October 29, 2021

THIRD QUARTER 2021
Continuing recovery in capacity generates strong revenue growth and
positive operating results for the first time since the start of the Covid-19 crisis,
Adjusted operating free cash flow positive at 278 million euros
thanks to EBITDA contribution

Third quarter:

  • Revenue at 4,567 million euros, up 2,043 million compared to last year
  • Operating result at 132 million euros, up 1,178 million euros compared to last year
  • EBITDA improved to 796 million euros, an increase of 1,238 million euros compared to last year
  • Strong performance of Transavia with an operational result of 105 million euros
  • Net income at -192 million euros, up 1,473 million euros compared to last year
  • Net debt at 8.1 billion euros, down by 2.9 billion euros compared to end of 2020 thanks to the first set of capital strengthening measures

OUTLOOK

After the announcement in September of the reopening of the United States for European citizens, bookings came quickly for November and even more for Christmas holiday. The reopening of Canada in early September was another important milestone for the recovery of the Group, as well as the reopening of Singapore as from October.

In this context, the Group expects capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at index in the range of 70% to 75% in the Fourth quarter 2021 compared to 2019. EBITDA is expected to be positive in the Fourth quarter 2021 and slightly positive in Full Year 2021.

Due to the uncertainty regarding the reopening of the majority of the Asian countries, no capacity guidance will be provided for 2022.

Air France-KLM is considering the next steps of recapitalization measures to strengthen balance sheet. The reprofiling of the French Bank Loan “PGE”, the EMTN program (Euro Medium Term Note) which is now ready for use, and the finalization of a S&P solicited ESG rating tool, will be part of the liability management actions.
On the equity side, discussions are ongoing on KLM recapitalization measures on current shareholder loan and also on further capital strengthening measures for Air France-KLM. These could include instruments such as a Rights Issue and Quasi equity instruments.

Air France-KLM Group

 		Third quarterNine months
2021Change12021 Change
Passengers (thousands)16,940+92.6%28,787+2.3%
Passenger Unit revenue per ASK2 (€ cts) 5.48+36.9%4.34-12.5%
Operating result (€m)132+1,178-1,800+1,614
Net income – Group part (€m)-192+1,473-3,161+2,917
Adj. operating free cash flow (€m)278+1,498-856+2,691
Net debt at end of period3 (€m)  8,121-2,928

The Board of Directors of Air France-KLM, chaired by Mrs Anne-Marie Couderc, met on October 28, 2021 to approve the financial statements for the first nine months of 2021. Group CEO Mr. Benjamin Smith said:
“The Air France-KLM group had a good summer season thanks to the reopening of many countries. I would like to thank our employees who have enabled our customers to return to the skies in the best possible sanitary conditions. For the first time since the beginning of this Covid-19 crisis, the Q3 results show a positive operating result which encourages us to continue our efforts. The Covid-19 crisis is not yet over. Important continents such as Asia remain mainly closed and business travel is slowly recovering. This is why we must remain very agile and continue our transformation with the objective of improving both our economic and environmental performance. In this respect, the Air France-KLM Group has committed to setting greenhouse gas emission reduction targets in line with the Paris agreements and based on scientific data (through the science-based targets initiative). This new commitment comes in addition to our goal of zero net emissions by 2050”.

Business review  

Network: Recovery continued throughout the summer peak

Network

 		Third quarterNine months
2021ChangeChange
constant currency		2021ChangeChange
constant currency
Total revenues (€m)3,791+89.1%+89.8%8,011+11.0%+13.0%
Scheduled revenues (€m)3,595+93.7%+94.4%7,495+11.0%+13.3%
Operating result (€m)-13+976+968-1,728+1,113+1,095

Third quarter 2021 revenues increased by 89.8% at constant currency to 3,791 million euros. The operating result was close to break-even and amounted to -13 million euros, a 968 million euros increase at constant currency compared to last year.

Passenger network: All indicators showing positive results in the Third quarter

 Third quarterNine months
Passenger network2021ChangeChange
constant currency		2021ChangeChange
constant currency
Passengers (thousands)12,694+87.1% 23,015-2.8% 
Capacity (ASK m)52,532+63.7% 122,535+18.7% 
Traffic (RPK m) 34,019+147.4% 63,382-5.2% 
Load factor 64.8%+21.9 pt 51.7%-13.0 pt 
Total passenger revenues (€m)2,956+122.5%+123.2%5,443-1.2%+0.4%
Scheduled passenger revenues (€m)2,866+126.7%+127.3%5,223-0.9%+1.1%
Unit revenue per ASK (€ cts) 5.46+38.5%+38.9%4.26-16.5%-14.8%

Third quarter 2021, the capacity in Available Seat Kilometers in the Third quarter was 63.7% higher than last year, however at 66% of 2019 Third quarter levels. Thanks to the Group’s balanced network, less travel restrictions, for instance the reopening of Canada in September and the continuation of strong Cargo performance, the passenger network was in the upper limit of the Group’s guidance provided during the Second quarter 2021 results presentation.

