|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.29 - 5.73|
|52 Week Range||2.61 - 7.19|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 05, 2021 - May 10, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jul 14, 2008|
|1y Target Est||10.25|
Renewed COVID-19 lockdowns are pushing Air France-KLM deeper into the red, the airline group warned on Thursday, as it chalked up a 7.1 billion euro ($8.5 billion) net loss for 2020 and postponed a key mid-term profitability goal. The airline group expects to fly 40% of its pre-crisis capacity in January-March, as tougher travel curbs in France and beyond widen losses from the 407 million euros in negative earnings before interest, taxes, depreciation and amortization (EBITDA) recorded in the fourth quarter. The past year has "tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry," Chief Executive Ben Smith said.
18 February 2021 FULL YEAR 2020 Operating Result at -4.5 billion eurosCovid-19 crisis having an unprecedented impact on Air France-KLM The Covid-19 crisis severely impacted the Full Year 2020 results: Revenue at 11.1 billion euros, down 59% compared to last yearEBITDA loss at -1.7 billion euros, limited due to cost controlGroup net employee cost down 35% in 2020 compared to last year, supported by staff reductions, state support mechanisms and activity related wages. Average number of FTEs (Full Time Equivalent) in December 2020 decreased by 8,700 compared to December 2019Operating result at –4.5 billion euros, down 5.7 billion euros compared to last yearNet income at -7.1 billion euros, including restructuring provision at -822 million euros, over-hedging at -595 million euros and fleet impairment at -672 million eurosNet debt at 11.0 billion euros, up 4.9 billion compared to end of 2019At 31 December 2020, the Group has 9.8 billion euros of liquidity and credit lines at disposal OUTLOOK After a positive Christmas traffic in Domestic France and to the Caribbean and Indian Ocean, travel restrictions were tightened in France, the Netherlands and worldwide, having a negative impact on the traffic of the Group in the first quarter of 2021. Due to the lockdown and travel restrictions still in place, the Group anticipates a challenging First quarter 2021, with a lower EBITDA compared to the Fourth Quarter 2020. There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, on both the Long Haul and Medium Haul network. In this context the Group expects capacity in Available Seat kilometers circa index 40 for Air France-KLM in the First quarter 2021 compared to 2019 for the Network passenger activity due to negative environment.The Group will progressively ramp up capacity towards summer 2021 and expects recovery in the second and third quarter 2021 thanks to the vaccine deployment. The Air France-KLM Group continues to work on quasi-equity and equity solutions in order to strengthen balance sheet and expects progress in the following weeks. Discussions are continuing with the European Comission within the “Temporary Framework” (TF). Air France-KLM GroupFourth quarterFull Year2020Change2020 Change¹Passengers (thousands)5,941-75.9%34,065-67.3%Passenger Unit revenue per ASK1 (€ cts) 3.06-52.6%4.56-31.2%Operating result (€m)-1,134-1,228-4,548-5,689Net income – Group part (€m)-1,000-1,155-7,078-7,368Adj. operating free cash flow (€m)-2,115-1,610-5,661-5,276Net debt at end of period (€m) 11,0494,902 The Board of Directors of Air France-KLM, chaired by Ms. Anne-Marie Couderc, met on 17 February 2021 to approve the financial statements for the Full Year 2020. Group CEO Mr. Benjamin Smith said: “2020 tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry. I would like to thank our employees for their dedication and tremendous flexibility during this period, which has allowed us to remain resilient despite an unprecedented drop in traffic. Since the very beginning of the crisis, we set the highest standards of health and safety for our customers and our employees, all while being able to seize Cargo opportunities and continuously adapting our flight schedules in the face of ever-changing travel restrictions.Thanks to the French- and Dutch state support and this agile way of working, we were able to drastically reduce our costs, protect our cash, and continue the execution of major transformation plans within our airlines, involving the efforts of all employees. In the coming months, we will continue to strengthen the Group's core, improving its economic and environmental performance, so that Air France-KLM will be in a position to fully leverage all opportunities when the industry starts to recover. We begin 2021 looking forward that this year will see an upturn in traffic as soon as vaccination is deployed on a large scale and borders once again reopen. Our customers look forward to being able to travel again and their attachment to Air France, KLM, and Transavia has grown stronger during this crisis.” Business review