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Second QUARTER 2022

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·34 min read
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AIR FRANCE - KLM
AIR FRANCE - KLM

July 29, 2022

Second QUARTER 2022
Strong results driven by a spike in demand

Second quarter:

  • Positive operating result at 386 million euros

  • Net income at 324 million euros, showing a 1.8 billion euros improvement compared to the same quarter last year

  • Positive adjusted operating free cash flow at 1.5 billion euros thanks to positive EBITDA and strong ticket sales. It improved by 1.3 billion euros compared to the same quarter in 2021

  • The Group has already successfully achieved 2.8 billion euros of equity measures of the up to 4 billion announced last February

  • Air France-KLM/Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon). KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million euros

  • Net debt at 6.0 billion euros, down by 2.2 billion euros compared to end of 2021 thanks to a positive adjusted operating free cash flow and the rights issue completed in June 2022

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

Outlook:

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

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

  • 80% to 85% in the Third quarter of 2022

  • 85% to 90% in the Fourth quarter of 2022

  • Circa 80% for the Full Year 2022

All indices compared to the respective period of 2019.

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

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

Expected operating result

  • Significantly positive in the third quarter

  • Positive in 2022, for the first time since 2019

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

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

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

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

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

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

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

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

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

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

 

Second quarter

Half year

 

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Passengers (thousands)

22,803

+224.5%

 

37,326

+215.0%

 

Capacity (ASK m)

72,127

+81.9%

 

130,192

+75.3%

 

Traffic (RPK m)

61,365

+243.4%

 

104,499

+227.7%

 

Passenger unit revenue per ASK (€ cts)

7.41

+93.6%

+89.1%

6.51

+91.8%

+87.9%

Group unit revenue per ASK (€ cts)

8.52

+46.1%

+42.1%

7.73

+41.4%

+38.0%

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

7.98

+3.2%

-12.7%

7.71

-4.6%

-15.6%

Revenues (€m)

6,707

+143.9%

+138.7%

11,152

+127.1%

+123.8%

EBITDA (€m)

931

1,180

1,186

1,152

2,029

2,050

Operating result (€m)

386

1,139

1,145

36

1,970

1,989

Operating margin (%)

5.8%

+33.1 pt

+32.8 pt

0.3%

+39.7 pt

+39.5 pt

Net income - Group part (€m)

324

+1,813

 

-228

+2,744

 

Adj. operating free cash flow (€m)

1,532

+1,322

 

2,163

+3,297

 

Net debt at end of period (€m)1

 

 

 

6,036

-2,180

 

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

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

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

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

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

Business review

Network: Significant improvement in operating result

Network

Second quarter

Half year

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Total revenues (€m)

5,753

+143.5%

+137.4%

9,647

+128.6%

+123.6%

Scheduled revenues (€m)

5,532

+153.0%

+145.7%

9,207

+136.1%

+130.2%

Operating result (€m)

352

+1,006

+1,013

43

+1,758

+1,773

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

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

 

Second quarter

Half year

Passenger network

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Passengers (thousands)

17,556

+199.9%

 

29,497

+185.8%

 

Capacity (ASK m)

61,697

+69.4%

 

114,268

+63.2%

 

Traffic (RPK m)

52,479

+229.4%

 

91,346

+211.1%

 

Load factor

85.1%

+41.3 pt

 

79.9%

+38.0 pt

 

Total passenger revenues (€m)

4,835

+229.3%

+223.4%

7,818

+214.3%

+209.6%

Scheduled passenger revenues (€m)

4,732

+239.9%

+231.3%

7,610

+223.0%

+216.0%

Unit revenue per ASK (€ cts)

7.67

+100.7%

+95.6%

6.66

+97.9%

+93.6%

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

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

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

  • North Atlantic: Strong improvement since mid-January driven by the strong traffic recovery, with strong yield due to fare increases and a positive cabin mix. The second quarter showed new bookings outpacing 2019 levels.

