31 October 2019

RESULTS AS AT 30 SEPTEMBER 2019

Resilient operating result at 900 million euros in a challenging macro-economic context

THIRD QUARTER 2019

  • Passenger growth up 2.1% and load factor up 0.2 point.
  • Passenger unit revenue slightly down by -0.6%, as a consequence of the macro-economic context.
  • Unit costs slightly  increase by 0.4% at constant currency and fuel, on track for full year guidance.
  • Operating result at 900 million euros, down by 165 million euros compared to the third quarter 2018, with revenues up 2% and fuel expenses up 135 million euros.
  • Net income at 366 million euros, down by 420 million euros compared to last year impacted by a stronger dollar end of September and Airbus A380 phase-out financial impact of 100 million euros.
  • Reduction in Group net debt, down by 253 million euros to 5.9 billion euros and Net debt/EBITDA ratio at 1.5x, stable compared to 31 December 2018.

OUTLOOK 2019

  • Based on the current data for the Passenger network:
    • Long-haul forward booking load factors from November to March are on average ahead compared to last year.
    • Network passenger unit revenue for the fourth quarter 2019 at constant currency expected to be slightly down compared to last year.
  • Full year guidance update:
    • The Group will pursue initiatives to reduce unit costs, with a targeted 2019 reduction of between -1% and 0% at constant currency and fuel price.
    • The 2019 fuel bill is expected to increase by 600 million euros compared to 2018 to 5.5 billion euros, based on the forward curve of 25 October 2019.
    • Net debt/ EBITDA ratio at/below 1.5x.

“Air France-KLM Group’s performance in the third quarter showed resilience amid geopolitical uncertainties and softening macro-economic environment.” said Benjamin Smith, CEO of Air France-KLM Group. “Operationally, we achieved a solid performance during the Summer peak travel period.  Air France and KLM ranked in the top European legacy carriers in terms of punctuality. Based on long-haul forward bookings on average ahead of last year and renewed commitment to a strict cost discipline, we are confident that we can deliver on our annual objectives of reduced unit cost and stable leverage ratio. All the Group’s employees are mobilized to ensure the success of our strategic ambitions, which we will further outline on the occasion of the upcoming Investor Day next week.” 

Air France-KLM GroupThird quarterNine months
2019Change2019Change
Passengers (thousands)29,119+2.1%79,593+3.4%
Passenger Unit revenue per ASK1 (€ cts) 7.08-0.6%6.69-0.5%
Operating result (€m)900-165997-295
Net income – Group part (€m)366-420126-501
Adj. operating free cash flow (€m)-235-221116-11
Net debt at end of period (€m)  5,911-253

Third quarter 2019 business review 

Network: Softer Passenger demand, Cargo industry still under pressure

NetworkThird quarter Nine months
2019ChangeChange
constant currency		2019ChangeChange
constant currency
Total revenues (€m)6,460+0.5%-0.7%17,651+2.5%+1.4%
Scheduled revenues (€m)6,151+0.9%-0.4%16,752+2.6%+1.3%
Operating result (€m)649-161-180660-300-249

Third quarter 2019 revenues decreased by -0.7% at constant currency to 6.5 billion euros, mostly impacted by cargo industry pressure. The operating result amounted to 649 million euros, a 180 million euro decrease at constant currency compared to last year, mainly explained by rise of fuel expenses besides revenue pressure.

Passenger network: French domestic unit revenue lifted by capacity reduction, and Long-Haul impacted by trading environment and a high year on year comparison base

 Third quarterNine months
Passenger network2019ChangeChange
constant currency		2019ChangeChange
constant currency
Passengers (thousands)23,627+1.1% 66,278+2.7% 
Capacity (ASK m)79,443+1.6% 224,889+2.6% 
Traffic (RPK m) 71,317+1.8% 198,558+3.1% 
Load factor  89.8%+0.2 pt 88.3%+0.4 pt 
Total passenger revenues (€m)5,947+1.4%+0.3%16,057+3.2%+2.1%
Scheduled passenger revenues (€m)5,714+1.9%+0.6%15,388+3.3%+2.1%
Unit revenue per ASK (€ cts) 7.19+0.3%-0.9%6.84+0.7%-0.5%

Third quarter 2019 capacity increased moderately by 1.6%, mainly driven by the South American, North Atlantic and Asian networks, with respective growth of 4.2%, 4.1% and 3.0%.

