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Air France-KLM First Quarter 2021 results

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6 May 2021

First Quarter 2021
Operating Result at -1.2 billion euros, EBITDA at -0.6 billion euros
Travel restrictions still impacting the Group’s activity

Over the first three months of the year, the Group continued to be negatively impacted by travel restrictions as the whole industry:

  • Revenue at 2.2 billion euros, down 57% compared to last year

  • EBITDA loss at -0.6 billion euros, mitigated due to strict cost control and national partial activity schemes

  • Operating result at -1.2 billion euros, down 0.4 billion euros compared to last year

  • Net income at -1.5 billion euros, after taking interest charges into account

  • Net debt at 12.5 billion euros, up 1.5 billion compared to end of 2020

  • At 31 March 2021, the Group has 8.5 billion euros of liquidity and credit lines at disposal

  • Early April 2021, first set of balance sheet strengthening measures successfully executed resulting in an increase of €4bn equity and improved cash position by €1bn

OUTLOOK

Due to the stricter lockdown in France until, at least beginning of May, continuation of the lockdown in the Netherlands and travel restrictions worldwide still in place, the Group anticipates the beginning of the second quarter to be similar to the first quarter whereby the customer booking behaviour is still short-term oriented.

The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination. In the US, domestic demand is recovering rapidly due to the speed of the vaccination process.

In this context, the Group expects capacity in Available Seat kilometers circa index 50% for Air France-KLM in the Second quarter 2021 compared to 2019 for the Network passenger activity.
During the second half of the second quarter the Group will progressively ramp up capacity given the vaccination deployment in Europe.

For the Third quarter the Group foresees a capacity in Available Seat kilometers index in the range of 55% to 65% compared to 2019 for the Network passenger activity thanks to estimated higher demand.

The Air France-KLM Group continues to work to strengthen its balance sheet. Additional measures of equity and quasi-equity instruments are currently under consideration. Extraordinary resolutions will be presented at the next Annual General Meeting, aiming to give the Board of Directors great flexibility to restore equity.

Air France-KLM Group

First Quarter

2021

Change1

Passengers (thousands)

4,819

-73.4%

Passenger Unit revenue per ASK2 (€ cts)

2.90

-48.8%

Operating result (€m)

-1,179

-364

Net income – Group part (€m)

-1,481

+320

Adj. operating free cash flow (€m)

-1,344

-519

Net debt at end of period (€m)³

12,553

1,504

The Board of Directors of Air France-KLM, chaired by Ms. Anne-Marie Couderc, met on May 5, 2021 to approve the financial statements for the First quarter 2021. Group CEO Mr. Benjamin Smith said:

“A year into the COVID crisis, lockdown measures and travel restrictions in our home markets and around the world continue to strongly impact the Group’s activity. In this ever-challenging environment, the Group has nevertheless shown its resilience, maintaining a strict control of its capacity and costs” said Benjamin Smith, CEO of Air France – KLM. “The success of the first set of capital-strengthening measures completed in April, allows us to look forward to the summer season with greater confidence, hoping that the progress of the vaccination roll-out worldwide and the implementation of travel passes will allow borders to reopen and traffic to recover. In the meantime, we have accelerated the implementation of our transformation plan to build a solid post-crisis model. This includes the execution of our voluntary departure plans, which are progressing as expected. In the coming months, we will continue our strict cost control approach while reinforcing our sustainability commitments, in line with our ambitious environmental roadmap."

Business review

Network: Passenger traffic still suffering from travel restrictions, partly compensated by strong Cargo performance

Network

First Quarter

2021

Change

Change
constant currency

Total revenues (€m)

1,858

-56.6%

-55.5%

Scheduled revenues (€m)

1,712

-57.9%

-56.8%

Operating result (€m)

-1,060

-331

-349

First quarter 2021 revenues decreased by 55.5% at constant currency to 1.9 billion euros. The operating result amounted to -1.1 billion euros, a 350 million euros decrease at constant currency compared to last year. Ongoing focus on cash flow by continuing the deferral of payments, cost savings measures, negotiations with suppliers on payment terms, staff reductions and partial activity schemes.