  • Capacity discipline on South America routes combined with a very resilient demand led to a strong yield. Corporate traffic ramped up quickly in the same time.

  • Asia: The strong yield performance is due to limited capacity and the group continues to observe important differences between the regions. South East Asia and India showed positive dynamic in yield and traffic.

  • Caribbean & Indian Ocean: The yields improved thanks to successive fare increases and a positive cabin mix effect.

  • Africa: A strong corporate recovery was observed in all areas. For KLM, the performance was driven by East and South Africa with strong yield increase linked to positive cabin mix and a positive economy yield evolution. For Air France, performance was driven by West and Central African countries with a good steering strategy.

  • Middle-East: The second quarter performance stayed strong thanks to Dubai, especially on premium cabins and an increased traffic on some routes.

  • Medium-haul: Strong booking dynamic since March. KLM is impacted by operational challenges and restrictions on flight departures from Amsterdam which led to traffic restriction. The yield is above 2019, especially on leisure routes with network capacity constraints and a positive competition environment.

  • Short-haul: The network was able to absorb capacity recovery month over month thanks to business motive dynamism. Yield is above 2019 helped by steering yield initiatives.

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

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

 

Second quarter

Half year

Cargo business

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Tons (thousands)

236

-13.4%

 

472

-12.7%

 

Capacity (ATK m)

3,341

+27.4%

 

6,315

+18.9%

 

Traffic (RTK m)

1,732

-17.2%

 

3,497

-16.1%

 

Load factor

51.8%

-27.9 pt

 

55.4%

-23.1 pt

 

Total Cargo revenues (€m)

918

+2.6%

-1.1%

1,828

+5.5%

+2.2%

Scheduled cargo revenues (€m)

801

+0.7%

-2.8%

1,597

+3.5%

+0.4%

Unit revenue per ATK (€ cts )

23.96

-20.9%

-23.7%

25.29

-13.0%

-15.5%

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

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

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

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

 

Second quarter

Half year

Transavia

2022

Change

2022

Change

Passengers (thousands)

5,247

+346.8%

7,828

+412.8%

Capacity (ASK m)

10,430

+221.9%

15,924

+274.6%

Traffic (RPK m)

8,886

+358.2%

13,154

+421.6%

Load factor

85.2%

+25.3 pt

82.6%

+23.3 pt

Total passenger revenues (€m)

601

+378.0%

850

+422.2%

Unit revenue per ASK (€ cts)

5.86

+51.0%

5.41

+41.2%

Unit cost per ASK (€ cts)

6.04

-12.5%

6.11

-31.9%

Operating result (€m)

-18

+80

-110

+108

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

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

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

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

Maintenance business: Operating margin above 2019 level

 

Second quarter

Half year

Maintenance

2022

Change

Change
constant currency

2022

Change

Change
constant currency

Total revenues (€m)

911

+34.1%

 

1,742

+33.9%

 

Third-party revenues (€m)

345

+35.1%

+35.3%

642

+25.0%

+30.0%

Operating result (€m)

57

60

61

101

111

117

Operating margin (%)

6.3%

+6.7 pt

+6.8 pt

5.8%

+6.6 pt

+7.1 pt

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

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

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

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

 

Second quarter

Half year

In € million

2022

Change

2022

Change

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

785

+1,237

841

+2,083

Cash out related to Voluntary Departure Plans (€m)

-68

+12

-125

+0

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

1,510

+299

2,835

+1,715

Net cash flow from operating activities (€m)

2,239

1,525

3,620

3,787

Net investments* (€m)

-482

-195

-1,015

-481

Operating free cash flow (€m)

1,757

+1,330

2,605

3,306

Repayment of lease debt

-225

-8

-442

-9

Adjusted operating free cash flow**

1,532

+1,322

2,163

+3,297

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

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

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

In € million

30 Jun 2022

31 Dec 2021

Net debt

6,036

8,216

EBITDA trailing 12 months

2,773

745

Net debt/EBITDA trailing 12 months

2.2 x

11.0 x

Both airlines able to reach positive operating margin

 