  • The North American network posted negative unit revenue at -1.8% compared to last year, caused by an environment of lower booking-volumes and high competitive pressure. Yield development in point to sale USA is still positive and stronger than yield development in point of sale Europe.
  • The Asian network unit revenue was down by 2.8% in the third quarter 2019, notably impacted by weak China and Hong-Kong traffic.
  • The Caribbean & Indian Ocean network posted a continuing strong result with unit revenue at +5.3%, supported by peak period leisure demand.
  • The Africa & Middle East network saw an unit revenue improvement of 1.9%, underpinned by West African oil and gas countries solid performance combined with improvement thanks to network rationalizations in the Middle East.
  • The unit revenue pressure in the Latin American network remains ongoing for the time-being due to the current economic context in Argentina and Brazil.

The medium-haul hubs showed a resilient performance despite a strong capacity increase. French domestic network posted unit revenue up 4.0%, lifted by capacity reductions in the route network.

Cargo network: Unit revenue still impacted by a challenging airfreight market

 Third quarterNine months
Cargo business2019ChangeChange
constant currency		2019ChangeChange
constant currency
Tons (thousands)274-5.3% 823-1.3% 
Capacity (ATK m)3,816+0.8% 10,895+1.5% 
Traffic (RTK m) 2,091-5.1% 6,259-1.2% 
Load factor  54.8%-3.4 pt 57.4%-1.6 pt 
Total Cargo revenues (€m)514-9.3%-10.7%1,594-3.6%-5.5%
Scheduled cargo revenues (€m)437-11.0%-12.3%1,364-4.9%-6.8%
Unit revenue per ATK (€ cts ) 11.44-11.8%-13.1%12.52-6.3%-8.2%

Airfreight capacity is for another quarter significantly higher than the demand development, putting pressure on load factor and yield.
The demand is suffering from weakness in global trade, resulting in unit revenue down -13.1% at constant currency. The Group’s Cargo strategy is focused on maintaining and increasing load factors where possible and taking a pro-active approach to new revenue opportunities.

Transavia: High capacity growth and positive unit revenue

 Third quarterNine months
Transavia2019Change2019Change
Passengers (thousands)5,492+6.4%13,315+6.7%
Capacity (ASK m)10,874+7.9%26,227+9.1%
Traffic (RPK m) 10,117+8.1%24,239+9.2%
Load factor  93.0%+0.2 pt92.4%+0.1 pt
Total passenger revenues (€m)683+11.1%1,431+9.9%
Unit revenue per ASK (€ cts) 6.28+3.0%5.43+1.1%
Unit cost per ASK (€ cts)4.69+8.4%4.84+4.9%
Operating result (€m)173-5154-27

Strong capacity growth of 7.9% in the third quarter 2019. The third quarter operating margin stands at a level of 25.3%, with an absolute operating result of 173 million euros, 5 million euros down compared to last year. The unit revenue was up by 3.0% compared to last year, supported by a strong demand throughout the network and a good ancillary revenue performance. Unit cost in the third quarter at +8.4% compared to last year, +6.0% at constant fuel and currency, explained by temporary increased fleet- and non-performance expenditures.

Maintenance: Strong third-party revenue growth and operating result stable

 Third quarterNine months
Maintenance2019ChangeChange
constant currency		2019ChangeChange
constant currency
Total revenues (€m)1,163+9.6% 3,453+9.9% 
Third-party revenues (€m)543+11.0%+7.2%1,623+13.5%+7.4%
Operating result  (€m)75-2-61772813
Operating margin (%)6.4%-0.8 pt-1.0 pt5.1%+0.4 pt+0.1 pt

Maintenance revenues increased compared to last year with third-party revenues up by 11.0% and 7.2% at constant currency, a continuation of the growth trend underpinned by the inflow of new contracts.
The Maintenance order book stood at 11.5 billion dollars at 30 September 2019, stable compared to 31 December 2018.
The operating margin expressed as a percentage of total revenues stood at 6.4%, a decrease of 0.8 point impacted by airlines bankruptcies.