On most routes, the Group observed a decrease in unit revenue versus 2019 mainly due to lower load factors, while yields are close to 2019 levels for the entire passenger activity.

  • North Atlantic peak summer has shown strong increase compared to June driven by the U.S point of sales. The Group also observes good performance on Mexican routes and in Canada after the lifting of border restrictions.
  • On Caribbean and Indian Ocean, the Group posted a good performance despite sanitary restrictions on the French Antilles affecting especially September results.
  • Africa performance was driven by West and Central African countries with yield on Africa above 2019 for Air France due to the limited industry capacity and benefiting from positive traffic mix.
  • Asia capacity and traffic were still weak for both airlines due to the closure of almost all Asian countries.
  • South American routes showed mixed results with a start of recovery driven by Andean and Central Americas
  • The group posted encouraging short and medium-haul results in the peak summer driven by over-performing local leisure flows with same yield as 2019. Capacity redeployment to leisure areas and seasonal route openings enabled to leverage all leisure traffic opportunities. September confirms recovery of business motive traffic with stabilization of yield not far from 2019 levels.

During the Third quarter, Air France added one Airbus 350-900 to the fleet and received its first Airbus A220-300, KLM phased out two B737-700 and HOP decreased its aircraft in operation with two Canadair Jet 1000 and one Canadair Jet 700.

Cargo: High yield compensating the lower load factor in the Third quarter due to increase in capacity

 Third quarterNine months
Cargo business2021ChangeChange
constant currency		2021ChangeChange
constant currency
Tons (thousands)247+12.5% 789+28.9% 
Capacity (ATK m)3,052+20.3% 8,363+14.4% 
Traffic (RTK m) 1,889+8.9% 6,055+27.6% 
Load factor 61.9%-6.5 pt 72.4%+7.5 pt 
Total Cargo revenues (€m)835+23.4%+24.1%2,568+50.3%+53.9%
Scheduled cargo revenues (€m)729+23.1%+23.7%2,272+53.3%+56.8%
Unit revenue per ATK (€ cts ) 23.89+2.3%+2.9%27.17+34.0%+37.0%

Compared to the third quarter in 2020, capacity increased by 20.3% in Available Ton Kilometers and traffic increased by 8.9%. Additional belly capacity to leisure destinations could not be filled completely resulting in a reduction in load factor by 6.5 points. Thanks to an increase in yield, which compensated the reduction in load factor, the unit revenue per ATK at constant currency improved by 2.9%.
Cargo capacity this quarter is still 20% below the capacity in the Third quarter of 2019 while the demand remains high resulting in high revenues.

Strong demand is expected on Q4 as global trade is booming, sea freight faces bottleneck, and the belly capacities are still constrained overall.

The Sustainable Aviation Fuel (SAF) Cargo program welcomed 25 partners already, showing the sustainable commitment of Air France-KLM Cargo and its partners.

Transavia: Reaching close to 80% load factor in the Third quarter with strong capacity development

 Third quarterNine months
Transavia2021Change2021Change
Passengers (thousands)4,246+110.8%5,772+29.6%
Capacity (ASK m)9,393+56.3%13,645+22.1%
Traffic (RPK m) 7,359+90.2%9,881+16.2%
Load factor 78.3%+14.0 pt72.4%-3.7 pt
Total passenger revenues (€m)522+99.3%685+31.5%
Unit revenue per ASK (€ cts) 5.59+27.7%5.04+11.0%
Unit cost per ASK (€ cts)4.47-3.0%5.87-8.2%
Operating result (€m)105+119-113+94

The third quarter of 2021 showed a strong recovery in demand for leisure traffic in Europe, both from the Netherlands as well as France. With activity levels back to around 85% of the regular production, Transavia realized an Operating Profit of €105mln, with a healthy COI margin of 20,2%, moving towards Q3 2019 level of 26%.

Compared to last year, the capacity increased by 56.3% while traffic increased by 90.2% and the number of passengers more than doubled at an increase of 110.8%.

Transavia was able to continuously adjust and redesign the network to accommodate high leisure demand from both the Netherlands and France, with an increase of capacity to Greece, Spain and Portugal.

