 510 | 1,221 | -58 % |
Net income - Non controlling interests | 44 | 15 | 193 % | 130 | 31 | nm |
Net income - Group part | 780 | 931 | -16 % | 380 | 1,190 | -68 % |
Consolidated balance sheet
Assets | September 30, 2024 | December 31, 2023 |
(in € million) | ||
Goodwill | 224 | 224 |
Intangible assets | 1,132 | 1,128 |
Flight equipment | 12,607 | 11,501 |
Other property, plant and equipment | 1,500 | 1,431 |
Right-of-use assets | 6,652 | 5,956 |
Investments in equity associates | 240 | 129 |
Pension assets | 85 | 45 |
Other non-current financial assets | 1,290 | 1,262 |
Non-current derivatives financial assets | 115 | 148 |
Deferred tax assets | 643 | 698 |
Other non-current assets | 151 | 153 |
Total non-current assets | 24,639 | 22,675 |
Other current financial assets | 1,155 | 1,292 |
Current derivatives financial assets | 46 | 122 |
Inventories | 948 | 853 |
Trade receivables | 2,219 | 2,152 |
Other current assets | 1,261 | 1,120 |
Cash and cash equivalents | 4,553 | 6,194 |
Assets held for sale | 77 | 82 |
Total current assets | 10,259 | 11,815 |
Total assets | 34,898 | 34,490 |
Liabilities and equity | September 30, 2024 | December 31, 2023 |
(in € million) | ||
Issued capital | 263 | 263 |
Additional paid-in capital | 7,560 | 7,560 |
Treasury shares | -24 | -25 |
Perpetual | 1,065 | 1,076 |
Reserves and retained earnings | -10,585 | -10,925 |
Equity attributable to equity holders of Air France-KLM | -1,721 | -2,051 |
Perpetual | 2,584 | 2,524 |
Reserves and retained earnings | 31 | 27 |
Equity attributable Non-controlling interests | 2,615 | 2,551 |
Total equity | 894 | 500 |
Pension provisions | 1,678 | 1,685 |
Non-current return obligation liability and other provisions | 4,007 | 3,805 |
Non-current financial liabilities | 7,024 | 7,538 |
Non-current lease debt | 4,034 | 3,581 |
Non-current derivatives financial liabilities | 86 | 56 |
Deferred tax liabilities | 7 | — |
Other non-current liabilities | 1,028 | 1,376 |
Total non-current liabilities | 17,864 | 18,041 |
Current return obligation liability and other provisions | 1,050 | 1,079 |
Current financial liabilities | 1,577 | 1,664 |
Current lease debt | 875 | 848 |
Current derivatives financial liabilities | 312 | 139 |
Trade payables | 2,547 | 2,447 |
Deferred revenue on ticket sales | 4,345 | 3,858 |
Frequent flyer programs | 886 | 899 |
Other current liabilities | 4,547 | 5,002 |
Bank overdrafts | 1 | 13 |
Total current liabilities | 16,140 | 15,949 |
Total equity and liabilities | 34,898 | 34,490 |
Statement of Consolidated Cash Flows from January 1 until September 30
Period from January 1 to September 30 | 2024 | 2023 |
(in € million) | restated* | |
Net income | 510 | 1,221 |
Amortization, depreciation and operating provisions | 2,037 | 1,839 |
Financial provisions | 212 | 157 |
Cost of net debt | 235 | 267 |
Loss (gain) on disposals of tangible and intangible assets | -31 | -54 |
Loss (gain) on disposals of subsidiaries and associates | -2 | – |
Derivatives – non monetary result | 19 | -6 |
Unrealized foreign exchange gains and losses, net | -97 | 24 |
Share of (profits) losses of associates | -13 | -7 |
Deferred taxes | 99 | 78 |
Impairment | – | 2 |
Other non-monetary items | 21 | -42 |
Cash flow from operating activities before change in working capital | 2,990 | 3,479 |
(Increase) / decrease in inventories | -106 | -81 |
(Increase) / decrease in trade receivables | -44 | -491 |