Air France-KLM Group: Operating result at 900 million euros with revenues up 2% and fuel expenses up 135 million euros

 Third quarterNine months
 2019ChangeChange
constant currency		2019ChangeChange
constant currency
Capacity (ASK m)90,323+2.3% 251,116+3.2% 
Traffic (RPK m)81,434+2.6% 222,798+3.7% 
Passenger unit revenue per ASK (€ cts) 7.08+0.5%-0.6%6.69+0.6%-0.5%
Group unit revenue per ASK (€ cts) 7.57-0.5%-1.6%7.24-0.1%-1.3%
Group unit cost per ASK (€ cts) at constant fuel6.57+1.4%+0.4%6.84+0.8%-0.7%
Revenues (€m)7,696+2.0%+0.8%20,732+3.8%+2.3%
EBITDA (€m)1,647-7.0%-8.2%3,218-6.5%-5.3%
Operating result (€m)900-15.5%-17.4%997-22.8%-20.5%
Operating margin (%)11.7%-2.4 pt-2.6 pt4.8%-1.7 pt-1.4 pt
Net income - Group part (€m)366-420 126-501 

In the third quarter 2019, the Air France-KLM Group posted an operating result of 900 million euros, down by 165 million euros compared to last year, impacted by trading environment and fuel bill increase.

Net income amounted for 366 million euros in the third quarter 2019, a decrease of 420 million euros compared to last year, including non-operating cost impact related to Airbus A380 phase-out of 100 million euros and effects on currency hedge portfolio related to a stronger US dollar and Japanese Yen.

The fuel bill including hedging amounted to 1,512 million euros for the third quarter 2019, up 135 million euros. This increase is mainly explained by a hedging loss of 50 million euros in this quarter compared to a hedging gain of 100 million euros last year, and a negative currency effect on the fuel bill of 48 million euros due to a stronger dollar.

Currencies had a positive 92 million euro impact on revenues and a negative 20 million euro effect on costs (ex-fuel) including currency hedging.

Third quarter 2019 unit cost at +0.4%, annual unit cost result on track for full year guidance
On a constant currency and fuel price basis, unit costs were up +0.4% in the third quarter 2019. The Group had a ramp up of Pilots hiring over the past 12 months, supporting the 2020 capacity growth plan.

Group net employee costs were up 5.0% in the quarter compared to last year, explained by additional hires in response to the capacity growth and the impact of wage agreement implementation for Air France and KLM staff. The average number of FTEs (Full-time equivalent) in the third quarter 2019 increased by 1,600 compared to last year, including an additional 600 Pilots and 850 Cabin Crew. However, productivity measured in ASK per FTE increased by 0.4% in the third quarter 2019.

Net debt down, leverage ratio stable, on track for full year guidance at/below 1.5x

 Third quarterNine months
In € million2019Change2019Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)1,514-802,979-49
Cash out related to Voluntary Departure Plans (€m)-22-10-33+100
Change in Working Capital Requirement (WCR) (€m)-715+10872+62
Net cash flow from operating activities (€m)777183,018113
Net investments * (€m)-765-211-2,154-112
Operating free cash flow (€m)12-1938641
Repayment of lease debt-247-28-748-12
Adjusted operating free cash flow **-235-221116-11

* 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 with deduction of the repayment of lease debt.

A lease debt reduction of 247 million euros and an adjusted operating free cash flow negative at -235 million euros
The Group generated a negative adjusted operating free cash flow of -235 million euros, a decrease of 221 million euros compared to last year, explained by higher capex in the third quarter 2019.