Network: In this very challenging 2020, Air France and KLM actively managed capacity with most of the flight incrementally cash positive thanks to the Cargo activity NetworkFourth quarterFull Year2020ChangeChange constant currency2020ChangeChange constant currencyTotal revenues (€m)1,986-65.5%-64.9%9,206-60.4%-60.3%Scheduled revenues (€m)1,818-66.9%-66.2%8,571-61.5%-61.3%Operating result (€m)-881-917-914-3,722-4,471-4,477 Full Year 2020 revenues decreased by 60.3% at constant currency to 9.2 billion euros. The operating result amounted to -3.7 billion euros, a 4.5 billion euros decrease at constant currency compared to last year. Measures were strengthened to preserve cash, including reduction of investments, cost savings measures, negotiations with supplier on payment terms, staff reductions and wage support measures. Passenger network: Ensure health safety on board and adapt network to cope with border restrictions Fourth quarterFull YearPassenger network2020ChangeChange constant currency2020ChangeChange constant currencyPassengers (thousands)5,211-75.6% 28,883-67.0% Capacity (ASK m)34,900-53.3% 138,168-53.9% Traffic (RPK m) 14,351-77.9% 81,212-69.2% Load factor 41.1%-45.8 pt 58.8%-29.2 pt Total passenger revenues (€m)1,126-78.3%-78.0%6,638-68.6%-68.4%Scheduled passenger revenues (€m)1,054-79.0%-78.6%6,325-69.0%-68.8%Unit revenue per ASK (€ cts) 3.02-55.0%-54.1%4.58-32.8%-32.4% The passenger network activity in the fourth quarter was, as anticipated, strongly reduced at 46% of last year’s level. The tightening of travel restrictions, border closures and absence of corporate travel delayed the expected traffic recovery. October and November were weak in term of traffic compared to a stronger December, thanks to Christmas traffic increase in Domestic France and to Caribbean and Indian Ocean. 2020 was an unprecedented year for the airline industry and Air France-KLM with: a good start in January and February; a worldwide lockdown with repatriation flights during the second quarter followed by hopes of a resumption of traffic during summer and a last quarter marked by increased travel restrictions and some traffic during Christmas. The Full year 2020 capacity was severely impacted by the Covid-19 crisis, at 46% of last year’s level while the traffic decreased by 69%, mainly due to travel restrictions in place. The Group had an agile capacity management and was able to ramp-up capacity during summer and Christmas periods with resilient performance on low border restrictions routes (French Domestic, Caribbean & Indian Ocean and Africa & Middle East). The balanced network of Air France and KLM spread over the different regions of the world was a strong asset during the Covid-19 crisis, which partly explained why the Group operates more capacity than competitors. The strategy was to operate incremental cash positive flights and several routes were taking advantage of the strong worldwide cargo demand thanks to industry under capacity. During 2020, the Group accelerated the phase-out of different aircraft to cope with the lower demand in the following years (Airbus 380, Airbus 340, Boeing 747, Canadair Jet and Embraer 145). Air France-KLM Group continues to implement the highest safety standards for its customers and employees to counter virus transmission risks. Both Air France and KLM achieved 4 stars in the Skytrax “Covid-19 Airline Safety Rating”, one of highest score. Cargo: Strong steering unit revenue in a context of industry under capacity Fourth quarterFull YearCargo business2020ChangeChange constant currency2020ChangeChange constant currencyTons (thousands)268-6.8% 880-20.8% Capacity (ATK m)2,812-24.3% 10,120-30.7% Traffic (RTK m) 2,082-5.7% 6,829-19.4% Load factor 74.0%+14.6 pt 67.5%+9.5 pt Total Cargo revenues (€m)860+53.9%+58.2%2,568+19.3%+19.9%Scheduled cargo revenues (€m)764+59.4%+63.6%2,246+21.9%+22.5%Unit revenue per ATK (€ cts ) 27.18+110.5%+116.1%22.20+75.9%+76.8% Global air cargo capacity was at the end of the Fourth quarter 2020 approximately 20% lower than 2019. Tightening of supply and demand levels increased yields by significant amount over the past months. December was the eighth consecutive month of gradual air cargo market improvements and Air France-KLM’s Cargo activity continued to strongly perform with a unit revenue at constant currency up 116.1% in the Fourth quarter 2020. The 2020 Cargo capacity of the Group has been down 30.7%, primarily driven by the reduction in belly capacity of passenger aircraft, partly offset by the increase of the full freighters’ capacity and mini cargo flights (passenger aircraft with only belly capacity commercialized). The yield and load factors were strongly up, resulting in a unit revenue increase of 76.8% at constant currency, thanks to the gap between industry capacity and demand. The Group benefited from a full freighter fleet of six aircraft and a passenger long-haul fleet well suited for the cargo