In the first nine months of 2021, the number of aircraft of Transavia France increased by ten as part of the growth strategy for Transavia France and will reach 61 aircraft in Summer 2022.

Maintenance business: Operating result positive for the Third quarter 2021

 Third quarterNine months
Maintenance2021ChangeChange
constant currency		2021ChangeChange
constant currency
Total revenues (€m)703+14.2% 2,005-11.1% 
Third-party revenues (€m)2470.0%+3.0%761-21.0%-12.5%
Operating result (€m)29747619386405
Operating margin (%)4.1%+11.5 pt+11.9 pt1.0%+17.2 pt+18.9 pt

The Third quarter operating result stood at 29 million euros, an increase of 76 million euros at constant currency versus the Third quarter 2020.

The operating result increase in the Third quarter is mainly explained by less underactivity, costs control, savings and operational improvement.  

Total revenues increased by 14.2% in the Third quarter while third party revenues remained stable and internal revenues increased by 24%. This increase in internal revenues is aligned with the activity increase of the Air France-KLM airlines compared to the third quarter 2020. Both internal and third party engines revenues are impacted by green time usage. Nevertheless, some recovery signs are there and E&M business should increase its external activity over the coming months.

Air France-KLM Group: Positive Operating result in the Third quarter for the first time since the start of the Covid-19 crisis

 Third quarterNine months
 2021ChangeChange
constant currency		2021ChangeChange
constant currency
Capacity (ASK m)61,925+62.5% 136,179+19.0% 
Traffic (RPK m)41,378+134.8% 73,262-2.8% 
Passenger unit revenue per ASK (€ cts) 5.48+36.6%+36.9%4.34-14.0%-12.5%
Group unit revenue per ASK (€ cts) 6.65+19.6%+20.0%6.01-5.3%-3.5%
Group unit cost per ASK (€ cts) at constant fuel6.44-22.5%-24.4%7.33-21.4%-19.7%
Revenues (€m)4,567+80.9%+82.0%9,477+8.6%+11.5%
EBITDA (€m)7961,2381,232-781,2041,204
Operating result (€m) 1321,1781,172-1,8001,6141,613
Operating margin (%)2.9%+44.3 pt+44.3 pt-19.0%+20.1 pt+21.2 pt
Net income - Group part (€m)-192+1,473 -3,161+2,917 

In the Third quarter 2021, the Air France-KLM Group posted a positive operating result of 132 million euros, up by 1,178 million euros compared to last year driven by an increase of capacity leading to a reduction in unit cost. In parallel increase of load factor generated an increase of the unit revenue.

Net income amounted to -192 million euros in the Third quarter 2021, an increase of 1,473 million euros compared to last year. Last year Third quarter was heavily impacted by the recording of exceptional accounting items due to Covid-19 (mainly due to restructuring costs provision for Air France staff, HOP staff and Air France-KLM international commercial staff, but as well due to fleet impairment and fuel over hedge).

Third quarter 2021 unit cost decreased by 24%, thanks to an increase of capacity and FTE reductions

On a constant currency and fuel price basis, unit costs were down 24.4% in the third quarter 2021 compared to the same quarter last year.

All cost items increased in the Third quarter 2021 compared to last year due to an increase in capacity of 62.5%.
Group net employee cost were up 8.7% due to less government support driven by higher activity, and partly compensated by FTE reductions.

Third quarter: Adjusted Operating Free cash flow positive driven by Cash Flow from Operations

 Third quarterNine months
In € million2021Change2021Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)671+1,396-491+1,572
Cash out related to Voluntary Departure Plans (€m)-93-87-218-203
Change in Working Capital Requirement (WCR) (€m)242+1181,361+695
Net cash flow from operating activities (€m)8201,4276522,064
Net investments* (€m)-321+41-854+619
Operating free cash flow (€m)4991,468-2022,683
Repayment of lease debt-221+30-654+8
Adjusted operating free cash flow**2781,498-8562,691

* 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 the Third quarter 2021 of 278 million euros, an increase of 1,498 million euros compared to last year, mainly driven by a positive EBITDA of 796 million euros.

In € million30 Sep 202131 Dec 2020
Net debt 8,12111,049
EBITDA trailing 12 months-485-1,689
Net debt/EBITDA trailing 12 monthsnana

Q3: Both airlines performing significantly better than last year

 Third quarterNine months
 2021Change2021Change
Air France Group Operating result (€m)-45+762-1,451+950
Operating margin (%)-1.6%+52.5 pt-25.0%+22.3 pt
KLM Group Operating result (€m)168+402-354+649
Operating margin (%)8.9%+29.4 pt-8.8%+16.4 pt

OUTLOOK

After the announcement in September of the reopening of the United States for European citizens, bookings came quickly for November and even more for Christmas holiday. The reopening of Canada early September was another important milestone for the recovery of the Group, as well as the reopening of Singapore as from October.