Second quarter

Half year

 

2022

Change

2022

Change

Air France Group Operating result (€m)

133

+700

-230

+1,179

Operating margin (%)

3.3%

+37.8 pt

-3.4%

+43.8 pt

KLM Group Operating result (€m)

262

+447

266

+787

Operating margin (%)

9.4%

+24.8 pt

5.7%

+30.1 pt

  • Significant improvement in Operating result for both airlines with operating margins close to 2019 levels

******

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

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

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

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

Confirmation code: 1131773

Investor Relations

 

Press

Frederic Kahane

Michiel Klinkers

 

 

 

+33 1 41 56 56 00

frkahane@airfranceklm.com

Michiel.klinkers@airfranceklm.com

 

Income Statement

 

Second quarter

Half year

€m

2022

2021*

Change

2022

2021*

Change

Revenues from ordinary activities

6,707

2,750

+143.9%

11,152

4,910

+127.1%

Aircraft fuel

-1,863

-520

+258.3%

-2,858

-982

+191.0%

Chartering costs

-93

-78

+19.2%

-193

-147

+31.3%

Landing fees and air route charges

-436

-245

+78.0%

-784

-460

+70.4%

Catering

-176

-68

+158.8%

-319

-126

+153.2%

Handling charges and other operating costs

-401

-211

+90.0%

-722

-402

+79.6%

Aircraft maintenance costs

-603

-447

+34.9%

-1,118

-792

+41.2%

Commercial and distribution costs

-230

-72

+219.4%

-384

-131

+193.1%

Other external expenses

-368

-254

+44.9%

-702

-552

+27.2%

Salaries and related costs

-1,820

-1,238

+47.0%

-3,343

-2,406

+38.9%

Taxes other than income taxes

-34

-29

+17.2%

-80

-69

+15.9%

Other income and expenses

248

163

+52.1%

503

280

+79.6%

EBITDA

931

-249

nm

1,152

-877

nm

Amortization, depreciation and provisions

-545

-504

+8.1%

-1,116

-1,057

+5.6%

Income from current operations

386

-753

nm

36

-1,934

nm

Sales of aircraft equipment

39

-11

nm

39

-14

nm

Other non-current income and expenses

-10

-849

-98.8%

-15

-853

-98%

Income from operating activities

415

-1,613

nm

60

-2,801

nm

Cost of financial debt

-136

-149

-8.7%

-277

-339

-18.3%

Income from cash and cash equivalent

1

2

-50.0%

0

3

-100.0%

Net cost of financial debt

-135

-147

-8.2%

-277

-336

-17.6%

Other financial income and expenses

-238

5

nm

-286

-85

+236.5%

Income before tax

42

-1,755

nm

-503

-3,222

-84.4%

Income taxes

283

272

+4.0%

278

263

+5.7%

Net income of consolidated companies

325

-1,483

nm

-225

-2,959

-92.4%

Share of profits (losses) of associates

0

-9

-100.0%

-1

-16

-93.8%

Net income for the period

325

-1,492

nm

-226

-2,975

-92.4%

Non-controlling interests

1

-3

nm

2

-3

nm

Net income for the period – Group part

324

-1,489

nm

-228

-2,972

-92.3%

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

Consolidated Balance Sheet

Assets

30 Jun 2022

31 Dec 2021

€m

Goodwill

223

222

Intangible assets

1,213

1,235

Flight equipment

10,521

10,466

Other property, plant and equipment

1,358

1,402

Right-of-use assets

5,439

5,148

Investments in equity associates

108

109

Other non-current financial assets

1,064

951

Non-current derivatives financial assets

304

143

Deferred tax assets

494

278

Total non-current assets

20,724

19,954

Assets held for sale

78

74

Other current financial assets

589

484

Current derivatives financial assets

954

469

Inventories

654

567

Trade receivables

2,045

1,511

Other current assets

1,133

966

Cash and cash equivalents

8,173

6,658

Total current assets

13,626

10,729

Total assets

34,350

30,683


Liabilities and equity

30 Jun 2022

31 Dec 2021

In million euros

Issued capital

2,571

643

Additional paid-in capital

5,217

4,949

Treasury shares

-25

-25

Perpetual bonds

1,389

3,151

Reserves and retained earnings

-12,349

-12,542

Equity attributable to equity holders of Air France-KLM

-3,197

-3,824