activity (Boeing 777, Boeing 787, and Airbus 350). On the demand side, world-wide air freight volumes are down due to Covid-19 crisis but are expecting to recover consistently with trade growth and industrial production. The supply-demand gap of the past months is foreseen to narrow once industry capacity supply will increase which depends on the passenger traffic recovery. Air France-KLM is ready to transport the Covid-19 vaccines worldwide and has already delivered them to several destinations successfully. The volumes will gradually increase during the first half of 2021. Transavia: Well positioned for the recovery with a first step on the French domestic market Fourth quarterFull YearTransavia2020Change2020ChangePassengers (thousands)730-77.7%5,182-68.7%Capacity (ASK m)2,134-67.9%13,312-59.5%Traffic (RPK m) 1,323-78.2%9,828-67.6%Load factor 62.0%-29.3 pt73.8%-18.4 ptTotal passenger revenues (€m)85-74.8%606-65.2%Unit revenue per ASK (€ cts) 3.67-26.1%4.41-17.4%Unit cost per ASK (€ cts)8.01+48.8%6.65+34.7%Operating result (€m)-93-65-299-430 The Fourth quarter operating result ended -65 million euros lower compared to last year at an operational loss of -93 million euros, as a result of the Covid-19 crisis and tightened border restrictions in Europe and North Africa. Full year 2020 activity levels were close to 40% of last year’s level, with a unit revenue down -17.4% compared to 2019. Load factors at 73.8% were impacted by travel restrictions imposed. During 2020, Transavia operated more than 150 repatriation flights from Europe and North Africa enabling 28,000 passengers to be brought back before temporarily immobilizing its entire fleet. In June, Transavia gradually resumed flights by constantly adapting operations to Covid-19 rules and has enabled many travelers to enjoy leisure destination during summer. However, the resurgence of Covid-19 and border restrictions have slowed down Transavia in the traffic recovery during the fourth quarter 2020. Strict cash preservation measures are still in place including reduction of investments, cost savings measures, negotiations with supplier on payment terms and wage support measures. Several CLA agreements have been reached in both Transavia Netherlands and France about labor conditions and restructuring measures. Transavia France started French domestic operations during the fourth quarter 2020 from Paris Orly and regional airports. Transavia plan to grow is still valid, well positioned to capture the leisure traffic recovery foreseen in the coming months and a major opportunity for the Group’s competitiveness gain. Maintenance: Activity severely impacted by the decrease of airline’s activities Fourth quarterFull YearMaintenance2020ChangeChange constant currency2020ChangeChange constant currencyTotal revenues (€m)603-48.2% 2,858-38.1% Third-party revenues (€m)286-44.5%-40.5%1,248-41.6%-41.4%Operating result (€m)-177-267-257-543-803-798Operating margin (%)-29.4%-37.1 pt-36.5 pt-19.0%-24.6 pt-24.5 pt The Fourth quarter operating result stood at -177 million euros, a decrease of 267 million euros, highly impacted by the Covid-19 crisis. Maintenance continued to sign new contracts in the fourth quarter and are included in the order book at year end. During 2020, external revenues declined by 41.6% and the decreased in Air France-KLM Group airlines activities impacted the total revenues. Operating costs have been reduced by a lower maintenance activity level, staff reductions, wage support measures for employees and other initiated cost savings measures. Operating results stood at -543 million euros, down 803 million euros compared to last year.Covid-19 generated around 320 million euros exceptional items, of which 120 million of doubtful receivable, 110 million euros provision on asset value and 90 million euros regarding contracts review. The Maintenance order book is assessed to 9.1 billion dollars at 31 December 2020, a decrease of 2.4 billion dollars compared to 31 December 2019, explained by the Covid-19 crisis. The Maintenance business is carefully managing agreements with clients on payment terms. Air France-KLM maintenance activity is well positioned on new generation aircraft maintenance and foresees solid opportunities for the future. Air France-KLM Group: Financial metrics severely impacted by Covid-19, a decrease of €5.8bn in EBITDA mitigated by cost control Fourth quarterFull Year 2020ChangeChange constant currency2020ChangeChange constant currencyCapacity (ASK m)37,034-54.5% 151,480-54.4% Traffic (RPK m)15,673-77.9% 91,040-69.0% Passenger unit revenue per ASK (€ cts) 3.06-53.5%-52.6%4.56-31.6%-31.2%Group unit revenue per ASK (€ cts) 5.12-28.5%-27.1%6.05-16.3%-15.8%Group unit cost per ASK (€ cts) at constant fuel8.18+16.1%+25.9%9.05+31.6%+36.9%Revenues (€m)2,363-64.3%-63.5%11,088-59.2%-59.1%EBITDA (€m)-407-1,272-1,260-1,689-5,816-5,814Operating result (€m) -1,134-1,228-1,215-4,548-5,689-5,685Operating margin (%)-48.0%-49.4 pt-49.2 pt-41.0%-45.2 pt-45.2 ptNet income - Group part (€m)-1,000-1,155 -7,078-7,368 In Full Year 2020, the Air France-KLM Group posted an operating result of -4.5 billion euros, down by 5.7 billion euros compared to last year. Net income amounted to -7.1 billion euros in the Full Year 2020, a decrease of 7.4 billion euros compared to last year, of which exceptional accounting items due to Covid-19: Restructuring costs provision of -822 million euros with Departure Plan at Air France Group and KLM GroupFuel over hedge has been recycled to “Other financial income and expenses” for -595 million eurosFleet impairment of -672 million, mainly caused by -553 million euros on Airbus A380 Since the beginning of the crisis, Air France, KLM and Transavia proceeded 2.3 billion euros of refunds to customers, with 0.8 billion euros during the fourth quarter 2020. The Full year 2020 unit cost increased by 36.9%, primarily caused by Covid-19 related capacity reductions Group net employee costs were down 35% in 2020 compared to last year, supported by staff reductions, partial activity implementation at Air France and compensated staff cost by the NOW mechanism at KLM and no profit sharing provisions to be made at both airlines. The average number of FTEs (Full Time Equivalent) stood at 76,900 in December 2020, down 8,700 compared to December 2019. Net debt up 4.9 billion euros Fourth quarterFull YearIn € million2020Change2020ChangeCash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)-661-1,440-2,586-6,370Cash out related to Voluntary Departure Plans (€m)-253-244-405-381Change in Working Capital Requirement (WCR) (€m)-502-547165+30Net cash flow from operating activities (€m)-1,416-2,231-2,826-6,721Net investments* (€m)-421+639-1,895+1,377Operating free cash flow (€m)-1,837-1,592-4,721-5,344Repayment of lease debt-278-18-940+68Adjusted operating free cash flow**-2,115-1,610-5,661-5,276 * 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 Full Year 2020 of -5.7 billion euros, a decrease of 5.3 billion euros compared to last year, mainly explained by a net cash flow from operating activities decline of 6.7 billion euros, partly offset by a reduction in net investments of 1.4 billion euros. Strong focus on working capital management in all businesses has led to a positive change of +165 million euros in 2020, thanks to tax & social charges deferrals, negotiations with suppliers and vouchers policy which compensated the refunds process and the low inflow of bookings. In € million31 Dec 202031 Dec 2019Net debt 11,0496,147EBITDA trailing 12 months-1,6894,128Net debt/EBITDA trailing 12 monthsna1.5 x Both airlines results negatively impacted in 2020 Fourth quarterFull Year 2020Change2020ChangeAir France Group Operating result (€m)-989-970-3,389-3,669Operating margin (%)-73.3%-72.8 pt-52.8%-54.5 ptKLM Group Operating result (€m)-152-271-1,154-2,007Operating margin (%)-13.4%-17.8 pt-22.5%-30.2 pt OUTLOOK After a positive Christmas traffic in Domestic France and to the Caribbean and Indian Ocean, travel restrictions were tightened in France, the Netherlands and worldwide, having a negative impact on the traffic of the Group in the first quarter of 2021. There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, on both the Long Haul and Medium Haul network. The Group will progressively ramp up capacity towards summer 2021 and expects recovery in the second and third quarter 2021 thanks to the vaccine deployment. For the time being, KLM is not able to execute passenger flights between the Netherlands and South Africa, South America and the UK while France banned all non-essential travel from and to France. Instead of gradually increasing capacity during the First Quarter, the capacity had to be reduced. In this context the Group expects: ·Capacity in Available Seat kilometers circa index 40 for Air France-KLM in the First quarter 2021 compared to 2019 for the Network passenger activity due to negative environment. Given the under capacity in the Cargo industry, strong steering options for the First quarter 2021 remain available, although future performance is pending passenger industry recovery. Due to the lockdown and travel restrictions still in place, The Group anticipates a challenging First quarter 2021, with a lower EBITDA compared to the Fourth Quarter 2020. At 31 December 2020, the Group has a solid 9.8 billion euros of liquidity and credit lines at disposal. The Group foresees liquidity requirements in 2021 with: Negative First quarter working capital requirement influenced by deferred payments and substantial low level of new bookingsCapex spending before fleet financings at 2.0 billion euros in 2021Restructuring cash out at 0.5 billion euros in 2021 Guidance : Air France-KLM Group medium term operating margin objective unchanged but delayed The Group accelerates its transformation initiatives and confirms its medium-term financial ambition. The Group continues to