In this context, the Group expects capacity in Available Seat Kilometers for Air France-KLM Network passenger activity at an index in the range of 70% to 75% in the Fourth quarter 2021 compared to 2019.

Due to the uncertainty of the reopening of the majority of the Asian countries no capacity guidance will be provided for 2022.

As of September 30 2021, the Group has 10.4 billion euros of liquidity and credit lines at disposal. This level can be considered sufficient, given the continuation of recovery throughout the summer. Cash requirements for 2021, will include:

  • EBITDA is expected to be positive in the Fourth quarter 2021 and slightly positive in Full Year 2021
  • Net Capex spending expected at 1.5 billion euros in 2021
  • Restructuring cash out at 300 million euros in 2021

Air France-KLM is considering the next steps of recapitalization measures to strengthen balance sheet. The reprofiling of the French Bank Loan “PGE”, the EMTN program (Euro Medium Term Note) which is now ready for use, and the finalization of a S&P solicited ESG rating tool, will be part of the liability management actions.
On the equity side, discussions are ongoing on KLM recapitalization measures on current shareholder loan and also on further capital strengthening measures for Air France-KLM. These could include instruments such as a Rights Issue and Quasi equity instruments.

Air France-KLM receives a proactive and voluntary ESG Evaluation by Standard and Poor’s

Sustainability is a key element of the Group’s recovery strategy and an integral part of its structural transformation plan. Air France-KLM wants to lead the way towards responsible and sustainable aviation.

To this end, the Group has set itself ambitious targets to reduce its environmental footprint, deepen its social and societal contribution and set an example in terms of corporate governance.

To objectivize its ESG profile and enhance its strategy and practice, Air France-KLM proactively sought an independent ESG rating from Standard and Poor's.

This makes Air France-KLM the first airline Group to be evaluated by a solicited ESG rating.

S&P Global Ratings has assigned Air France-KLM an ESG Evaluation of 64/100.

With this rating, Air France-KLM compares well with the airline industry in terms of the management of its significant exposure to environmental challenges. S&P noted that the Group is adequately prepared to manage ESG related risks facing airlines over the near-to-medium term.

******

The results presentation is available at www.airfranceklm.com on October 29, 2021 from 7:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on October 29, 2021 at 08.30 CET.
            
To connect to the conference call, please dial:

France: Local +33 (0)1 76 77 25 07
Netherlands: Local +31 (0)20 703 8259
UK: Local +44 (0)330 336 9434
US: Local +1 323-794-2597

Confirmation code: 2229449

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

Income Statement

 Third quarterNine months
€m20212020Change20212020Change
Sales4,5672,524+80.9%9,4778,725+8.6%
Other revenues00nm00nm
Revenues4,5672,524+80.9%9,4778,725+8.6%
Aircraft fuel-828-489+69.3%-1,811-1,886-4.0%
Chartering costs-85-68+25.0%-232-181+28.2%
Landing fees and route charges-374-266+40.6%-835-743+12.4%
Catering-124-58+113.8%-250-236+5.9%
Handling charges and other operating costs-307-204+50.5%-710-646+9.9%
Aircraft maintenance costs-389-331+17.5%-1,181-1,243-5.0%
Commercial and distribution costs-124-61+103.3%-255-291-12.4%
Other external expenses -292-263+11.0%-839-937-10.5%
Salaries and related costs-1,406-1,293+8.7%-3,809-4,224-9.8%
Taxes other than income taxes-30-28+7.1%-100-108-7.4%
Other income and expenses18895+97.9%467488-4.3%
EBITDA796-442nm-78-1,282-93.9%
Amortization, depreciation and provisions-664-604+9.9%-1,722-2,132-19.2%
Income from current operations132-1,046nm-1,800-3,414-47.3%
Sales of aircraft equipment-68nm-2031nm
Other non-current income and expenses-54-597-91.0%-906-1,452-38%
Income from operating activities72-1,635nm-2,726-4,835-43.6%
Cost of financial debt-144-136+5.9%-483-350+38.0%
Income from cash and cash equivalent-15nm218-88.9%
Net cost of financial debt-145-131+10.7%-481-332+44.9%
Other financial income and expenses-114111nm-199-621-68.0%
Income before tax-187-1,655-88.7%-3,406-5,788-41.2%
Income taxes-712nm255-242nm
Net income of consolidated companies-194-1,643-88.2%-3,151-6,030-47.7%
Share of profits (losses) of associates3-22nm-13-52-75.0%
Net income for the period-191-1,665-88.5%-3,164-6,082-48.0%
Minority interest-10nm-3-4-25%
Net income for the period – Group part-192-1,665-88.5%-3,161-6,078-48.0%