Non-controlling interests

10

8

Total Equity

-3,187

-3,816

Pension provisions

1,558

1,939

Non-current return obligation liability and other provisions

4,272

4,055

Non-current financial liabilities

10,568

11,274

Non-current lease debt

3,335

2,924

Non-current derivatives financial liabilities

1

25

Deferred tax liabilities

3

1

Other non-current liabilities

2,465

2,555

Total non-current liabilities

22,202

22,773

Current return obligation liability and other provisions

838

885

Current financial liabilities

1,079

1,215

Current lease debt

851

825

Current derivatives financial liabilities

42

46

Trade payables

2,821

1,850

Deferred revenue on ticket sales

4,938

2,644

Frequent flyer programs

868

888

Other current liabilities

3,896

3,369

Bank overdrafts

2

4

Total current liabilities

15,335

11,726

Total equity and liabilities

34,350

30,683

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

€m

30 Jun 2022

30 Jun 2021*

Net income

-226

-2,975

Amortization, depreciation and operating provisions

1,116

1,057

Financial provisions

69

58

Loss (gain) on disposals of tangible and intangible assets

-40

14

Loss (gain) on disposals of subsidiaries and associates

-

-26

Derivatives – non monetary result

-20

-29

Unrealized foreign exchange gains and losses, net

240

86

Impairment

17

15

Other non-monetary items

-90

762

Share of (profits) losses of associates

1

16

Deferred taxes

-282

-265

Financial Capacity

785

-1,287

(Increase) / decrease in inventories

-79

12

(Increase) / decrease in trade receivables

-437

-268

Increase / (decrease) in trade payables

971

138

Increase / (decrease) in advanced ticket sales

2,276

489

Change in other receivables and payables

104

749

Change in working capital requirement

2,835

1,120

Net cash flow from operating activities

3,620

-167

Acquisition of subsidiaries, of shares in non-controlled entities

-

2

Purchase of property, plant and equipment and intangible assets

-1,491

-1,099

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

-

71

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

476

565

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

6

85

Dividends received

1

-

Net cash flow used in investing activities

-1,008

-376

Increase of equity

1,551

1,024

Perpetual

-993

-

Coupons on perpetual

-229

-

Issuance of debt

552

690

Repayment on debt

-1,187

-750

Payments on debt on lease with bargain option

-228

-385

Payments on lease debt

-442

-433

New loans

-175

-37

Repayment on loans

16

44

Net cash flow from financing activities

-1,135

153

Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold)

40

1

Change in cash and cash equivalents and bank overdrafts

1,517

-389

Cash and cash equivalents and bank overdrafts at beginning of period

6,654

6,422

Cash and cash equivalents and bank overdrafts at end of period

8,171

6,033

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

In million euros

30
Jun 2022

31 Mar 2022

31 Dec 2021

30* Sep 2021

30* Jun 2021

31* Mar 2021

31* Dec 2020

30* Sep 2020

Goodwill and intangible assets

1,437

1,473

1,457

1,456

1,464

1,479

1,445

1,470

Flight equipment

10,521

10,537

10,466

10,478

10,645

10,800

11,031

11,009

Other property, plant and equipment

1,358

1,378

1,402

1,418

1,453

1,476

1,548

1,535

Right of use assets

5,393

5,205

5,148

5,061

5,033

4,795

4,678

4,789

Investments in equity associates

108

107

109

172

166

223

230

224

Financial assets excluding marketable securities and financial deposits

162

158

157

147

147

146

146

135

Provisions, excluding pension, cargo litigation and restructuring

-4,471

-4,239

-4,173

-4,180

-4,033

-4,083

-3,922

-4,002

WCR, excluding market value of derivatives

-11,156

-9,589

-8,262

-7,995

-7,745

-6,410

-6,505

-6,894

Capital employed

3,352

5,030

6,304

6,557

7,130

8,426

8,651

8,266

Average capital employed (A)