The year-to-date lease debt amounted for 4,399 million euros, down by 136 million euros compared to the end of 2018.

Leverage on track with full year guidance at/below 1.5x         

In € million30 Sep 201931 Dec 2018
Net debt 5,9116,164
EBITDA trailing 12 months3,9944,217
Net debt/EBITDA trailing 12 months1.5 x1.5 x

The Group reduced its net debt to 5,911 million euros at 30 September 2019 compared to 6,164 million euros at 31 December 2018, this 253 million euro reduction is driven by the repayment of lease debt.
The net debt/EBITDA ratio stood at 1.5x at 30 September 2019, a stable situation, explained by the reduction in net debt and EBITDA.

Air France and KLM both impacted by lower unit revenues and rise in fuel costs

 Third quarterNine months
 2019Change2019Change
Air France Group Operating result (€m)383-110270-58
Operating margin (%)8.2%-2.5 pt2.1%-0.6 pt
KLM Group Operating result (€m)512-61714-246
Operating margin (%)16.2%-2.2 pt8.5%-3.1 pt


Outlook

The global economic and geopolitical context remains uncertain and the Group operates in a highly competitive marketplace.    
Based on the current data for the Passenger network:

  • October 2019 load factor is expected to remain stable compared to last year.
  • Long-haul forward booking load factors from November to March are on average ahead compared to last year.
  • Network passenger unit revenue for the fourth quarter 2019 at constant currency expected to be slightly down compared to last year.

Capacity growth update:

  • The growth of Transavia France adjusted slightly downwards, Transavia is expected to grow at a sustainable pace of 6% to 8% for full year 2019.
  • Passenger network plan remains unchanged to moderately grow capacity by 2% to 3% for the full year 2019 compared to last year.

Full year guidance update:

  • The Group will pursue initiatives to reduce unit costs1, with a targeted 2019 reduction between -1% to 0% at constant currency and fuel price.
  • The 2019 fuel bill is expected to increase by 600 million euros compared to 2018 to 5.5 billion euros2, based on the forward curve of 25 October 2019.
  • The Group plans capital expenditure of 3.3 billion euros for 2019, slightly higher compared to the previous guidance including a change in accounting treatment for some assets, pre-delivery payment of Airbus A220 and acquire instead of leasing spare engines.
  • Air France-KLM is targeting a Net debt/EBITDA ratio at/below 1.5x.

*****

The results presentation is available at www.airfranceklm.com on 31 October 2019 from 7:15 am CET.

A conference call hosted by Mr. Gagey (CFO) will be held on 31 October 2019 at 08.30.

To connect to the conference call, please dial:

France: Local +33 (0)1 70 72 25 50
Netherlands: Local +31 (0) 20 703 8211
UK: Local +44 (0)330 336 9126
US: Local +1 720 543 0214

Confirmation code: 9498209

To listen to the audio-replay of the conference call, please dial:

  • France: Local +33 (0) 1 70 48 00 94
  • Netherlands: Local +31 (0) 20 721 8903
  • UK: Local +44 (0)207 660 0134
  • US: Local +1 719-457-0820

Investor Relations                                                                                          Press
Olivier Gall                                         Wouter van Beek                                                       
+33 1 49 89 52 59                                 +33 1 49 89 52 60                                 +33 1 41 56 56 00
olgall@airfranceklm.com                      Wouter-van.Beek@airfranceklm.com