Passenger network: Recovery in Q1 hampered by tough travel restrictions worldwide, with North America, Latin America and Asia as the most impacted areas

First Quarter

Passenger network

2021

Change

Change
constant currency

Passengers (thousands)

4,467

-71.7%

Capacity (ASK m)

33,586

-46.2%

Traffic (RPK m)

13,433

-73.1%

Load factor

40.0%

-39.9 pt

Total passenger revenues (€m)

1,019

-73.3%

-72.7%

Scheduled passenger revenues (€m)

965

-73.7%

-73.1%

Unit revenue per ASK (€ cts)

2.87

-51.2%

-49.9%

Last year March the Group was already heavily impacted by the Covid-19 crisis. The passenger network activity in the First quarter was reduced at 54% of last year’s level while the number of passengers decreased by 72%. Compared with the First quarter of 2019 the Available Seat Kilometers were at index 48%. Thanks to the Group’s balanced network and strong Cargo business the passenger network activity level was above the estimated capacity level guided during the Fourth quarter 2020 results presentation and the Group operated more capacity than their competitors.

During the First quarter, the Group added two Embraer 195 E2 to the fleet and welcomed as well one Airbus 350-900 and two Boeing 777-300. With these investments the Group continue to build an efficient fleet and shows its sustainable commitment.

Cargo: Strong performance, with continuation of capacity shortage

First Quarter

Cargo business

2021

Change

Change
constant currency

Tons (thousands)

268

+10.4%

Capacity (ATK m)

2,688

-15.8%

Traffic (RTK m)

2,074

+13.2%

Load factor

77.2%

+19.7 pt

Total Cargo revenues (€m)

839

+80.0%

+87.5%

Scheduled cargo revenues (€m)

748

+87.5%

+95.2%

Unit revenue per ATK (€ cts )

27.84

+122.7%

+131.7%

Limited air cargo capacity together with high demand resulted in the First quarter again in a high loadfactor and high yield in the cargo industry. Despite a reduction in capacity of -15.8%, primarily driven by the reduction in belly capacity of passenger aircraft, the Group was able to increase the transported Tons and showed unit revenue per ATK up 131.7% against constant currency versus last year.

Since the start of the Covid-19 vaccin transportation, Air France-KLM Cargo has transported millions Covid-19 vaccines to more than 30 destinations worldwide. During the coming months the Group estimates a steady increase in the number of vaccine shipments.

Transavia: Operating result –120 million euros as impacted by Covid-19 crisis

First Quarter

Transavia

2021

Change

Passengers (thousands)

352

-85.0%

Capacity (ASK m)

1,012

-79.3%

Traffic (RPK m)

583

-86.9%

Load factor

57.6%

-33.5 pt

Total passenger revenues (€m)

37

-84.8%

Unit revenue per ASK (€ cts)

3.68

-21.6%

Unit cost per ASK (€ cts)

15.56

+144.3%

Operating result (€m)

-120

-38

The First quarter operating result ended -38 million euros lower compared to last year at an operational loss of -120 million euros, as a result of the ongoing Covid-19 crisis with strict border restrictions in Europe and North Africa.

First quarter activity level was only around 20% of last year’s production, with a unit revenue down -21.6% compared to 2020. Load factor at 57.6% was impacted by travel restrictions imposed. The production level of Transavia France was slightly higher at and index of 26 compared to 2020, thanks to the start of domestic routes.

Transavia plan to grow is still valid, well positioned to capture the leisure traffic recovery foreseen in the coming months towards the end of the summer, being a major opportunity for the Group’s competitiveness gain. The adding of eight Boeing 737-800 aircraft to Transavia France fleet in the first quarter is part of this plan.
Maintenance: Operating result stabilizing

First Quarter

Maintenance

2021

Change

Change
constant currency

Total revenues (€m)

622

-45.3%

Third-party revenues (€m)

259

-47.5%

-40.3%

Operating result (€m)

-8

-5

9

Operating margin (%)

-1.3%

-0.9 pt

+0.4 pt

The First quarter operating result stood at -8 million euros, a decrease of 5 million euros, against a constant currency an increase of 9 million euros.