Consolidated Balance Sheet

Assets30 Sep 2021

 		31 Dec 2020

 
€m
Goodwill221215
Intangible assets1,2341,230
Flight equipment10,47811,031
Other property, plant and equipment1,4181,548
Right-of-use assets5,0614,678
Investments in equity associates172230
Derivatives assets long term14892
Pension assets0211
Other financial assets851795
Deferred tax assets264282
Other non-current assets14
Total non-current assets19,84820,316
Other short-term financial assets495607
Derivatives assets short term484160
Inventories580543
Trade receivables1,6211,248
Other current assets970914
Cash and cash equivalents6,9926,423
Total current assets11,1429,895
Total assets30,99030,211


Liabilities and equity30 Sep 2021

 		31 Dec 2020

 
In million euros
Issued capital643429
Additional paid-in capital4,9494,139
Treasury shares-25-25
Perpetual3,0970
Reserves and retained earnings-12,483-9,970
Equity attributable to equity holders of Air France-KLM-3,819-5,427
Non-controlling interests89
Total Equity-3,811-5,418
Pension provisions2,1632,147
Other provisions4,2233,670
Long-term debt11,98414,171
Lease financial debt2,7592,425
Derivatives liabilities long term35122
Deferred tax liabilities522
Other non-current liabilities2,7271,294
Total non-current liabilities23,89623,851
Provisions7931,337
Current portion of long-term debt8321,318
Current portion of lease financial debt801839
Derivatives liabilities short term36363
Trade payables1,8751,435
Deferred revenue on ticket sales2,5482,394
Frequent flyer programs899916
Other current liabilities3,1193,175
Bank overdrafts21
Total current liabilities10,90511,778
Total equity and liabilities30,99030,211

Statement of Consolidated Cash Flows from 1st January until 30 September 2021

€m30 Sep 202130 Sep 2020
Net income from continuing operations-3,164-6,082
Amortization, depreciation and operating provisions1,7222,132
Financial provisions89135
Loss (gain) on disposals of tangible and intangible assets18-43
Loss (gain) on disposals of subsidiaries and associates-251
Derivatives – non monetary result-3370
Unrealized foreign exchange gains and losses, net172-83
Impairment37670
Other non-monetary items723761
Share of (profits) losses of associates1352
Deferred taxes-261309
Financial Capacity-709-2,078
(Increase) / decrease in inventories-47134
(Increase) / decrease in trade receivables-365823
Increase / (decrease) in trade payables415-792
Increase / (decrease) in advanced ticket sales142-435
Change in other receivables and payables1,216936
Change in working capital requirements1,361666
Net cash flow from operating activities652-1,412
Purchase of property, plant and equipment and intangible assets-1,543-1,654
Proceeds on disposal of property, plant and equipment and intangible assets689181
Proceeds on disposal of subsidiaries, of shares in non-controlled entities71357
Acquisition of subsidiaries, of shares in non-controlled entities-2-1
Dividends received20
Decrease (increase) in net investments, more than 3 months37-9
Net cash flow used in investing activities-746-1,126
Capital increase1,0260
Perpetual (including premium)00
Issuance of debt1,5467,598
Repayment on financial debt-1,323-2,202
Payments on lease debt-654-662
Decrease (increase ) in loans, net5848
Dividends and coupons on perpetual paid00
Net cash flow from financing activities6534,782
Effect of exchange rate on cash and cash equivalents and bank overdrafts9-39
Change in cash and cash equivalents and bank overdrafts5682,205
Cash and cash equivalents and bank overdrafts at beginning of period6,4223,711
Cash and cash equivalents and bank overdrafts at end of period6,9905,916
Change in treasury of discontinued operations00

Return on capital employed (ROCE)