5,311

8,118

Adjusted results from current operations

344

-4,119

- Dividends received

0

0

- Share of profits (losses) of associates

-12

-45

- Normative income tax

-80

1,211

Adjusted result from current operations after tax (B)

252

-2,953

ROCE, trailing 12 months (B/A)

4.7%

-36.4%

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

Net debt

 

Balance sheet at

€m

31 Jun 2022

31 Dec 2021

Current and non-current financial liabilities

11,647

12,489

Current and non-current lease debt

4,186

3,749

Accrued interest

-122

-128

Deposits related to financial liabilities

-96

-99

Deposits related to lease debt

-96

-85

Derivatives impact on debt

-60

-14

Gross financial debt (A)

15,459

15,912

Cash and cash equivalents

8,173

6,658

Marketable securities

85

189

Cash secured

424

324

Triple A bonds

743

529

Bank overdrafts

-2

-4

Net cash (B)

9,423

7,696

Net debt (A) – (B)

6,036

8,216

Adjusted operating free cash flow

 

Second quarter

Half year

€m

2022

2021

2022

2021

Net cash flow from operating activities

2,239

714

3,620

-167

Investment in property, plant, equipment and intangible assets

-787

-632

-1,491

-1,099

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

305

345

476

565

Operating free cash flow

1,757

427

2,605

-701

Payments on lease debt

-225

-217

-442

-433

Adjusted operating free cash flow

1,532

210

2,163

-1,134

Bridge from EBITDA to Financial capacity



 

Second quarter

First Half

 

2022

2021*

2022

2021*

EBITDA

931

-249

1,152

-877

Provisions (CO2 and other)

-27

-70

-16

-28

Correction of spare parts inventory

1

2

3

3

Addition to pension provisions

33

60

65

137

Reversal to pension provisions (cash-out)

-19

-40

-32

-83

Sales of tangible and intangible assets (excluding aeronauticals)

31

70

31

31

Income from operation activities - cash impact

950

-227

1,203

-817

Restructuring costs

-68

-80

-125

-125

Other non-current income and expenses

-

-63

-2

-63

Cost of financial debt

-139

-134

-283

-302

Financial income

-3

-3

-8

-7

Realized foreign exchanges gain/loss

-11

20

3

47

Termination of trading hedges - cash

-

-1

-

-8

Settlements of forwards derivates - cash

-

-2

-

-2

Current income tax

-

1

-4

-2

Other financial charges & expenses - cash

-

-8

-

-8

Other elements

-

-

1

-

Financial capacity

729

-497

785

-1,287

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

Unit cost: net cost per ASK

 

Second quarter

Half year

 

2022

2021*

2022

2021*

Revenues (in €m)

6,707

2,750

11,152

4,910

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

-386

753

-36

1,934

Total operating expense (in €m)

6,321

3,503

11,116

6,844

Passenger network business – other revenues (in €m)

-103

-77

-208

-131

Cargo network business – other revenues (in €m)

-117

-99

-231

-190

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

-345

-255

-642

-514

Transavia - other revenues (in €m)

10

-

12

-

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

-8

-6

-13

-13

Net cost (in €m)

5,758

3,066

10,034

5,997

Capacity produced, reported in ASK*

72,127

39,657

130,192

74,254

Net cost per ASK (in € cents per ASK)

7.98

7.73

7.71

8.08

Gross change

 

3.2%

 

-4.6%

Currency effect on net costs (in €m)

 

-70

 

-118

Change at constant currency

 