During the First quarter 2021, third-party revenues declined by 47.5%. This decrease is explained not only by the COVID crisis starting mid-March 2020, but also by the work made by the Maintenance business to reduce the airlines costs for example through use of greentime to avoid engine shop visits as much as possible. Despite this drop in external revenues the operating margin stabilized versus the First quarter 2020.
Salary cost decreased thanks to partial activity schemes and a sharp drop in other cost was visibile during the First quarter versus Last year due to a reduced number of shop visits of Air France-KLM Group airlines.

Air France-KLM Group: EBITDA decreased by €0.6bn while revenues down €2.9bn in Q1

First Quarter

2021

Change

Change
constant currency

Capacity (ASK m)

34,598

-48.6%

Traffic (RPK m)

14,015

-74.2%

Passenger unit revenue per ASK (€ cts)

3.45

-40.5%

-39.0%

Group unit revenue per ASK (€ cts)

5.06

-20.8%

-18.8%

Group unit cost per ASK (€ cts) at constant fuel

8.47

+11.4%

+20.7%

Revenues (€m)

2,161

-56.9%

-55.5%

EBITDA (€m)

-627

-566

-566

Operating result (€m)

-1,179

-364

-366

Operating margin (%)

-54.6%

-38.3 pt

-37.8 pt

Net income - Group part (€m)

-1,481

+320

In the First quarter 2021, the Air France-KLM Group posted an operating result of -627 million euros, down by 566 million euros compared to last year.

Net income amounted to -1.5 billion euros in the First quarter 2021, an increase of 320 million euros compared to last year. The net income result is mainly driven by the operational result and the cost of financial debt.
The net income of the first quarter 2020 included Covid-19 related over hedging -455 million euros, release of deferred tax assets -173 million euros and impairment of Boeing 747 aircraft -21 million euros.

The First quarter 2021 unit cost increased by 20.7%, primarily caused by Covid-19 related capacity reductions

Group net employee costs were down 39% in the first quarter of 2021 compared to last year, supported by staff reductions and partial activity schemes. The average number of FTEs (Full Time Equivalent) stood at 76,500 in March 2021, down 400 FTE compared to December 2020.

Working capital slightly negative, net debt increased by €1.5bn

First quarter

In € million

2021

Change

Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)

-745

-574

Cash out related to Voluntary Departure Plans (€m)

-45

-36

Change in Working Capital Requirement (WCR) (€m)

-92

-554

Net cash flow from operating activities (€m)

-882

-1,164

Net investments* (€m)

-246

+612

Operating free cash flow (€m)

-1,128

-552

Repayment of lease debt

-216

+33

Adjusted operating free cash flow**

-1,344

-519

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

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

The Group generated adjusted operating free cash flow in First quarter 2021 of -1.3 billion euros, a decrease of 519 million euros compared to last year. Mainly explained by a net cash flow from operating activities decline of 1.2 billion euros, partly offset by a reduction in net investments of 612 million euros.

Deferred state tax liabilities and employee related liabilities in combination with continuing focus on working capital management the Group was able to mitigate the negative change in working capital to -92 million euros in the first quarter.

Since the beginning of the crisis, Air France, KLM and Transavia proceeded 2.8 billion euros of refunds to customers, of which 550 million euros during the First quarter 2021.

In € million

31 Mar 2021

31 Dec 2020

Net debt

12,553

11,049

EBITDA trailing 12 months

-2,255

-1,689

Net debt/EBITDA trailing 12 months

na

na

Air France and KLM continued to be negatively impacted by travel restrictions

First Quarter

2021

Change

Air France Group Operating result (€m)

-840

-304

Operating margin (%)

-62.6%

-44.9 pt

KLM Group Operating result (€m)

-337

-61

Operating margin (%)

-36.2%

-23.3 pt

OUTLOOK

Due to the stricter lockdown in France until, at least beginning of May, continuation of the lockdown in the Netherlands and travel restrictions worldwide still in place, the Group anticipates a difficult start of the Second quarter whereby the customer booking behaviour is still short-term oriented.

The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination. The vaccination pace in Europe is slower than in the US where the domestic demand recovers quickly thanks to the high speed vaccination process.

In this context the Group expects capacity in Available Seat kilometers circa index 50% for Air France-KLM in the Second quarter 2021 compared to 2019 for the Network passenger activity.
During the second half of the second quarter the Group will progressively ramp up capacity given the vaccination deployment in Europe.