In million euros30 Sep 202130 Jun 202131 Mar 202131 Dec 202030 Sep 202030 Jun 202031
Mar 2020		31    Dec 2019
Goodwill and intangible assets1,4561,4641,4791,4451,4701,5001,5641,522
Flight equipment10,47810,64510,80011,03111,00910,91911,46511,334
Other property, plant and equipment1,4181,4531,4761,5481,5351,5511,5791,580
Right of use assets5,0615,0334,7954,6784,7894,9385,1195,173
Investments in equity associates172166223230224267299307
Financial assets excluding marketable securities and financial deposits147147146146135133142140
Provisions, excluding pension, cargo litigation and restructuring-4,180-4,033-4,083-3,922-4,002-4,132-4,191-4,060
WCR, excluding market value of derivatives-7,995-7,745-6,410-6,505-6,894-6,779-6,650-6,310
Capital employed 6,5577,1308,4268,6518,2668,3979,3279,686
Average capital employed (A)7,6918,919
Adjusted results from current operations-2,934-3,320
- Dividends received0-1
- Share of profits (losses) of associates-19-44
- Normative income tax8441,030
Adjusted result from current operations after tax (B)-2,109-2,335
ROCE, trailing 12 months (B/A)-27.4%-26.2%

Net debt

 Balance sheet at
€m30 Sep 202131 Dec 2020
Financial debt12,71915,388
Repo on triple A bonds0-84
Lease debt3,4743,184
Currency hedge on financial debt-227
Accrued interest-112-107
Gross financial debt (A)16,07918,408
Cash and cash equivalents6,9926,423
Marketable securities968193
Cash securities0309
Bonds AAA0518
Bank overdrafts-2-1
Others01
Repo on triple A bonds0-84
Net cash (B)7,9587,359
Net debt (A) – (B)8,12111,049

Adjusted operating free cash flow

 Third quarterNine months
€m2021202020212020
Net cash flow from operating activities, continued operations820-607652-1,412
Investment in property, plant, equipment and intangible assets-444-370-1,543-1,654
Proceeds on disposal of property, plant, equipment and intangible assets 1238689181
Operating free cash flow499-969-202-2,885
Payments on lease debt-221-251-654-662
Adjusted operating free cash flow278-1,220-856-3,547

Operating cash burn

 

 

 		Third quarterNine months
 2021202020212020
EBITDA796-442-78-1,282
Provisions (CO2 and other)127-16-26
Correction of spare parts inventory1242
Addition to pension provisions3078164232
Reversal to pension provisions (cash-out)-17-47-100-142
Payment linked with shares000-2
Sales of tangible and intangible assets (excluding aeronautical)0-13140
Income from operation activities - cash impact822-4025-1,177
Restructuring costs-93-137-218-152
Other non-current income and expenses-30-66-1
Cost of financial debt-138-118-440-318
Financial income-40-112
Realized foreign exchanges gain/loss2294928
Termination of trading hedges - cash-3-177-11-499
Current income tax-477-667
Other financial charges & expenses - cash01-8-25
Other elements-1-4-3-2
     
Financial capacity578-731-709-2,078

Unit cost: net cost per ASK

 Third quarterNine months
 2021202020212020
Revenues (in €m)4,5672,5249,4778,725
Income/(loss) from current operations (in €m) -/--1321,0461,8003,414
Total operating expense (in €m)4,4353,57011,27712,139
Passenger network business – other revenues (in €m)-90-64-221-241
Cargo network business – other revenues (in €m)-106-84-296-226
Third-party revenues in the maintenance business (in €m)-247-247-761-963
Transavia - other revenues (in €m)313-13
Third-party revenues of other businesses (in €m)-8-10-20-21
Net cost (in €m)3,9883,1669,98310,674
Capacity produced, reported in ASK*61,92538,109136,179114,446
Net cost per ASK (in € cents per ASK)6.448.317.339.33
Gross change -22.5% -21.4%
Currency effect on net costs (in €m) -13 -137
Change at constant currency -22.2% -20.4%
Fuel price effect (in €m) 92 -84
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)6.448.527.339.13
Change at constant currency and fuel price basis -24.4% -19.7%

* 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
 2021Change2021Change
Revenue (in €m)2,808+88.2%5,795+14.4%
EBITDA (in €m)379+841-413+682
Operating result (in m€)-45+762-1,451+950
Operating margin (%)-1.6%+52.5 pt-25.0%+22.3 pt
Operating cash flow before WCR and restructuring cash out (in €m)227+835-752-752
Operating cash flow (before WCR and restructuring) margin8.1%+48.8 pt-13.0%-13.0 pt


KLM Group

 

 		Third quarterNine months
 2021Change2021Change
Revenue (in €m)1,890+65.3%4,027+1.1%
EBITDA (in €m)408+383330+505
Operating result (in m€)168+402-354+649
Operating margin (%)8.9%+29.4 pt-8.8%+16.4 pt
Operating cash flow before WCR and restructuring cash out (in €m)309+29433+33
Operating cash flow (before WCR and restructuring) margin16.4%+15.0 pt0.8%+0.8 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 2021