balance its medium-term focus on managing liquidity with the long-term focus on achieving increased competitiveness. To do this, the Group continues to optimize, fleet, labour, network and costs. The Covid-19 crisis is showing an unprecedented impact on traffic. In order to anticipate on this decline in traffic. The Group estimates the number of aircraft in 2022 to be 7% below the number of aircraft in 2019. The Group expects capacity in ASK back to the 2019 levels only in 2024. By the end of 2020 the Group managed to decrease the number of FTE already by 10% compared to December 2019. In the coming years the number of FTE will further decrease by circa 6,000 FTE. The reduction in FTE, amongst other key transformation initiatives, will drive the unit cost down 8% to 10% once capacity is back at 2019 level. The Group’s medium-term financial ambition is maintained with an Adjusted Operating Free Cash Flow expected to be positive again in 2023. The Operating Margin mid-cycle objective is still estimated at 7% to 8%. ****** The audit procedures for the consolidated accounts have taken place. Despite uncertainties, the Board of Directors considered appropriate to prepare the financial statements for the year ended December 31, 2020 on the basis of the going concern principle.For further information, please refer to Note 2 of the consolidated financial statements. The certification report will be published following the completion of the procedures necessary for the filing of the Universal Registration Document. The results presentation is available at www.airfranceklm.com on 18 February 2021 from 7:15 am CET. A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO) will be held on 18 February 2021 at 08.30 CET. To connect to the conference call, please dial: France: Local +33 (0)1 76 77 22 57Netherlands: Local +31 (0)20 703 8261UK: Local +44 (0)330 336 9411US: Local +1 720-543-0206 Confirmation code: 7443591 Investor Relations PressOlivier Gall Antoine Madre +33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 firstname.lastname@example.org email@example.com Income Statement Fourth quarterFull Year€m20202019Change20202019ChangeSales2,3636,616-64.3%11,08827,188-59.2%Other revenues01-100.0%01-100.0%Revenues2,3636,617-64.3%11,08827,189-59.2%Aircraft fuel-506-1,393-63.7%-2,392-5,511-56.6%Chartering costs-72-118-39.0%-253-525-51.8%Landing fees and en route charges-226-462-51.1%-969-1,933-49.9%Catering-59-205-71.2%-294-822-64.2%Handling charges and other operating costs-188-422-55.5%-833-1,715-51.4%Aircraft maintenance costs-375-708-47.0%-1,618-2,628-38.5%Commercial and distribution costs-55-246-77.6%-346-1,029-66.4%Other external expenses -342-437-21.7%-1,275-1,730-26.3%Salaries and related costs-1,076-2,108-49.0%-5,300-8,139-34.9%Taxes other than income taxes-29-35-17.1%-137-154-11.0%Other income and expenses158382-58.6%6401,125-43.1%EBITDA-407865nm-1,6894,128nmAmortization, depreciation and provisions-727-771-5.7%-2,859-2,987-4.3%Income from current operations-1,13494nm-4,5481,141nmSales of aircraft equipment6-2nm3722+68.2%Other non-current income and expenses-38-19+99.9%-1,489-153+873%Income from operating activities-1,16673nm-6,0001,010nmCost of financial debt-146-110+32.7%-496-442+12.2%Income from cash and cash equivalent19-88.9%1949-61.2%Net cost of financial debt-145-101+43.6%-477-393+21.4%Other financial income and expenses171120+42.5%-451-271+66.4%Income before tax-1,14092nm-6,928346nmIncome taxes14556+158.9%-97-76+27.6%Net income of consolidated companies-995148nm-7,025270nmShare of profits (losses) of associates-68nm-5823nmNet income for the period-1,001156nm-7,083293nmMinority interest-11nm-53nmNet income for the period – Group part-1,000155nm-7,078290nm 2019 results restated (with a similar impact in both years) for limited life parts componentization accounting change. Consolidated Balance Sheet Assets31 Dec 202031 Dec 2019In million eurosGoodwill215217Intangible assets1,2301,305Flight equipment11,03111,334Other property, plant and equipment1,5481,580Right-of-use assets4,6785,173Investments in equity associates230307Derivatives assets long term92238Pension assets211420Other financial assets7951,096Deferred tax assets282523Other non-current assets43Total non-current assets20,31622,196Other short-term financial assets607800Derivatives assets short term160258Inventories543737Trade receivables1,2482,164Other current assets914865Cash and cash equivalents6,4233,715Total current assets9,8958,539Total assets30,21130,735 Liabilities and equity31 Dec 202031 Dec 2019In million eurosIssued capital429429Additional paid-in capital4,1394,139Treasury shares-25-67Perpetual0403Reserves and retained earnings-9,970-2,620Equity attributable to equity holders of Air France-KLM-5,4272,284Non-controlling interests915Total Equity-5,4182,299Pension provisions2,1472,253Other provisions3,6703,750Long-term debt14,1716,271Lease financial debt2,4253,149Derivatives liabilities long