For the Third quarter the Group foresees a capacity in Available Seat kilometers between index 55% and 65% compared to 2019 for the Network passenger activity thanks to estimated higher demand.

At 31 March 2021, the Group has a 8.5 billion euros of liquidity and credit lines at disposal. This level can be considered comfortable, given the expected recovery in the summer, despite the cash requirements for 2021 which include:

  • Q2 2021 EBITDA expected to be in the same range as EBITDA Q1 2021

  • Capex spending inferior at 2.0 billion euros in 2021, but largely funded for fleet investments

  • Restructuring cash out at 0.5 billion euros in 2021, part of which is financed by the associated reduction in the wage bill

A first set of capital strengthening measures was successfully executed in April and resulted in an increase in equity of 4 billion euros and cash of 1 billion euros.

The Air France-KLM group continues to work on strengthening its balance sheet. Additional equity and quasi-equity measures are currently under consideration. Extraordinary resolutions will be presented at the next Annual General Meeting, aiming to give the Board of Directors great flexibility to restore equity and initiate the gradual refinancing of state aid and restore leverage ratio.

******

The first quarter 2021 accounts are not audited by the Statutory Auditors.

The results presentation is available at www.airfranceklm.com on 6 May 2021 from 7:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO) will be held on 6 May 2021 at 08.30 CET.

To connect to the conference call, please dial:

France: Local +33 (0)1 76 77 25 07
Netherlands: Local +31 (0)20 703 8259
UK: Local +44 (0)330 336 9434
US: Local +1 720-543-0206

Confirmation code: 6657799

Investor Relations Press
Olivier Gall Michiel Klinkers
+33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 00
olgall@airfranceklm.com Michiel.klinkers@airfranceklm.com