0.9%

 

-6.4%

Fuel price effect (in €m)

 

492

 

668

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

7.98

9.15

7.71

9.14

Change at constant currency and fuel price basis

 

-12.7%

 

-15.6%

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

Group results
Air France Group

 

Second quarter

Half year

 

2022

Change

2022

Change

Revenue (in €m)

4,062

+146.7%

6,743

+125.8%

EBITDA (in €m)

444

+726

422

+1,217

Operating result (in €m)

133

+700

-230

+1,179

Operating margin (%)

3.3%

+37.8 pt

-3.4%

+43.8 pt

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

343

+741

255

+1,274

Operating cash flow (before WCR and restructuring) margin

8.4%

+32.6 pt

3.8%

+37.9 pt

KLM Group

 

Second quarter

Half year

 

2022

Change

2022

Change

Revenue (in €m)

2,782

+130.5%

4,685

+119.2%

EBITDA (in €m)

495

+462

729

+807

Operating result (in €m)

262

+447

266

+787

Operating margin (%)

9.4%

+24.8 pt

5.7%

+30.1 pt

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

469

+525

667

+836

Operating cash flow (before WCR and restructuring) margin

16.9%

+21.5 pt

14.2%

+22.2 pt

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

Group fleet at 30 June 2022

Aircraft type

AF
(incl. HOP)

KL
(incl. KLC & MP)

Transavia

Owned

Finance lease

Operating lease

Total

In operation

Change / 31/12/21

B777-300

43

16

 

19

16

24

59

59

 

B777-200

19

15

 

27

 

7

34

33

-3

B787-9

10

13

 

4

7

12

23

23

 

B787-10

 

6

 

2

4

 

6

5

 

A380-800

8

 

 

4

1

3

8

 

 

A350-900

18

 

 

3

7

8

18

18

6

A330-300

 

5

 

 

 

5

5

5

1

A330-200

15

6

 

11

 

10

21

21

 

Total Long-Haul

113

61

0

70

35

69

174

164

4

B737-900

 

5

 

5

 

 

5

5

 

B737-800

 

31

95

33

8

85

126

126

10

B737-700

 

10

4

7

 

7

14

14

 

A321

19

 

 

11

 

8

19

19

 

A320

41

 

 

4

4

33

41

40

-2

A319

25

 

 

12

 

13

25

24

-4

A318

12

 

 

6

 

6

12

11

-1

A220-300

10

 

 

7

 

3

10

9

3

Total Medium-Haul

107

46

99

85

12

155

252

248

6

Canadair Jet 1000

9

 

 

9

 

 

9

6

-5

Canadair Jet 700

 

 

 

 

 

 

 

 

 

Embraer 195 E2

 

12

 

 

 

12

12

12

5

Embraer 190

19

30

 

16

5

28

49

49

2

Embraer 175

 

17

 

3

14

 

17

17

 

Embraer 170

13

 

 

10

 

3

13

13

-2

Embraer 145

2

 

 

2

 

 

2

 

 

Total Regional

43

59

0

40

19

43

102

97

0

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

265

170

99

199

66

269

534

515

10

SECOND QUARTER 2022 TRAFFIC

Passenger network activity*

 

 

Q2

 

 

Year to date

Total Passenger network*

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

17,556

5,853

199.9%

 

29,497

10,321

185.8%

Revenue pax-kilometers (m RPK)

52,479

15,931

229.4%

 

91,346

29,362

211.1%

Available seat-kilometers (m ASK)

61,697

36,417

69.4%

 

114,268

70,003

63.2%

Load factor (%)

85.1%

43.7%

41.3

 

79.9%

41.9%

38.0

 

 

 

 

 

 

 

 

Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

5,771

1,769

226.2%

 

10,155

3,338

204.2%

Revenue pax-kilometers (m RPK)

42,070

12,199

244.9%

 

74,396

23,163

221.2%

Available seat-kilometers (m ASK)

49,285

30,625

60.9%

 