Increase / (decrease) in trade payables | 102 | 324 |
Increase / (decrease) in advanced ticket sales | 476 | 608 |
Change in other assets and liabilities | -850 | 27 |
Change in working capital requirement | -422 | 387 |
CASH-FLOW FROM OPERATING ACTIVITIES | 2,568 | 3,866 |
Acquisition of subsidiaries, of shares in non-controlled entities | -92 | -2 |
Proceeds on disposal of subsidiaries, of shares in non-controlled entities | 8 | – |
Purchase of property plant and equipment and intangible assets | -2,931 | -2,280 |
Proceeds on disposal of property plant and equipment and intangible assets | 391 | 276 |
Interest received | 221 | 151 |
Dividends received | 2 | 3 |
Decrease (increase) in net investments, more than 3 months | 137 | 112 |
Acquisition of warrants | – | -12 |
CASH-FLOW USED IN INVESTING ACTIVITIES | -2,264 | -1,752 |
Increase of equity paid by non controlling interests | – | 2 |
Payments to acquire treasury shares | – | -1 |
Purchase of minority interest without change of control | -1 | – |
Issuance of perpetual | – | 1,226 |
Repayment on perpetual | – | -595 |
Coupon on perpetual | -131 | -87 |
Issuance of debt | 1,147 | 1,798 |
Repayment on debt | -1,715 | -3,116 |
Payments on lease debts | -666 | -625 |
New loans | -103 | -298 |
Repayment on loans | 65 | 127 |
Interest paid | -532 | -582 |
Dividends paid | -1 | -90 |
CASH-FLOW FROM FINANCING ACTIVITIES | -1,937 | -2,241 |
Effect of exchange rate and reclassification on cash and cash equivalents (net of cash acquired or sold) | 4 | -16 |
Change in cash and cash equivalents and bank overdrafts | -1,629 | -143 |
Cash and cash equivalents and bank overdrafts at beginning of period | 6,181 | 6,623 |
Cash and cash equivalents and bank overdrafts at end of period | 4,552 | 6,480 |
*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities
Net debt
(in € million) | September 30, 2024 | December 31, 2023 |
Current and non-current financial liabilities | 8,601 | 9,202 |
Current and non-current lease debt | 4,909 | 4,429 |
Accrued interest | -100 | -138 |
Deposits related to financial liabilities | -100 | -107 |
Deposits related to lease debt | -93 | -100 |
Derivatives impact on debt | 5 | -1 |
Gross financial liabilities (I) | 13,222 | 13,285 |
Cash and cash equivalent | 4,553 | 6,194 |
Marketable securities > 3 months | 962 | 1,097 |
Bonds | 1,010 | 966 |
Bank overdrafts | -1 | -13 |
Net cash (II) | 6,524 | 8,244 |
Net debt (I-II) | 6,698 | 5,041 |
Recurring adjusted operating free cash flow
Third Quarter | Year to date | |||
2024 | 2023 | 2024 | 2023 | |
(in € million) | restated * | restated * | ||
Net cash flow from operating activities | 918 | 636 | 2,568 | 3,866 |
Purchase of property plant and equipment and intangible assets | -864 | -884 | -2,931 | -2,280 |
Proceeds on disposal of property plant and equipment and intangible assets | 18 | 65 | 391 | 276 |
Operating free cash flow | 72 | -183 | 28 | 1,862 |
Exceptional payments made/(received) (1) | 122 | 104 | 972 | 223 |
Interest paid and received | -81 | -47 | -311 | -431 |
Payments on lease debts | -224 | -204 | -666 | -625 |
Recurring adjusted operating free cash flow | -111 | -330 | 23 | 1,029 |
*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities
(1) Exceptional payments made/(received), restated from operating free cash flow for the calculation of recurring operating free cash flow adjusted, correspond to the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period.