Income Statement

First quarter

€m

2021

2020

Change

Sales

2,161

5,020

-56.9%

Other revenues

0

0

nm

Revenues

2,161

5,020

-56.9%

Aircraft fuel

-463

-1,185

-60.9%

Chartering costs

-69

-89

-22.5%

Landing fees and en route charges

-215

-387

-44.4%

Catering

-58

-164

-64.6%

Handling charges and other operating costs

-191

-359

-46.8%

Aircraft maintenance costs

-345

-614

-43.8%

Commercial and distribution costs

-59

-194

-69.6%

Other external expenses

-298

-404

-26.2%

Salaries and related costs

-1,166

-1,916

-39.1%

Taxes other than income taxes

-41

-56

-26.8%

Other income and expenses

117

287

-59.2%

EBITDA

-627

-61

+927.9%

Amortization, depreciation and provisions

-552

-754

-26.8%

Income from current operations

-1,179

-815

+44.7%

Sales of aircraft equipment

-3

-1

+200.0%

Other non-current income and expenses

-4

-45

-91.1%

Income from operating activities

-1,186

-861

+37.8%

Cost of financial debt

-189

-102

+85.3%

Income from cash and cash equivalent

1

7

-85.7%

Net cost of financial debt

-188

-95

+98.3%

Other financial income and expenses

-90

-666

-86.5%

Income before tax

-1,464

-1,622

-9.7%

Income taxes

-11

-173

-93.6%

Net income of consolidated companies

-1,475

-1,795

-17.8%

Share of profits (losses) of associates

-7

-8

-12.5%

Net income for the period

-1,482

-1,803

-17.8%

Minority interest

-1

-2

-50%

Net income for the period – Group part

-1,481

-1,801

-17.8%

Consolidated Balance Sheet

Assets

31 Mar 2021

31 Dec 2020

In million euros

Goodwill

221

215

Intangible assets

1,259

1,230

Flight equipment

10,800

11,031

Other property, plant and equipment

1,476

1,548

Right-of-use assets

4,795

4,678

Investments in equity associates

223

230

Derivatives assets long term

101

92

Pension assets

551

211

Other financial assets

808

795

Deferred tax assets

257

282

Other non-current assets

3

4

Total non-current assets

20,494

20,316

Other short-term financial assets

615

607

Derivatives assets short term

262

160

Inventories

529

543

Trade receivables

1,340

1,248

Other current assets

1,017

914

Cash and cash equivalents

5,059

6,423

Total current assets

8,822

9,895

Total assets

29,316

30,211

Liabilities and equity

31 Mar 2021

31 Dec 2020

In million euros

Issued capital

429

429

Additional paid-in capital

4,139

4,139

Treasury shares

-25

-25

Perpetual

0

0

Reserves and retained earnings

-11,045

-9,970

Equity attributable to equity holders of Air France-KLM

-6,502

-5,427

Non-controlling interests

9

9

Total Equity

-6,493

-5,418

Pension provisions

2,105

2,147

Other provisions

3,780

3,670

Long-term debt

14,238

14,171

Lease financial debt

2,599

2,425

Derivatives liabilities long term

56

122

Deferred tax liabilities

136

22

Other non-current liabilities

1,760

1,294

Total non-current liabilities

24,674

23,851

Provisions

1,342

1,337

Current portion of long-term debt

1,325

1,318

Current portion of lease financial debt

831

839

Derivatives liabilities short term

92

363

Trade payables

1,372

1,435

Deferred revenue on ticket sales

2,233

2,394

Frequent flyer programs

917

916

Other current liabilities

3,019

3,175

Bank overdrafts

4

1

Total current liabilities

11,135

11,778

Total equity and liabilities

29,316

30,211

Statement of Consolidated Cash Flows from 1st Jan until 31 March 2021

€m

31 Mar 2021

31 Mar 2020

Net income from continuing operations

-1,482

-1,803

Amortization, depreciation and operating provisions

553

754

Financial provisions

27

51

Loss (gain) on disposals of tangible and intangible assets

3

1

Loss (gain)on disposals of subsidiaries and associates

0

0

Derivatives – non monetary result

-41

432

Unrealized foreign exchange gains and losses, net

125

142

Impairment

8

21

Other non-monetary items

3

48

Share of (profits) losses of associates

7

8

Deferred taxes

7

166

Financial Capacity

-790

-180

(Increase) / decrease in inventories

8

22

(Increase) / decrease in trade receivables

-72

596

Increase / (decrease) in trade payables

-85

-309

Increase / (decrease) in advanced ticket sales

-153

179

Change in other receivables and payables

210

-26

Change in working capital requirements

-92

462

Net cash flow from operating activities

-882

282

Purchase of property, plant and equipment and intangible assets

-466

-869

Proceeds on disposal of property, plant and equipment and intangible assets

220

11

Proceeds on disposal of subsidiaries, of shares in non-controlled entities

0

356

Acquisition of subsidiaries, of shares in non-controlled entities

-4

-1

Dividends received

0

0

Decrease (increase) in net investments, more than 3 months

1

0

Net cash flow used in investing activities

-249

-503

Increase of equity due to new convertible bond

0

0

Perpetual (including premium)

0

0

Issuance of debt

302

2,710

Repayment on financial debt

-331

-588

Payments on lease debt

-216

-249

Decrease (increase ) in loans, net

2

-3

Dividends and coupons on perpetual paid

0

0

Net cash flow from financing activities

-243

1,870

Effect of exchange rate on cash and cash equivalents and bank overdrafts

7

-3

Change in cash and cash equivalents and bank overdrafts

-1,367

1,646

Cash and cash equivalents and bank overdrafts at beginning of period

6,422

3,711

Cash and cash equivalents and bank overdrafts at end of period

5,055

5,357

Change in treasury of discontinued operations

0

0

Return on capital employed (ROCE)31

In million euros

31 Mar 2021

31 Dec 2020

30 Sep 2020

30 June 2020

31 Mar 2020

31 Dec 2019

30 Sep 2019

30 June 2019

Goodwill and intangible assets

1,479

1,445

1,470

1,500

1,564

1,522

1,481

1,465

Flight equipment

10,800

11,031

11,009

10,919

11,465

11,334

10,829

10,747

Other property, plant and equipment

1,476

1,548

1,535

1,551

1,579

1,580

1,554

1,530

Right of use assets

4,795

4,678

4,789

4,938

5,119

5,173

5,300

5,470

Investments in equity associates

223

230

224

267

299

307

310

305

Financial assets excluding marketable securities and financial deposits

146

146

135

133

142

140

131

125

Provisions, excluding pension, cargo litigation and restructuring

-4,083

-3,922

-4,001

-4,130

-4,190

-4,058

-4,101

-3,888

WCR, excluding market value of derivatives

-6,410

-6,505

-6,894

-6,779

-6,650

-6,310

-6,285

-6,957

Capital employed

8,426

8,651

8,267

8,399

9,328

9,688

9,219

8,797

Average capital employed (A)