Aircraft typeAF
(incl. HOP)		KL
(incl. KLC & MP)		TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange / 31/12/20
B747-400         
B777-3004316 18172459592
B777-2002115 26 103636-4
B787-91013 56122323 
B787-10 6 33 65 
A380-8008  4138  
A350-90011  25411115
A340-300         
A330-300 5   555 
A330-200157 11 112221 
Total Long-Haul1086206932691701603
B737-900 5 5  55 
B737-800 31853197611611610
B737-700 1144381515-5
A32119  11 81919-1
A32044  44364444 
A31930  12 183030-3
A31818  8 101818 
A220-3001  1  1  
Total Medium-Haul112478976161562482471
ATR72-600         
ATR72-500         
ATR42-500         
Canadair Jet 100014  14  1411-3
Canadair Jet 7005  5  54-5
Embraer 195 E2 4   4444
Embraer 1901732 1110284949 
Embraer 175 17 314 1717 
Embraer 17015  10 51515 
Embraer 1459  9  9  
Total Regional60530522437113100-4
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2    222 
Total Cargo240402660
          
Total28216689201722645375130

  

THIRD QUARTER 2021 TRAFFIC

Passenger network activity*

  Q3  Year to date
Total Passenger network*20212020Variation 20212020Variation
Passengers carried (‘000s)12,6946,78387.1% 23,01523,677(2.8%)
Revenue pax-kilometers (m RPK)34,01913,752147.4% 63,38266,861(5.2%)
Available seat-kilometers (m ASK)52,53232,10063.7% 122,535103,26818.7%
Load factor (%)64.8%42.8%21.9 51.7%64.7%(13.0)
        
Long-haul       
Passengers carried (‘000s)3,5531,220191.3% 6,8917,077(2.6%)
Revenue pax-kilometers (m RPK)25,1258,685189.3% 48,28952,764(8.5%)
Available seat-kilometers (m ASK)40,51923,92469.4% 100,47082,77721.4%
Load factor (%)62.0%36.3%25.7 48.1%63.7%(15.7)
        
North America       
Passengers carried (‘000s)1,154286303.6% 1,8521,875(1.3%)
Revenue pax-kilometers (m RPK)8,2902,058302.8% 13,43413,3920.3%
Available seat-kilometers (m ASK)13,0987,55373.4% 29,17023,37424.8%
Load factor (%)63.3%27.2%36.0 46.1%57.3%(11.2)
        
Latin America       
Passengers carried (‘000s)36592298.0% 731964(24.2%)
Revenue pax-kilometers (m RPK)3,521909287.4% 7,0359,144(23.1%)
Available seat-kilometers (m ASK)6,1643,12297.5% 16,62113,46923.4%
Load factor (%)57.1%29.1%28.0 42.3%67.9%(25.6)
        
Asia / Pacific       
Passengers carried (‘000s)27217357.3% 6111,361(55.1%)
Revenue pax-kilometers (m RPK)2,3341,52653.0% 5,21211,803(55.8%)
Available seat-kilometers (m ASK)6,0696,0370.5% 18,03320,702(12.9%)
Load factor (%)38.5%25.3%13.2 28.9%57.0%(28.1)
        
Africa / Middle East       
Passengers carried (‘000s)1,005327206.9% 2,2221,56342.2%
Revenue pax-kilometers (m RPK)5,3161,660220.0% 11,6918,81232.7%
Available seat-kilometers (m ASK)7,6723,171142.0% 20,14412,31363.6%
Load factor (%)69.3%52.4%16.9 58.0%71.6%(13.5)
        
Caribbean / Indian Ocean       
Passengers carried (‘000s)757341121.6% 1,4751,31312.3%
Revenue pax-kilometers (m RPK)5,6632,532123.6% 10,9189,61313.6%
Available seat-kilometers (m ASK)7,5154,04285.9 % 16,50212,91827.7%
Load factor (%)75.4%62.7%12.7 66.2%74.4%(8.3)
        
Short and Medium-haul       
Passengers carried (‘000s)9,1415,56364.3% 16,12416,600(2.9%)
Revenue pax-kilometers (m RPK)8,8955,06775.5% 15,09314,0987.1%
Available seat-kilometers (m ASK)12,0138,17646.9% 22,06420,4917.7%
Load factor (%)74.0%62.0%12.1 68.4%68.8%(0.4)