Return on capital employed (ROCE)
In € million | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 |
restated4 | restated (1) | restated (1) | ||||||
Goodwill and intangible assets | 1,356 | 1,354 | 1,349 | 1,352 | 1,331 | 1,339 | 1,351 | 1,352 |
Flight equipment | 12,607 | 12,197 | 11,646 | 11,501 | 11,296 | 10,957 | 10,954 | 10,614 |
Other property, plant and equipment | 1,500 | 1,456 | 1,438 | 1,431 | 1,379 | 1,389 | 1,372 | 1,375 |
Right of use assets | 6,652 | 6,479 | 5,902 | 5,956 | 5,596 | 5,480 | 5,304 | 5,428 |
Investments in equity associates | 240 | 134 | 134 | 129 | 127 | 121 | 122 | 120 |
Financial assets excluding marketable securities, accrued interests and financial deposits | 218 | 211 | 214 | 219 | 191 | 190 | 169 | 169 |
Provisions, excluding pension, cargo litigation and restructuring | -4,553 | -4,700 | -4,523 | -4,346 | -4,481 | -4,248 | -4,255 | -4,347 |
WCR2 | -7,422 | -8,222 | -8,284 | -6,981 | -7,804 | -8,917 | -8,696 | -7,213 |
Capital employed | 10,598 | 8,909 | 7,876 | 9,261 | 7,635 | 6,311 | 6,321 | 7,498 |
Average capital employed (A) | 9,161 | 6,941 | ||||||
Adjusted results from current operations | 1,148 | 1,902 | ||||||
- Dividends received | -1 | -2 | ||||||
- Share of profits (losses) of associates | 13 | 18 | ||||||
- Normative income tax | -300 | -495 | ||||||
Adjusted result from current operations after tax (B) | 860 | 1,423 | ||||||
ROCE, trailing 12 months (B/A) |
Unit cost: net cost per ASK
Third Quarter | Year to date | |||
2024 | 2023 | 2024 | 2023 | |
Total operating expenses (in €m) | 7,798 | 7,317 | 22,377 | 20,844 |
Carbon emission (ETS) | -66 | -57 | -191 | -139 |
Total other revenues (in €m) | -795 | -704 | -2,320 | -1,961 |
Net cost (in €m) | 6,937 | 6,556 | 19,866 | 18,744 |
Capacity produced, reported in ASK | 87,811 | 84,754 | 241,903 | 232,481 |
Net cost per ASK (in € cents per ASK) | 7.90 | 7.74 | 8.21 | 8.06 |
Gross change | 2.2 % | 2.1 % | ||
Currency effect on net costs (in €m) | 21 | -4 | ||
Change at constant currency | 1.9 % | 2.1 % | ||
Fuel price effect (in €m) | -102 | -208 | ||
Net cost per ASK at constant currency, constant fuel price and excluding ETS (in € cents per ASK) | 7.98 | 7.71 | 8.21 | 7.97 |
Change at constant currency and constant fuel price excluding ETS | 3.4 % | 3.0 % |
Unit cost per ASK excluding fuel and ETS vs Q3 2023: +
Definition: Unit cost = (total operating expenses - fuel - carbon emission - total other revenues) / Group Capacity in ASK
Group fleet at 30 September 2024
Aircraft type | AF (incl. HOP)5 | KL (incl. KLC & MP) | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 31/12/23 |
B777-300 | 43 | 16 | 21 | 14 | 24 | 59 | 59 | ||
B777-200 | 18 | 15 | 28 | 2 | 3 | 33 | 33 | ||
B787-9 | 10 | 13 | 4 | 7 | 12 | 23 | 23 | ||
B787-10 | 10 | 1 | 9 | 10 | 10 | ||||
A380-800 | 3 | 2 | 1 | 3 | |||||
A350-900 | 35 | 4 | 12 | 19 | 35 | 35 | 9 | ||
A330-300 | 5 | 5 | 5 | 5 | |||||
A330-200 | 15 | 6 | 12 | 9 | 21 | 21 | |||
Total Long-Haul | 124 | 65 | 0 | 72 | 44 | 73 | 189 | 186 | 9 |
B737-900 | 5 | 5 | 5 | 5 | |||||
B737-800 | 31 | 110 | 36 | 8 | 97 | 141 | 141 | ||
B737-700 | 6 | 4 | 7 | 3 | 10 | 10 | |||
A321NEO | 2 | 6 | 3 | 5 | 8 | 8 | 7 | ||
A321 | 15 | 8 | 7 | 15 | 15 | ||||
A320 | 36 | 4 | 3 | 29 | 36 | 36 | -1 | ||
A320NEO | 6 | 6 | 6 | 6 | 6 | ||||
A319 | 10 | 6 | 4 | 10 | 10 | -3 | |||