term122107Deferred tax liabilities22142Other non-current liabilities1,294115Total non-current liabilities23,85115,787Provisions1,337714Current portion of long-term debt1,318842Current portion of lease financial debt839971Derivatives liabilities short term363154Trade payables1,4352,379Deferred revenue on ticket sales2,3943,289Frequent flyer programs916848Other current liabilities3,1753,448Bank overdrafts14Total current liabilities11,77812,649Total equity and liabilities30,21130,735 Statement of Consolidated Cash Flows from 1st Jan until 31 december 2020 €m31 Dec 202031 Dec 2019Net income from continuing operations-7,083293Amortization, depreciation and operating provisions2,8592,987Financial provisions183217Loss (gain) on disposals of tangible and intangible assets-50-43Loss (gain)on disposals of subsidiaries and associates10Derivatives – non monetary result-2730Unrealized foreign exchange gains and losses, net-29082Impairment6800Other non-monetary items511238Share of (profits) losses of associates58-23Deferred taxes167-21Financial Capacity-2,9913,760(Increase) / decrease in inventories138-93(Increase) / decrease in trade receivables76061Increase / (decrease) in trade payables-898-133Increase / (decrease) in advanced ticket sales-837160Change in other receivables and payables1,002140Change in working capital requirements165135Net cash flow from operating activities-2,8263,895Purchase of property, plant and equipment and intangible assets-2,099-3,372Proceeds on disposal of property, plant and equipment and intangible assets204100Proceeds on disposal of subsidiaries, of shares in non-controlled entities35713Acquisition of subsidiaries, of shares in non-controlled entities-1-1Dividends received014Decrease (increase) in net investments, more than 3 months-44-72Net cash flow used in investing activities-1,583-3,318Increase of equity due to new convertible bond054Perpetual (including premium)00Issuance of debt11,4371,617Repayment on financial debt-3,389-1,156Payments on lease debt-940-1,008Decrease (increase ) in loans, net3972Dividends and coupons on perpetual paid0-26Net cash flow from financing activities7,147-447Effect of exchange rate on cash and cash equivalents and bank overdrafts-271Change in cash and cash equivalents and bank overdrafts2,711131Cash and cash equivalents and bank overdrafts at beginning of period3,7113,580Cash and cash equivalents and bank overdrafts at end of period6,4223,711Change in treasury of discontinued operations00 Key Performance Indicators Restated net result, group share Fourth quarterFull YearIn million euros2020201920202019Net income/(loss), Group share -1,000155-7,078290Unrealized foreign exchange gains and losses, net-212-141-29082Change in fair value of financial assets and liabilities (derivatives) -97-20-27-29Non-current income and expenses 31221,452131Tax impact on gross adjustments net result 78-42-323-55Restated net income/(loss), group part-1,200-27-6,266419Coupons on perpetual0-40-17Restated net income/(loss), group share including coupons on perpetual (used to calculate earnings per share)-1,200-31-6,266402Restated net income/(loss) per share (in €)-2,810,14-14,660,95 Return on capital employed (ROCE)1 In million euros31 Dec 202030 Sep 202030 June 202031 Mar 202031 Dec 201930 Sep 201930 June 201931 Mar 2019Goodwill and intangible assets1,4451,4701,5001,5641,5221,4811,4651,485Flight equipment11,03111,00910,91911,46511,33410,82910,74710,456Other property, plant and equipment1,5481,5351,5511,5791,5801,5541,5301,504Right of use assets4,6784,7894,9385,1195,1735,3005,4705,453Investments in equity associates230224267299307310305306Financial assets excluding marketable securities and financial deposits146135133142140131125127Provisions, excluding pension, cargo litigation and restructuring-3,922-4,001-4,130-4,190-4,058-4,101-3,888-3,907WCR, excluding market value of derivatives-6,505-6,894-6,779-6,650-6,310-6,285-6,957-6,938Capital employed 8,6518,2678,3999,3289,6889,2198,7978,486Average capital employed (A)8,6619,048Adjusted results from current operations-4,5481,141- Dividends received0-2- Share of profits (losses) of associates-5823- Normative income tax1,394-318Adjusted result from current operations after tax (B)-3,212844ROCE, trailing 12 months (B/A)-37.1%9.3% Net debt Balance sheet at€m31 Dec 202031 Dec 2019Financial debt15,3886,886Repo on triple A bonds-840Lease debt3,1844,029Currency hedge on financial debt274Accrued interest-107-62Gross financial debt (A)18,40810,857Cash and cash equivalents6,4233,715Marketable securities193111Cash securities309300Bonds AAA518585Bank overdrafts-1-4Others13Repo on triple A bonds-840Net cash (B)7,3594,710Net debt (A) – (B)11,0496,147 Adjusted operating free cash flow Fourth quarterFull Year€m2020201920202019Net cash flow from operating activities, continued operations-1,416815-2,8263,895Investment in property, plant, equipment and intangible assets-444-1,077-2,099-3,372Proceeds on disposal of