92,525

59,951

54.3%

Load factor (%)

85.4%

39.8%

45.5

 

80.4%

38.6%

41.8

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Passengers carried (‘000s)

2,289

423

440.6%

 

3,530

698

406.1%

Revenue pax-kilometers (m RPK)

16,330

3,113

424.6%

 

25,386

5,143

393.6%

Available seat-kilometers (m ASK)

19,139

9,005

112.5%

 

32,291

16,068

101.0%

Load factor (%)

85.3%

34.6%

50.8

 

78.6%

32.0%

46.6

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

Passengers carried (‘000s)

767

171

347.8%

 

1,442

366

294.2%

Revenue pax-kilometers (m RPK)

7,215

1,650

337.3%

 

13,726

3,514

290.7%

Available seat-kilometers (m ASK)

8,144

5,165

57.7%

 

15,801

10,457

51.1%

Load factor (%)

88.6%

32.0%

56.6

 

86.9%

33.6%

53.3

 

 

 

 

 

 

 

 

Asia / Middle East

 

 

 

 

 

 

 

Passengers carried (‘000s)

859

327

163.0%

 

1,493

601

148.2%

Revenue pax-kilometers (m RPK)

6,117

2,190

179.2%

 

10,508

4,038

160.2%

Available seat-kilometers (m ASK)

7,390

7,103

4.0%

 

14,610

14,348

1.8%

Load factor (%)

82.8%

30.8%

51.9

 

71.9%

28.1%

43.8

 

 

 

 

 

 

 

 

Africa

 

 

 

 

 

 

 

Passengers carried (‘000s)

936

537

74.1%

 

1,751

954

83.6%

Revenue pax-kilometers (m RPK)

5,568

2,948

88.9%

 

10,360

5,214

98.7%

Available seat-kilometers (m ASK)

6,839

5,287

29.4%

 

13,137

10,088

30.2%

Load factor (%)

81.4%

55.8%

25.7

 

78.9%

51.7%

27.2

 

 

 

 

 

 

 

 

Caribbean / Indian Ocean

 

 

 

 

 

 

 

Passengers carried (‘000s)

920

310

196.5%

 

1,939

719

169.8%

Revenue pax-kilometers (m RPK)

6,840

2,298

197.7%

 

14,415

5,255

174.3%

Available seat-kilometers (m ASK)

7,773

4,065

91.2%

 

16,687

8,990

85.6%

Load factor (%)

88.0%

56.5%

31.5

 

86.4%

58.4%

27.9

 

 

 

 

 

 

 

 

Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

11,784

4,084

188.5%

 

19,342

6,983

177.0%

Revenue pax-kilometers (m RPK)

10,409

3,731

179.0%

 

16,950

6,199

173.4%

Available seat-kilometers (m ASK)

12,412

5,792

114.3%

 

21,743

10,052

116.3%

Load factor (%)

83.9%

64.4%

19.4

 

78.0%

61.7%

16.3

* Air France and KLM

Transavia activity

 

 

Q2

 

 

Year to date

Transavia

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

5,247

1,175

346.8%

 

7,828

1,527

412.8%

Revenue pax-kilometers (m RPK)

8,886

1,939

358.2%

 

13,154

2,522

421.6%

Available seat-kilometers (m ASK)

10,430

3,240

221.9%

 

15,924

4,251

274.6%

Load factor (%)

85.2%

59.9%

25.3

 

82.6%

59.3%

23.3

Total group passenger activity**

 

 

Q2

 

 

Year to date

Total group**

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

22,803

7,028

224.5%

 

37,326

11,848

215.0%

Revenue pax-kilometers (m RPK)

61,365

17,870

243.4%

 

104,499

31,884

227.7%

Available seat-kilometers (m ASK)

72,127

39,657

81.9%

 

130,192

74,254

75.3%

Load factor (%)

85.1%

45.1%

40.0

 

80.3%

42.9%

37.3

** Air France, KLM and Transavia

Cargo activity

 