A318 | 6 | 4 | 2 | 6 | 6 | ||||
A220-300 | 37 | 24 | 2 | 11 | 37 | 37 | 5 | ||
Total Medium-Haul | 104 | 44 | 126 | 97 | 13 | 164 | 274 | 274 | 14 |
Canadair Jet 1000 | 1 | 1 | 1 | ||||||
Embraer 195 E2 | 18 | 18 | 18 | 15 | -3 | ||||
Embraer 190 | 23 | 28 | 17 | 4 | 30 | 51 | 50 | ||
Embraer 175 | 17 | 3 | 14 | 17 | 17 | ||||
Embraer 170 | 13 | 10 | 3 | 13 | 13 | ||||
Total Regional | 37 | 63 | 0 | 31 | 18 | 51 | 100 | 95 | -3 |
B747-400ERF | 3 | 3 | 3 | 3 | |||||
B747-400BCF | 1 | 1 | 1 | 1 | |||||
B777-F | 2 | 2 | 2 | 2 | |||||
Total Cargo | 2 | 4 | 0 | 4 | 0 | 2 | 6 | 6 | 0 |
Total | 267 | 176 | 126 | 204 | 75 | 290 | 569 | 561 | 20 |
2024 TRAFFIC
Passenger network activity
Third Quarter | Year to date | |||||
Total network airlines | 2024 | 2023 | variation | 2024 | 2023 | variation |
Passengers carried (‘000s) | 20,499 | 19,836 | + | 56,261 | 54,366 | + |
Revenue pax-kilometers (m RPK) | 65,526 | 63,511 | + | 180,744 | 174,778 | + |
Available seat-kilometers (m ASK) | 73,465 | 71,028 | + | 206,270 | 199,689 | + |
Load factor (%) | -0.2pt | +0.1pt | ||||
Long-haul | ||||||
Passengers carried (‘000s) | 7,192 | 6,936 | + | 19,910 | 19,245 | + |
Revenue pax-kilometers (m RPK) | 53,328 | 51,516 | + | 148,658 | 143,395 | + |
Available seat-kilometers (m ASK) | 59,185 | 56,883 | + | 168,131 | 162,204 | + |
Load factor (%) | -0.5pt | 0.0pt | ||||
North America | ||||||
Passengers carried (‘000s) | 2,898 | 2,731 | + | 7,367 | 6,975 | + |
Revenue pax-kilometers (m RPK) | 20,394 | 19,270 | + | 52,156 | 49,577 | + |
Available seat-kilometers (m ASK) | 22,647 | 21,278 | + | 59,461 | 56,371 | + |
Load factor (%) | -0.5pt | -0.2pt | ||||
Latin America | ||||||
Passengers carried (‘000s) | 859 | 878 | - | 2,543 | 2,630 | - |
Revenue pax-kilometers (m RPK) | 8,131 | 8,355 | - | 24,168 | 24,978 | - |
Available seat-kilometers (m ASK) | 8,867 | 8,984 | - | 26,710 | 27,476 | - |
Load factor (%) | -1.3pt | -0.4pt | ||||
Asia / Middle East | ||||||
Passengers carried (‘000s) | 1,510 | 1,392 | + | 4,530 | 3,877 | + |
Revenue pax-kilometers (m RPK) | 12,119 | 11,017 | + | 35,927 | 30,246 | + |
Available seat-kilometers (m ASK) | 13,400 | 12,244 | + | 40,546 | 34,407 | + |
Load factor (%) | +0.5pt | +0.7pt | ||||
Africa | ||||||
Passengers carried (‘000s) | 1,060 | 1,089 | - | 2,961 | 3,124 | - |
Revenue pax-kilometers (m RPK) | 6,469 | 6,697 | - | 18,264 | 19,177 | - |
Available seat-kilometers (m ASK) | 7,211 | 7,538 | - | 21,126 | 22,277 | - |
Load factor (%) | +0.9pt | +0.4pt | ||||
Caribbean / Indian Ocean | ||||||
Passengers carried (‘000s) | 866 | 846 | + | 2,509 | 2,639 | - |
Revenue pax-kilometers (m RPK) | 6,214 | 6,177 | + | 18,143 | 19,417 | - |
Available seat-kilometers (m ASK) | 7,060 | 6,839 | + | 20,288 | 21,673 | - |
Load factor (%) | -2.3pt | -0.2pt | ||||
Short and Medium-haul | ||||||
Passengers carried (‘000s) | 13,306 | 12,900 | + | 36,351 | 35,121 | + |
Revenue pax-kilometers (m RPK) | 12,198 | 11,995 | + | 32,086 | 31,383 | + |
Available seat-kilometers (m ASK) | 14,280 | 14,145 | + | 38,139 | 37,485 | + |
Load factor (%) | +0.6pt | +0.4pt |
Transavia activity
Third quarter | Year to date | |||||
Transavia | 2024 | 2023 | variation | 2024 | 2023 | variation |
Passengers carried (‘000s) | 7,356 | 7,068 | + | 18,208 | 16,853 | + |