Income Statement

 Third quarterNine months
In millions euros20192018Change20192018Change
Sales7,6967,544+2.0%20,73219,976+3.8%
Other revenues01-100.0%01-100.0%
Revenues7,6967,545+2.0%20,73219,977+3.8%
Aircraft fuel-1,512-1,377+9.8%-4,117-3,622+13.7%
Chartering costs-138-158-12.7%-407-434-6.2%
Landing fees and en route charges-530-513+3.3%-1,471-1,419+3.7%
Catering-222-211+5.2%-617-586+5.3%
Handling charges and other operating costs-531-501+6.0%-1,440-1,481-2.8%
Aircraft maintenance costs-625-586+6.7%-1,923-1,769+8.7%
Commercial and distribution costs-266-266+0.0%-783-776+0.9%
Other external expenses -420-399+5.3%-1,292-1,223+5.6%
Salaries and related costs-2,011-1,916+5.0%-6,031-5,728+5.3%
Taxes other than income taxes-26-40-35.0%-119-127-6.3%
Other income and expenses232193+20.2%686629+9.1%
EBITDA1,6471,771-7.0%3,2183,441-6.5%
Amortization, depreciation and provisions-747-707+5.7%-2,221-2,149+3.4%
Income from current operations9001,065-15.5%9971,292-22.8%
Sales of aircraft equipment13nm24-1nm
Other non-current income and expenses-10318nm-133-5+2,560.0%
Income from operating activities7981,085-26.5%8881,286-30.9%
Cost of financial debt-111-118-5.9%-332-354-6.2%
Income from cash and cash equivalent139+44.4%4029+37.9%
Net cost of financial debt-98-109-10.1%-292-325-10.2%
Other financial income and expenses-236-61+286.9%-346-135+156.3%
Income before tax464915-49.3%250826-69.7%
Income taxes-103-136-24.3%-136-203-33.0%
Net income of consolidated companies361780-53.7%114623-81.7%
Share of profits (losses) of associates67-14.3%146+133.3%
Net income for the period367787-53.4%128629-79.7%
Minority interest11+0.0%22+0.0%
Net income for the period – Group part366786-53.4%126627-79.9%


Consolidated Balance Sheet

Assets30 Sep 201931 Dec 2018
In million euros
Goodwill218217
Intangible assets1,2631,194
Flight equipment10,61910,167
Other property, plant and equipment1,5541,503
Right-of-use assets4,9215,243
Investments in equity associates310311
Pension assets132331
Other financial assets1,3901,487
Deferred tax assets501544
Other non-current assets354264
Total non-current assets21,26221,261
Other short-term financial assets499325
Inventories704633
Trade receivables2,3972,191
Other current assets1,3241,062
Cash and cash equivalents4,1093,585
Total current assets9,0337,796
Total assets30,29529,057


Liabilities and equity30 Sep 201931 Dec 2018
In million euros
Issued capital429429
Additional paid-in capital4,1394,139
Treasury shares-67-67
Perpetual403403
Reserves and retained earnings-3,144-3,051
Equity attributable to equity holders of Air France-KLM1,7601,853
Non-controlling interests1312
Total Equity1,7731,865
Pension provisions2,2552,098
Return obligation liability and other provisions3,2463,035
Financial debt6,0065,733
Lease debt3,4003,546
Deferred tax liabilities04
Other non-current liabilities423459
Total non-current liabilities15,33014,875
Return obligation liability and other provisions623492
Current portion of financial debt1,027826
Current portion of lease debt999989
Trade payables2,5942,460
Deferred revenue on ticket sales3,4553,153
Frequent flyer program850844
Other current liabilities3,6283,548
Bank overdrafts165
Total current liabilities13,19212,317
Total equity and liabilities30,29529,057