8,436

9,258

Adjusted results from current operations

-4,913

612

- Dividends received

0

-2

- Share of profits (losses) of associates

-56

12

- Normative income tax

1,472

-155

Adjusted result from current operations after tax (B)

-3,497

467

ROCE, trailing 12 months (B/A)

-41.5%

5.0%

Net debt

Balance sheet at

€m

31 Mar 2021

31 Dec 2020

Financial debt

15,461

15,388

Repo on triple A bonds

-83

-84

Lease debt

3,347

3,184

Currency hedge on financial debt

15

27

Accrued interest

-174

-107

Gross financial debt (A)

18,566

18,408

Cash and cash equivalents

5,059

6,423

Marketable securities

215

193

Cash securities

286

309

Bonds AAA

540

518

Bank overdrafts

-4

-1

Others

0

1

Repo on triple A bonds

-83

-84

Net cash (B)

6,013

7,359

Net debt (A) – (B)

12,553

11,049

Adjusted operating free cash flow

First quarter

€m

2021

2020

Net cash flow from operating activities, continued operations

-882

282

Investment in property, plant, equipment and intangible assets

-466

-869

Proceeds on disposal of property, plant, equipment and intangible assets

220

11

Operating free cash flow

-1,128

-576

Payments on lease debt

-216

-249

Adjusted operating free cash flow

-1,344

-825

Operating cash burn





First quarter

2021

2020

EBITDA

- 627

-61

Provisions (CO2 and other)

42

6

Correction of spare parts inventory

1

1

Addition to pension provisions

75

77

Reversal to pension provisions (cash-out)

-43

-48

Payment linked with shares

0

-2

Sales of tangible and intangible assets (excluding aeronauticals)

-39

-2

Dividend received

0

0

Income from operation activities - cash impact

-591

-29

Restructuring costs

-45

-9

Other non-current income and expenses

0

-1

Cost of financial debt

-168

-95

Financial income

-4

2

Realized foreign exchange gain/loss

27

-7

Termination of trading hedges - cash

-6

-11

Current income tax

-3

-7

Other financial charges & expenses - cash

0

-23

Other elements

0

0

Financial capacity

-790

-180

Unit cost: net cost per ASK

First quarter

2021

2020

Revenues (in €m)

2,161

5,020

Income/(loss) from current operations (in €m) -/-

1,179

815

Total operating expense (in €m)

3,341

5,835

Passenger network business – other revenues (in €m)

-55

-140

Cargo network business – other revenues (in €m)

-91

-67

Third-party revenues in the maintenance business (in €m)

-260

-493

Transavia - other revenues (in €m)

0

-13

Third-party revenues of other businesses (in €m)

-7

-7

Net cost (in €m)

2,929

5,114

Capacity produced, reported in ASK*

34,598

67,295

Net cost per ASK (in € cents per ASK)

8.47

7.60

Gross change

11.4%

Currency effect on net costs (in €m)

-110

Change at constant currency

13.8%

Fuel price effect (in €m) adjusted for 2019 capacity

-286

Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)

8.47

7.01

Change at constant currency and fuel price basis

+20.7%

* The capacity produced by the transportation activities is combined by adding the capacity of the Passenger network (in ASK) to that of Transavia (in ASK).