Revenue seat-kilometers (m RSK) | 12,841 | 12,502 | + | 31,826 | 29,637 | + |
Available seat-kilometers (m ASK) | 14,330 | 13,716 | + | 35,591 | 32,753 | + |
Load factor (%) | -1.5pt | -1.1pt |
Total Group passenger activity
Third quarter | Year to date | |||||
Total Group | 2024 | 2023 | variation | 2024 | 2023 | variation |
Passengers carried (‘000s) | 27,855 | 26,904 | + | 74,470 | 71,218 | + |
Revenue pax-kilometers (m RPK) | 78,367 | 76,013 | + | 212,570 | 204,415 | + |
Available seat-kilometers (m ASK) | 87,795 | 84,744 | + | 241,861 | 232,442 | + |
Load factor (%) | -0.4pt | -0.1pt |
Cargo activity
Third quarter | Year to date | |||||
Cargo | 2024 | 2023 | variation | 2024 | 2023 | variation |
Revenue tonne-km (m RTK) | 1,687 | 1,636 | + | 4,936 | 4,779 | + |
Available tonne-km (m ATK) | 3,707 | 3,654 | + | 10,724 | 10,501 | + |
Load factor (%) | +0.7pt | +0.5pt |
Air France activity
Third quarter | Year to date | |||||
Total Passenger network activity | 2024 | 2023 | variation | 2024 | 2023 | variation |
Passengers carried (‘000s) | 11,670 | 11,455 | + | 31,502 | 31,744 | - |
Revenue pax-kilometers (m RPK) | 40,441 | 38,677 | + | 108,966 | 105,074 | + |
Available seat-kilometers (m ASK) | 45,788 | 43,366 | + | 125,000 | 120,074 | + |
Load factor (%) | -0.9pt | -0.3pt | ||||
Long-haul | ||||||
Passengers carried (‘000s) | 4,671 | 4,382 | + | 12,625 | 11,967 | + |
Revenue pax-kilometers (m RPK) | 33,789 | 31,854 | + | 91,950 | 87,001 | + |
Available seat-kilometers (m ASK) | 37,859 | 35,352 | + | 104,630 | 98,517 | + |
Load factor (%) | -0.9pt | -0.4pt | ||||
Short and Medium-haul | ||||||
Passengers carried (‘000s) | 6,999 | 7,073 | - | 18,877 | 19,778 | - |
Revenue pax-kilometers (m RPK) | 6,652 | 6,823 | - | 17,016 | 18,073 | - |
Available seat-kilometers (m ASK) | 7,929 | 8,014 | - | 20,371 | 21,556 | - |
Load factor (%) | -1.2pt | -0.3pt | ||||
Cargo activity | ||||||
Revenue tonne-km (m RTK) | 839 | 818 | + | 2,445 | 2,397 | + |
Available tonne-km (m ATK) | 2,190 | 2,101 | + | 6,210 | 5,940 | + |
Load factor (%) | -0.7pt | -1.0pt |
KLM activity
Third quarter | Year to date | |||||
Total Passenger network activity | 2024 | 2023 | variation | 2024 | 2023 | variation |
Passengers carried (‘000s) | 8,829 | 8,380 | + | 24,759 | 22,621 | + |
Revenue pax-kilometers (m RPK) | 25,084 | 24,836 | + | 71,777 | 69,705 | + |
Available seat-kilometers (m ASK) | 27,677 | 27,660 | + | 81,271 | 79,614 | + |
Load factor (%) | +0.8pt | +0.8pt | ||||
Long-haul | ||||||
Passengers carried (‘000s) | 2,522 | 2,554 | - | 7,285 | 7,278 | + |
Revenue pax-kilometers (m RPK) | 19,538 | 19,664 | - | 56,708 | 56,395 | + |
Available seat-kilometers (m ASK) | 21,326 | 21,529 | - | 63,502 | 63,686 | - |
Load factor (%) | +0.3pt | +0.7pt | ||||
Short and Medium-haul | ||||||
Passengers carried (‘000s) | 6,307 | 5,827 | + | 17,474 | 15,343 | + |
Revenue pax-kilometers (m RPK) | 5,546 | 5,172 | + | 15,070 | 13,310 | + |
Available seat-kilometers (m ASK) | 6,352 | 6,131 | + | 17,769 | 15,928 | + |
Load factor (%) | +3.0pt | +1.2pt | ||||
Cargo activity | ||||||
Revenue tonne-km (m RTK) | 848 | 818 | + | 2,491 | 2,382 | + |
Available tonne-km (m ATK) | 1,517 | 1,553 | - | 4,514 | 4,561 | - |
Load factor (%) | +3.3pt | +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?
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