Statement of Consolidated Cash Flows from 1st January until 30th September  2019

In million euros30 Sep 201930 Sep 2018
Net income from continuing operations128629
Amortization, depreciation and operating provisions2,2212,149
Financial provisions13393
Loss (gain) on disposals of tangible and intangible assets-34-18
Loss (gain)on disposals of subsidiaries and associates01
Derivatives – non monetary result1525
Unrealized foreign exchange gains and losses, net207118
Other non-monetary items218-283
Share of (profits) losses of associates-14-6
Deferred taxes72187
Financial Capacity2,9462,895
(Increase) / decrease in inventories-83-102
(Increase) / decrease in trade receivables-147-471
Increase / (decrease) in trade payables42222
Change in other receivables and payables260361
Change in working capital requirements7210
Net cash flow from operating activities3,0182,905
Purchase of property, plant and equipment and intangible assets-2,238-2,138
Proceeds on disposal of property, plant and equipment and intangible assets8496
Proceeds on disposal of subsidiaries, of shares in non-controlled entities85
Acquisition of subsidiaries, of shares in non-controlled entities-1-9
Dividends received104
Decrease (increase) in net investments, more than 3 months-95
Net cash flow used in investing activities-2,146-2,037
Increase of equity due to new convertible bond540
Perpetual (including premium)0-211
Issuance of debt904532
Repayment on financial debt-560-1,182
Payments on lease debt-748-736
Decrease (increase ) in loans, net-17-52
Dividends and coupons on perpetual paid-1-12
Net cash flow from financing activities-368-1,661
Effect of exchange rate on cash and cash equivalents and bank overdrafts92
Change in cash and cash equivalents and bank overdrafts513-791
Cash and cash equivalents and bank overdrafts at beginning of period3,5804,667
Cash and cash equivalents and bank overdrafts at end of period4,0933,876
Change in treasury of discontinued operations00

Key Performance Indicators

EBITDA

 Third quarterNine months
In millions euros2019201820192018
Income/(loss) from current operations9001,0659971,292
Amortization, depreciation and provisions7477072,2212,149
EBITDA1,6471,7713,2183,441

Restated net result, group share         

 Third quarterNine months
In million euros2019201820192018
Net income/(loss), Group share 366786126627
Unrealized foreign exchange gains and losses, net155-157207-49
Change in fair value of financial assets and liabilities (derivatives) 11-14-9-74
Non-current income and expenses 102-211096
Tax impact on gross adjustments net result -7957-9135
Restated net income/(loss), group part555651342545
Coupons on perpetual-4-6-12-18
Restated net income/(loss), group share including coupons on perpetual (used to calculate earnings per share)551645330527
Restated net income/(loss) per share (in €)1.291.510.771.23

Return on capital employed (ROCE)1

In million euros30 Sep 201930 Sep 201830 Sep 201830 Sep 2017
Goodwill and intangible assets1,4811,3901,3901,329
Flight equipment10,61910,18710,1879,740
Other property, plant and equipment1,5541,4621,4621,377
Right of use assets4,9215,3615,3615,744
Investments in equity associates310299299303
Financial assets, marketable securities and financial deposits136123123105
Provisions, excluding pension, cargo litigation and restructuring-3,457-3,002-3,002-2,715
WCR, excluding market value of derivatives-6,287-5,865-5,865-5,805
Capital employed 9,2779,9559,95510,078
Average capital employed (A)9,61710,017
Income from current operations1,0371,533
- Dividends received-1-2
- Share of profits (losses) of associates510
- Normative income tax-309-458
Income from current operations after tax, trailing 12 months (B)7321,083
ROCE, trailing 12 months (B/A)7.6%10.8%

Net debt

 Balance sheet at
In million euros30 Sep 201931 Dec 2018
Financial debt6,6876,216
Lease debt4,3064,450
Currency hedge on financial debt-117
Accrued interest-60-67
Gross financial debt (A)10,92210,606
Cash and cash equivalents4,1093,585
Marketable securities7974
Cash securities269265
Deposits (bonds)568522
Bank overdrafts-16-5
Others21
Net cash (B)5,0114,442
Net debt (A) – (B)5,9116,164

Adjusted operating free cash flow

 Third quarterNine months
In million euros2019201820192018
Net cash flow from operating activities, continued operations7777593,0182,905
Investment in property, plant, equipment and intangible assets-774-604-2,238-2,138
Proceeds on disposal of property, plant, equipment and intangible assets 9508496
Operating free cash flow12205864863
Payments on lease debt-247-219-748-736
Adjusted operating free cash flow-235-14116127