Group results
Air France Group

First quarter

2021

Change

Revenue (in €m)

1,341

-55.5%

EBITDA (in €m)

-512

-445

Operating result (en m€)

-840

-304

Operating margin (%)

-62.6%

-44.9 pt

Operating cash flow before WCR and restructuring cash out (in €m)

-622

-497

Operating cash flow (before WCR and restructuring) margin

-46.4%

-42.2 pt


KLM Group



First quarter

2021

Change

Revenue (in €m)

930

-56.6%

EBITDA (in €m)

-111

-122

Operating result (en m€)

-337

-61

Operating margin (%)

-36.2%

-23.3 pt

Operating cash flow before WCR and restructuring cash out (in €m)

-113

-98

Operating cash flow (before WCR and restructuring) margin

-12.2%

-11.5 pt

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

Group fleet at 31 March 2021

Aircraft type

AF
(incl. HOP)

KL
(incl. KLC & MP)

Transavia

Owned

Finance lease

Operating lease

Total

In operation

Change / 31/12/20

B747-400

1

1

1

B777-300

43

16

20

17

22

59

59

2

B777-200

23

15

26

12

38

36

-4

B787-9

10

13

5

6

12

23

23

B787-10

6

3

3

6

5

A380-800

9

2

3

4

9

A350-900

7

1

5

1

7

7

1

A340-300

A330-300

5

5

5

5

A330-200

15

8

11

12

23

21

Total Long-Haul

107

64

0

69

34

68

171

156

-1

B737-900

5

5

5

5

B737-800

31

83

29

10

75

114

114

8

B737-700

15

5

3

4

13

20

17

-3

A321

20

11

9

20

20

A320

44

4

4

36

44

44

A319

32

13

19

32

31

-2

A318

18

8

10

18

18

Total Medium-Haul

114

51

88

73

18

162

253

249

3

ATR72-600

ATR72-500

ATR42-500

Canadair Jet 1000

14

14

14

14

Canadair Jet 700

8

8

8

8

-1

Embraer 195 E2

2

2

2

2

2

Embraer 190

17

32

11

10

28

49

49

Embraer 175

17

3

14

17

17

Embraer 170

15

10

5

15

15

Embraer 145

13

13

13

Total Regional

67

51

0

59

24

35

118

105

1

B747-400ERF

3

3

3

3

B747-400BCF

1

1

1

1

B777-F

2

2

2

2

Total Cargo

2

4

0

6

0

0

6

6

0

Total

290

170

88

207

76

265

548

516

3

FIRST QUARTER 2021 TRAFFIC

Passenger network activity*

Q1

Total Passenger network*

2021

2020

Variation

Passengers carried (‘000s)

4,467

15,766

(71.7%)

Revenue pax-kilometers (m RPK)

13,433

49,854

(73.1%)

Available seat-kilometers (m ASK)

33,588

62,425

(46.2%)

Load factor (%)

40.0%

79.9%

(39.9)

Long-haul

Passengers carried (‘000s)

1,569

5,517

(71.6%)

Revenue pax-kilometers (m RPK)

10,965

41,492

(73.6%)

Available seat-kilometers (m ASK)

29,329

51,229

(42.8%)

Load factor (%)

37.4%

81.0%

(43.6)

North America

Passengers carried (‘000s)

274

1,483

(81.5%)

Revenue pax-kilometers (m RPK)

2,031

10,580

(80.8%)

Available seat-kilometers (m ASK)

7,065

13,317

(46.9%)

Load factor (%)

28.7%

79.4%

(50.7)

Latin America

Passengers carried (‘000s)

195

831

(76.6%)

Revenue pax-kilometers (m RPK)

1,864

7,824

(76.2%)

Available seat-kilometers (m ASK)

5,293

9,304

(43.1%)

Load factor (%)

35.2%

84.1%

(48.9)

Asia / Pacific

Passengers carried (‘000s)

160

1,113

(85.6%)

Revenue pax-kilometers (m RPK)

1,332

9,622

(86.2%)

Available seat-kilometers (m ASK)

6,078

12,110

(49.8%)

Load factor (%)

21.9%

79.5%

(57.5)

Africa / Middle East

Passengers carried (‘000s)

531

1,188

(55.3%)

Revenue pax-kilometers (m RPK)

2,782

6,881

(59.6%)

Available seat-kilometers (m ASK)

5,967

8,663

(31.1%)

Load factor (%)

46.6%

79.4%

(32.8)

Caribbean / Indian Ocean

Passengers carried (‘000s)

408

902

(54.7%)

Revenue pax-kilometers (m RPK)

2,957

6,586

(55.1%)