property, plant, equipment and intangible assets 2317204100Operating free cash flow-1,837-245-4,721623Payments on lease debt-278-260-940-1,008Adjusted operating free cash flow-2,115-505-5,661-385 Operating cash burn Full Year 20202019EBITDA - 1,689 4,128 Provisions (CO2 and other) -22 18 Correction of spare parts inventory 4 -1Addition to pension provisions 306 341 Reversal to pension provisions (cash-out) -246 -256Payment linked with shares0 1 Sales of tangible and intangible assets (excluding aeronauticals) 41 46 Dividend received0 -2Income from operation activities - cash impact -1,605 4,275 Restructuring costs -405 -24Other non-current income and expenses -1 1 Cost of financial debt -446 -422Financial income -2 23 Realized foreign exchange gain/loss 7 -1Termination of trading hedges - cash -589 4 Current income tax 70 -97Other financial charges & expenses - cash -22 -7Other elements 3 8 Financial capacity -2,991 3,760 Unit cost: net cost per ASK Fourth quarterFull Year 2020201920202019Revenues (in €m)2,3636,61711,08827,189Income/(loss) from current operations (in €m) -/-1,134-944,548-1,141Total operating expense (in €m)3,4976,52315,63726,048Passenger network business – other revenues (in €m)-72-178-314-711Cargo network business – other revenues (in €m)-96-79-322-310Third-party revenues in the maintenance business (in €m)-286-515-1,248-2,138Transavia - other revenues (in €m)-7-7-2010Third-party revenues of other businesses (in €m)-6-7-28-34Net cost (in €m)3,0315,73613,70622,864Capacity produced, reported in ASK*37,03481,363151,480332,473Net cost per ASK (in € cents per ASK)8.187.059.056.88Gross change 16.1% 31.6%Currency effect on net costs (in €m) -102 -121Change at constant currency 18.2% 32.3%Fuel price effect (in €m) adjusted for 2019 capacity -342 -771Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)8.186.509.056.61Change at constant currency and fuel price basis +25.9% +36.9% * 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 resultsAir France Group Fourth quarterFull Year 2020Change2020ChangeRevenue (in €m)1,349-66.7%6,415-61.3%EBITDA (in €m)-514-980-1,609-3,781Operating result (en m€)-988-970-3,389-3,669Operating margin (%)-73.3%-72.8 pt-52.8%-54.5 ptOperating cash flow before WCR and restructuring cash out (in €m)-669-1,012-2,188-2,188Operating cash flow (before WCR and restructuring) margin-49.6%-58.0 pt-34.1%-34.1 ptKLM Group Fourth quarterFull Year 2020Change2020ChangeRevenue (in €m)1,136-57.8%5,120-53.8%EBITDA (in €m)101-304-75-2,017Operating result (en m€)-152-271-1,154-2,007Operating margin (%)-13.4%-17.8 pt-22.5%-30.2 ptOperating cash flow before WCR and restructuring cash out (in €m)17-416-340-340Operating cash flow (before WCR and restructuring) margin1.5%-14.6 pt-6.6%-6.6 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 December 2020 Aircraft typeAF (incl. HOP)KL (incl. KLC & MP)TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange / 31/12/19B747-400 2 2 2 -8B777-3004314 1817225757 B777-2002515 26 144040 B787-91013 651223231B787-10 6 42 651A380-8009 2349 -10A350-9006 15 663A340-3001 1 1 -4A330-300 5 555 A330-200158 11 122321-2Total Long-Haul109630713269172157-19B737-900 5 5 55 B737-800 31752910671061062B737-700 16525142120-3A32120 11 92020 A32044 443644441A31933 14 193333 A31818 8 101818 Total Medium-Haul115528073191552472460ATR72-600 -2ATR72-500 ATR42-500 Canadair Jet 100014 14 1414 Canadair Jet 70011 11 119-1Embraer 1901732 11102849492Embraer 175 17 314 1717 Embraer 17015 10 51515 Embraer 14515 15 15 -13Total Regional72490642433121104-14B747-400ERF 3 3 33 B747-400BCF 1 1 11 B777-F2 2 22 Total Cargo240600660 Total2981688021475257546513-33 FOURTH QUARTER 2020 TRAFFIC Passenger network activity* Q4 Year to date Total Passenger network*20202019Variation 20202019VariationPassengers carried (‘000s)5,21121,347(75.6%) 28,88387,634(67.0%)Revenue pax-kilometers (m RPK)14,35164,943(77.9%) 81,212263,509(69.2%)Available seat-kilometers (m ASK)34,90074,723(53.3%) 138,167299,624(53.9%)Load factor (%)41.1%86.9%(45.8) 58.8%87.9%(29.2) Long-haul Passengers carried (‘000s)1,5917,031(77.4%) 8,66328,320(69.4%)Revenue pax-kilometers (m RPK)11,23953,128(78.8%) 64,022213,664(70.0%)Available seat-kilometers (m ASK)29,74960,648(50.9%) 112,586240,774(53.2%)Load factor (%)37.8%87.6%(49.8) 56.9%88.7%(31.9) North America Passengers carried (‘000s)3062,074(85.3%) 2,1768,760(75.2%)Revenue pax-kilometers (m RPK)2,26014,751(84.7%) 15,65762,245(74.8%)Available seat-kilometers (m ASK)7,97216,561(51.9%) 31,38169,677(55.0%)Load factor (%)28.3%89.1%(60.7) 49.9%89.3%(39.4) Latin America Passengers carried (‘000s)183935(80.5%) 1,1513,664(68.6%)Revenue pax-kilometers (m RPK)1,7668,780(79.9%) 10,94334,753(68.5%)Available seat-kilometers (m ASK)4,84810,160(52.3%) 18,37239,135(53.1%)Load factor (%)36.4%86.4%(50.0) 59.6%88.8%(29.2) Asia / Pacific Passengers carried (‘000s)1731,689(89.8%) 1,5346,659(77.0%)Revenue pax-kilometers (m RPK)1,49114,610(89.8%) 13,29458,008(77.1%)Available