* Air France and KLM

Transavia activity        

  Q3  Year to date
Transavia20212020Variation 20212020Variation
Passengers carried (‘000s)4,2462,014110.8% 5,7724,45329.6%
Revenue pax-kilometers (m RPK)7,3593,86990.2% 9,8818,50516.2%
Available seat-kilometers (m ASK)9,3936,00956.3% 13,64511,17822.1%
Load factor (%)78.3%64.4%14.0 72.4%76.1%(3.7)

Total group passenger activity**

  Q3  Year to date
Total group**20212020Variation 20212020Variation
Passengers carried (‘000s)16,9408,79792.6% 28,78728,1302.3%
Revenue pax-kilometers (m RPK)41,37817,620134.8% 73,26275,368(2.8%)
Available seat-kilometers (m ASK)61,92538,11362.5% 136,179114,49019.0%
Load factor (%)66.8%46.2%20.6 53.8%65.8%(12.0)

** Air France, KLM and Transavia

Cargo activity

  Q3  Year to date
Total Group20212020Variation 20212020Variation
Revenue tonne-km (m RTK)1,8891,7358.9% 6,0554,74727.6%
Available tonne-km (m ATK)3,0522,53720.3% 8,3637,30914.4%
Load factor (%)61.9%68.4%(6.5) 72.4%64.9%7.5


Air France activity

  Q3  Year to date
Total Passenger network activity20212020Variation 20212020Variation
Passengers carried (‘000s)7,5204,48867.6% 14,17214,641(3.2%)
Revenue pax-kilometers (m RPK)20,3048,538137.8% 38,02739,394(3.5%)
Available seat-kilometers (m ASK)29,18916,58976.0% 63,24156,90911.1%
Load factor (%)69.6%51.5%18.1 60.1%69.2%(9.1)


Long-haul       
Passengers carried (‘000s)2,261784188.5% 4,4024,2483.6%
Revenue pax-kilometers (m RPK)15,2565,223192.1% 29,26630,649(4.5%)
Available seat-kilometers (m ASK)22,39411,46395.3% 50,64644,37114.1%
Load factor (%)68.1%45.6%22.6 57.8%69.1%(11.3)


Short and Medium-haul       
Passengers carried (‘000s)5,2603,70442.0% 9,77010,393(6.0%)
Revenue pax-kilometers (m RPK)5,0483,31552.3% 8,7618,7440.2%
Available seat-kilometers (m ASK)6,7955,12532.6% 12,59512,5380.5%
Load factor (%)74.3%64.7%9.6 69.6%69.7%(0.2)


  Q3  Year to date
Cargo activity20212020Variation 20212020Variation
Revenue tonne-km (m RTK)83260836.8% 2,6481,80246.9%
Available tonne-km (m ATK)1,5931,13939.8% 4,1943,39023.7%
Load factor (%)52.2%53.4%(1.2) 63.1%53.2%9.9

KLM activity

  Q3  Year to date
Total Passenger network activity20212020Variation 20212020Variation
Passengers carried (‘000s)5,1742,295125.4% 8,8439,036(2.1%)
Revenue pax-kilometers (m RPK)13,7155,214163.1% 25,35427,468(7.7%)
Available seat-kilometers (m ASK)23,34315,51150.5% 59,29446,35927.9%
Load factor (%)58.8%33.6%25.1 42.8%59.3%(16.5)


Long-haul       
Passengers carried (‘000s)1,293436196.4% 2,4892,829(12.0%)
Revenue pax-kilometers (m RPK)9,8693,462185.1% 19,02322,114(14.0%)
Available seat-kilometers (m ASK)18,12512,46145.5% 49,82538,40629.7%
Load factor (%)54.5%27.8%26.7 38.2%57.6%(19.4)


Short and Medium-haul       
Passengers carried (‘000s)3,8811,859108.8% 6,3546,2072.4%
Revenue pax-kilometers (m RPK)3,8461,752119.6% 6,3325,35318.3%
Available seat-kilometers (m ASK)5,2183,05071.1% 9,4697,95319.1%
Load factor (%)73.7%57.4%16.3 66.9%67.3%(0.4)


  Q3  Year to date
Cargo activity20212020Variation 20212020Variation
Revenue tonne-km (m RTK)1,0581,127(6.1%) 3,4072,94215.8%
Available tonne-km (m ATK)1,4591,3984.4% 4,1693,9196.4%
Load factor (%)72.5%80.6%(8.1) 81.7%75.1%6.6


1 The third quarter 2020 was highly impacted by worldwide travel restrictions
2 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency
3 See appendix for the calculation of the net debt

Attachment

  • Q3_2021 Press release EN

© OMX, source GlobeNewswire - EU Press Releases