Available seat-kilometers (m ASK)

4,926

7,836

(37.1%)

Load factor (%)

60.0%

84.0%

(24.0)

Short and Medium-haul

Passengers carried (‘000s)

2,899

10,248

(71.7%)

Revenue pax-kilometers (m RPK)

2,467

8,362

(70.5%)

Available seat-kilometers (m ASK)

4,260

11,195

(62.0%)

Load factor (%)

57.9%

74.7%

(16.8)

* Air France and KLM

Transavia activity

Q1

Transavia

2021

2020

Variation

Passengers carried (‘000s)

352

2,349

(85.0%)

Revenue pax-kilometers (m RPK)

583

4,456

(86.9%)

Available seat-kilometers (m ASK)

1,011

4,892

(79.3%)

Load factor (%)

57.6%

91.1%

(33.5)

Total group passenger activity**

Q1

Total group**

2021

2020

Variation

Passengers carried (‘000s)

4,819

18,115

(73.4%)

Revenue pax-kilometers (m RPK)

14,015

54,310

(74.2%)

Available seat-kilometers (m ASK)

34,600

67,317

(48.6%)

Load factor (%)

40.5%

80.7%

(40.2)

** Air France, KLM and Transavia

Cargo activity

Q1

Total Group

2021

2020

Variation

Revenue tonne-km (m RTK)

2,073

1,835

13.0%

Available tonne-km (m ATK)

2,688

3,198

(16.0%)

Load factor (%)

77.1%

57.4%

19.8


Air France activity

Q1

Total Passenger network activity

2021

2020

Variation

Passengers carried (‘000s)

3,046

9,490

(67.9%)

Revenue pax-kilometers (m RPK)

8,569

29,200

(70.7%)

Available seat-kilometers (m ASK)

16,417

36,704

(55.3%)

Load factor (%)

52.2%

79.6%

(27.4)


Long-haul

Passengers carried (‘000s)

1,048

3,285

(68.1%)

Revenue pax-kilometers (m RPK)

6,994

24,177

(71.1%)

Available seat-kilometers (m ASK)

13,918

29,913

(53.5%)

Load factor (%)

50.3%

80.8%

(30.6)


Short and Medium-haul

Passengers carried (‘000s)

1,997

6,205

(67.8%)

Revenue pax-kilometers (m RPK)

1,575

5,024

(68.7%)

Available seat-kilometers (m ASK)

2,500

6,792

(63.2%)

Load factor (%)

63.0%

74.0%

(11.0)


Q1

Cargo activity

2021

2020

Variation

Revenue tonne-km (m RTK)

905

817

10.7%

Available tonne-km (m ATK)

1,333

1,627

(18.1%)

Load factor (%)

67.9%

50.2%

17.7

KLM activity

Q1

Total Passenger network activity

2021

2020

Variation

Passengers carried (‘000s)

1,422

6,276

(77.3%)

Revenue pax-kilometers (m RPK)

4,863

20,654

(76.5%)

Available seat-kilometers (m ASK)

17,171

25,720

(33.2%)

Load factor (%)

28.3%

80.3%

(52.0)


Long-haul

Passengers carried (‘000s)

520

2,232

(76.7%)

Revenue pax-kilometers (m RPK)

3,971

17,315

(77.1%)

Available seat-kilometers (m ASK)

15,411

21,316

(27.7%)

Load factor (%)

25.8%

81.2%

(55.5)


Short and Medium-haul

Passengers carried (‘000s)

901

4,043

(77.7%)

Revenue pax-kilometers (m RPK)

893

3,339

(73.3%)

Available seat-kilometers (m ASK)

1,760

4,404

(60.0%)

Load factor (%)

50.7%

75.8%

(25.1)


Q1

Cargo activity

2021

2020

Variation

Revenue tonne-km (m RTK)

1,168

1,017

14.8%

Available tonne-km (m ATK)

1,355

1,571

(13.8%)

Load factor (%)

86.2%

64.8%

21.4


1 The first quarter of 2020 was impacted by Covid-19, particularly in March
2 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency
³ Change versus 31 December 2020

1 The definition of ROCE has been revised to take into account the seasonal effects of the activity.

Attachment