 

Q2

 

 

Year to date

Total Group

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

1,731

2,087

(17.0%)

 

3,497

4,161

(16.0%)

Available tonne-km (m ATK)

3,341

2,623

27.4%

 

6,315

5,311

18.9%

Load factor (%)

51.8%

79.6%

(27.7)

 

55.4%

78.3%

(23.0)


Air France activity

 

 

Q2

 

 

Year to date

Total Passenger network activity

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

10,344

3,606

186.8%

 

17,449

6,652

162.3%

Revenue pax-kilometers (m RPK)

30,995

9,155

238.6%

 

54,082

17,723

205.1%

Available seat-kilometers (m ASK)

36,621

17,637

107.6%

 

67,491

34,052

98.2%

Load factor (%)

84.6%

51.9%

32.7

 

80.1%

52.0%

28.1


Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

3,562

1,093

225.8%

 

6,331

2,142

195.6%

Revenue pax-kilometers (m RPK)

25,065

7,017

257.2%

 

44,517

14,010

217.8%

Available seat-kilometers (m ASK)

29,459

14,336

105.5%

 

55,192

28,252

95.4%

Load factor (%)

85.1%

48.9%

36.1

 

80.7%

49.6%

31.1


Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

6,781

2,513

169.9%

 

11,116

4,510

146.5%

Revenue pax-kilometers (m RPK)

5,930

2,138

177.3%

 

9,565

3,713

157.6%

Available seat-kilometers (m ASK)

7,162

3,301

117.0%

 

12,300

5,800

112.1%

Load factor (%)

82.8%

64.8%

18.0

 

77.8%

64.0%

13.7


 

 

Q2

 

 

Year to date

Cargo activity

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

889

906

(1.8%)

 

1,796

1,812

(0.8%)

Available tonne-km (m ATK)

1,861

1,268

46.7%

 

3,518

2,602

35.2%

Load factor (%)

47.8%

71.4%

(23.6)

 

51.1%

69.6%

(18.6)

KLM activity

 

 

Q2

 

 

Year to date

Total Passenger network activity

2022

2021

Variation

 

2022

2021

Variation

Passengers carried (‘000s)

7,212

2,247

220.9%

 

12,049

3,669

228.4%

Revenue pax-kilometers (m RPK)

21,484

6,776

217.1%

 

37,264

11,639

220.2%

Available seat-kilometers (m ASK)

25,077

18,780

33.5%

 

46,777

35,951

30.1%

Load factor (%)

85.7%

36.1%

49.6

 

79.7%

32.4%

47.3


Long-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

2,209

676

226.8%

 

3,823

1,196

219.7%

Revenue pax-kilometers (m RPK)

17,005

5,183

228.1%

 

29,878

9,153

226.4%

Available seat-kilometers (m ASK)

19,827

16,289

21.7%

 

37,333

31,700

17.8%

Load factor (%)

85.8%

31.8%

53.9

 

80.0%

28.9%

51.2


Short and Medium-haul

 

 

 

 

 

 

 

Passengers carried (‘000s)

5,003

1,572

218.3%

 

8,225

2,473

232.6%

Revenue pax-kilometers (m RPK)

4,479

1,593

181.2%

 

7,385

2,486

197.1%

Available seat-kilometers (m ASK)

5,250

2,491

110.7%

 

9,443

4,251

122.1%

Load factor (%)

85.3%

63.9%

21.4

 

78.2%

58.5%

19.7


 

 

Q2

 

 

Year to date

Cargo activity

2022

2021

Variation

 

2022

2021

Variation

Revenue tonne-km (m RTK)

842

1,181

(28.7%)

 

1,701

2,349

(27.6%)

Available tonne-km (m ATK)

1,480

1,355

9.2%

 

2,797

2,710

3.2%

Load factor (%)

56.9%

87.2%

(30.3)

 

60.8%

86.7%

(25.9)


1 Change versus 31 Dec 2021

Attachment