Unit cost: net cost per ASK

 Third quarterNine months
 2019201820192018
Revenues (in €m)7,6967,54520,73219,977
Income/(loss) from current operations (in €m) -/--900-1,065-997-1,292
Total operating expense (in €m)6,7966,48019,73518,685
Passenger network business – other revenues (in €m)-233-255-669-669
Cargo network business – other revenues (in €m)-77-76-231-219
Third-party revenues in the maintenance business (in €m)-543-489-1,623-1,430
Transavia - other revenues (in €m)00-7-11
Third-party revenues of other businesses (in €m)-10-10-26-28
Net cost  (in €m)5,9335,65017,17916,328
Capacity produced, reported in ASK*90,32388,300251,116243,241
Net cost per ASK (in € cents per ASK)6.576.406.846.71
Gross change 2.7% 1.9%
Currency effect on net costs (in €m) 54 251
Change at constant currency 1.7% 0.4%
Fuel price effect (in €m) 74 194
Change on a constant currency and fuel price basis 0.4% -0.7%
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)6.576.546.846.89
Change at constant currency and fuel price basis +0.4% -0.7%

* 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

 Third quarterNine months
 2019Change2019Change
Revenue (in €m)4,650+1.5%12,632+4.8%
EBITDA (in €m)850-1011,663-32
Operating result (en m€)383-110270-58
Operating margin (%)8.2%-2.5 pt2.1%-0.6 pt
Operating cash flow before WCR and restructuring cash out (in €m)803-801,567+48
Operating cash flow (before WCR and restructuring) margin17.3%-2.0 pt12.4%-0.2 pt


KLM Group

 		Third quarterNine months
 2019Change2019Change
Revenue (in €m)3,160+1.6%8,444+1.8%
EBITDA (in €m)791-271,535-199
Operating result (en m€)512-61714-246
Operating margin (%)16.2%-2.2 pt8.5%-3.1 pt
Operating cash flow before WCR and restructuring cash out (in €m)687-171,378-113
Operating cash flow (before WCR and restructuring) margin21.7%-0.9 pt16.3%-1.7 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 September 2019

Aircraft typeAF
(incl. HOP)		KL
(incl. KLC & MP)		TransaviaOwnedFinance  leaseOperating leaseTotalIn operationChange /  31/12/18
B747-400 10 10  1010-1
B777-3004314 1223225757 
B777-2002515 241154040 
B787-9913 731222222
B787-10 1 1  111
A380-80010  1451010 
A350-9001   1 111
A340-3004  4  44-2
A330-300 5   555 
A330-200158 11 122323 
Total Long-Haul1076607032711731731
B737-900 5 2 355 
B737-800 30732910641031029
B737-700 16735152323-2
A32120  11 92020 
A32043  35354343 
A31933  20 133333-1
A31818  171 1818 
Total Medium-Haul114518085211392452446
ATR72-6006    664 
ATR72-500        -1
ATR42-5002    22 -4
Canadair Jet 100014  14  1414 
Canadair Jet 70011  11  1110 
Embraer 1901432 7142546463
Embraer 175 17 314 1717 
Embraer 17015  9151515 
Embraer 14517  143 1713-1
Total Regional79490583238128119-3
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2  2  22 
Total Cargo240600660
          
Total30217080219852485525424





1 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency



1 To align with industry practice, as of 2019 the EASK metric will no longer be used.
The new Unit Cost definition will be: Net cost per Available Seat Kilometer at constant fuel and currency. The impact of this change for the unit cost is -0.1pt for 2019



2 Based on the forward curves of 25 October 2019 average Brent price of USD 64, average jet fuel price of USD 683 per ton including into plane costs. Assuming exchange rate of EUR/USD of 1.12 in 2019



1 The ROCE definition has been updated within the framework of IFRS 16 implementation. The asset value linked to the aircraft lease contracts now corresponds to the net book value of the right-of-use asset of all the lease contracts. Moreover, the “operating result, adjusted for operating leases” no longer existing having been replaced by “income from current operations” which, thanks to IFRS 16 implementation, no longer includes the financial cost of lease contracts. Finally, the Group now uses a normative income tax rate, calculated according to the tax rates applied in France and in the Netherlands.



Attachment

  • Q3_2019 Press release EN