seat-kilometers (m ASK)6,32616,390(61.4%) 27,02864,124(57.9%)Load factor (%)23.6%89.1%(65.6) 49.2%90.5%(41.3) Africa / Middle East Passengers carried (‘000s)5341,395(61.8%) 2,0975,484(61.8%)Revenue pax-kilometers (m RPK)2,8158,040(65.0%) 11,64031,157(62.6%)Available seat-kilometers (m ASK)5,7289,595(40.3%) 18,06636,955(51.1%)Load factor (%)49.1%83.8%(34.6) 64.4%84.3%(19.9) Caribbean / Indian Ocean Passengers carried (‘000s)396938(57.7%) 1,7053,753(54.6%)Revenue pax-kilometers (m RPK)2,9086,948(58.1%) 12,48827,500(54.6%)Available seat-kilometers (m ASK)4,8757,942(38.6%) 17,73930,883(42.6%)Load factor (%)59.7%87.5%(27.8) 70.4%89.0%(18.6) Short and Medium-haul Passengers carried (‘000s)3,62014,316(74.7%) 20,22059,314(65.9%)Revenue pax-kilometers (m RPK)3,11111,815(73.7%) 17,19049,845(65.5%)Available seat-kilometers (m ASK)5,15114,074(63.4%) 25,58158,851(56.5%)Load factor (%)60.4%83.9%(23.5) 67.2%84.7%(17.5) * Air France and KLM Transavia activity Q4 Year to date Transavia20202019Variation 20202019VariationPassengers carried (‘000s)7303,266(77.7%) 5,18216,581(68.7%)Revenue pax-kilometers (m RPK)1,3236,064(78.2%) 9,82830,303(67.6%)Available seat-kilometers (m ASK)2,1346,640(67.9%) 13,31232,867(59.5%)Load factor (%)62.0%91.3%(29.3) 73.8%92.2%(18.4) Total group passenger activity** Q4 Year to date Total group**20202019Variation 20202019VariationPassengers carried (‘000s)5,94124,614(75.9%) 34,065104,214(67.3%)Revenue pax-kilometers (m RPK)15,67371,007(77.9%) 91,040293,812(69.0%)Available seat-kilometers (m ASK)37,03481,363(54.5%) 151,480332,492(54.4%)Load factor (%)42.3%87.3%(44.9) 60.1%88.4%(28.3) ** Air France, KLM and Transavia Cargo activity Q4 Year to dateTotal Group20202019Variation 20202019VariationRevenue tonne-km (m RTK)2,0822,207(5.7%) 6,8298,467(19.3%)Available tonne-km (m ATK)2,8123,713(24.3%) 10,12114,609(30.7%)Load factor (%)74.0%59.4%14.6 67.5%58.0%9.5 Air France activity Q4 Year to date Total Passenger network activity20202019Variation 20202019VariationPassengers carried (‘000s)3,01712,698(76.2%) 17,65252,542(66.4%)Revenue pax-kilometers (m RPK)7,94637,584(78.9%) 47,339154,033(69.3%)Available seat-kilometers (m ASK)16,41643,863(62.6%) 73,325177,172(58.6%)Load factor (%)48.4%85.7%(37.3) 64.6%86.9%(22.4)Long-haul Passengers carried (‘000s)9564,122(76.8%) 5,19916,845(69.1%)Revenue pax-kilometers (m RPK)6,28430,571(79.4%) 36,952124,235(70.3%)Available seat-kilometers (m ASK)13,76335,338(61.1%) 58,194141,282(58.8%)Load factor (%)45.7%86.5%(40.9) 63.5%87.9%(24.4)Short and Medium-haul Passengers carried (‘000s)2,0608,576(76.0%) 12,45335,697(65.1%)Revenue pax-kilometers (m RPK)1,6627,013(76.3%) 10,38729,798(65.1%)Available seat-kilometers (m ASK)2,6548,525(68.9%) 15,13135,890(57.8%)Load factor (%)62.6%82.3%(19.6) 68.6%83.0%(14.4) Q4 Year to dateCargo activity20202019Variation 20202019VariationRevenue tonne-km (m RTK)843994(15.3%) 2,6443,789(30.2%)Available tonne-km (m ATK)1,3471,867(27.9%) 4,7377,356(35.6%)Load factor (%)62.6%53.3%9.3 55.8%51.5%4.3 KLM activity Q4 Year to date Total Passenger network activity20202019Variation 20202019VariationPassengers carried (‘000s)2,1958,650(74.6%) 11,23135,092(68.0%)Revenue pax-kilometers (m RPK)6,40527,359(76.6%) 33,873109,476(69.1%)Available seat-kilometers (m ASK)18,48430,859(40.1%) 64,842122,452(47.0%)Load factor (%)34.7%88.7%(54.0) 52.2%89.4%(37.2)Long-haul Passengers carried (‘000s)6352,909(78.2%) 3,46311,475(69.8%)Revenue pax-kilometers (m RPK)4,95622,557(78.0%) 27,07089,428(69.7%)Available seat-kilometers (m ASK)15,98625,310(36.8%) 54,39299,492(45.3%)Load factor (%)31.0%89.1%(58.1) 49.8%89.9%(40.1)Short and Medium-haul Passengers carried (‘000s)1,5605,740(72.8%) 7,76723,617(67.1%)Revenue pax-kilometers (m RPK)1,4494,802(69.8%) 6,80320,047(66.1%)Available seat-kilometers (m ASK)2,4975,550(55.0%) 10,45022,960(54.5%)Load factor (%)58.0%86.5%(28.5) 65.1%87.3%(22.2) Q4 Year to dateCargo activity20202019Variation 20202019VariationRevenue tonne-km (m RTK)1,2421,2122.4% 4,1844,678(10.6%)Available tonne-km (m ATK)1,4661,846(20.6%) 5,3857,253(25.8%)Load factor (%)84.7%65.6%19.1 77.7%64.5%13.2 1 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency 1 The definition of ROCE has been revised to take into account the seasonal effects of the activity. Attachment Q4_2020 Press release EN final
Struggling airline Air France-KLM warned there was more pain to come — but is poised to seal another volley of state aid after recording a €7.1bn net loss in 2020 owing to the Covid-19 pandemic. The protracted talks, with its two largest shareholders, the French and Dutch states, along with the European Commission, include the EU pushing Air France-KLM to give up aeroplane slots at Paris Orly and Amsterdam Schiphol airports in exchange for aid. Air France-KLM has already slashed thousands of jobs to cut costs, with the headline loss including restructuring charges linked to lay-offs with another 6,000 planned “in the coming years”.