February 17, 2022

FOURTH QUARTER 2021
Operating result positive at 178 million euros, above fourth quarter 2019
Adjusted operating free cash flow positive at 225 million euros
thanks to EBITDA contribution

Fourth quarter:

  • Operating result at 178 million euros, higher than pre-Covid (Fourth quarter 2019) despite lower revenues but compensated by cost control and restructuring programs. Both Network and Maintenance activities showing a positive operating result
  • Net income at -127 million euros, showing 874 million euros improvement compared to the same quarter last year supported by revenue at 4,838 million euros which is 2,475 million euros higher than last year Fourth quarter
  • Air France-KLM ordered 100 Airbus A320neo family aircraft - with purchase rights for an additional 60 aircraft - for KLM and Transavia, and signed a letter of intention for the purchase of 4 Airbus A350F Full Freighter aircraft for Air France with purchase rights for 4 additional aircraft, to increase cargo capacity at Air France.

Full year:
In 2021, Air France-KLM continued to be flexible and agile in order to provide the right offer to its customers. The tremendous transformation and restructuring efforts performed during the Covid crisis paved the way to a sustained position as a European avaiation leader. The Group was able to close 2021 with a positive EBITDA at 745 million euros, up 2,440 million euros compared to last year with a first semester impacted by lockdowns in France and the Netherlands, and worldwide travel restrictions in place. The recovery was visible since June which continued in the second semester and thanks to less tight travel restrictions the Group was able to capture the recovery in a profitable way. Net debt ended at 8.2 billion euros, a decrease of 2.8 billion euros compared to end of 2020 thanks to the first set of capital strengthening measures.

OUTLOOK

After a good start of the Fourth quarter and the reopening of the United States early November, the rise of the Omicron variant hampered in December the continuous increase in load factors for the Medium haul and Domestic traffic. Due to high infection rates in France and the Netherlands, some flights had to be canceled in January.

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 73% to 78% in the First quarter of 2022 compared to the First quarter of 2019.
For FY 2022 no guidance will be provided yet due to uncertainty concerning the sanitary situation and reopening of Japan and China.

As of December 31 2021, the Group has a sufficient 10.2 billion euros of liquidity and credit lines at disposal.

  • For the First quarter 2022, the Group expects to have an EBITDA around break-even in the current international context,
  • Full year 2022 Net Capex spending estimated at circa 2.5 billion euros, which is 80% fleet & fleet related and 20% related to IT/ground.

Mid 2021, Air France-KLM initiated the first step of its recapitalization plan to strengthen its balance sheet which had been impacted by Covid-19, raising a total of circa 4 billion euros, including the completion of a 1 billion euro capital increase and the conversion of the 3 billion euros French State loan into 3 perpetual bonds in April 2021. In line with market practice for perpetual bonds, Air France-KLM intends to pay discretionary coupons in alignment with point 77 bis of the European Commission’s Covid-19 Temporary Framework.

In addition, Air France-KLM implemented several refinancing measures to improve its senior debt profile, notably with 800 million euros of dual tranche senior bonds issued late in July 2021. Part of the proceeds were allocated to repay 500 million euros of the 4 billion euros French State guaranteed loan (“PGE”). The maturity profile of the PGE was also spread over three installments (800m/1.3bn/1.3bn euros) and extended to May 2025 for the last installment.

Finally, Air France-KLM also set up an EMTN (Euro Medium Term Notes) programme, and obtained a solicited ESG rating from Standard & Poor’s to pursue its forthcoming refinancing strategy and reaffirm its strategic ESG ambitions in the mid to long term.

Air France-KLM now plans to start a new step of equity strengthening measures, which could consist in:

  • a capital increase with pre-emptive rights for shareholders;
  • an issuance of quasi equity instruments such as straight and convertible perpetual bonds in order to accelerate the reimbursement of the State supports, since the proceeds of such instruments would be fully allocated to this purpose in alignment with point 77 bis of the European Commission’s Covid-19 Temporary Framework cited above;
  • additional equity strengthening measures, including an potential ongoing project to refinance assets for an amount up to 500 million euros, through private perpetual bonds classified as equity. The proceeds would be used to partially redeem State aids.

Air France-KLM intends to remain flexible on the transaction structures, as well as on the sequencing and the sizing of each instrument depending on market conditions.

Existing reference shareholders are supportive of these equity strengthening measures; some of them will consider participating, amongst which the French State and the Dutch State on a pro rata and in-kind basis, through partial offset of their respective outstanding support.

Air France-KLM is committed to repaying the States aids as soon as practicable to be relieved from the set of operational and strategic constraints of the European Commission’s Temporary Framework.

Some of these measures are subject to the approval of the European Commission as well as legal and regulatory approvals.

In total, these equity and quasi-equity issuances could represent up to 4.0 billion euros.

This new step in the recapitalization plan measures intends to further restore the equity position, and aims to reach a targeted Net debt / EBITDA ratio between 2.0x and 2.5x by 2023 (excluding the Dutch shareholder loan which is currently accounted as debt), depending notably on the sizing of the contemplated measures.

Air France-KLM Group

 		Fourth quarterFull Year
2021Change12021 Change
Passengers (thousands)15,881+167.3%44,669+31.1%
Passenger Unit revenue per ASK2 (€ cts) 5.77+87.0%4.78+6.1%
Operating result (€m)178+1,314-1,626+2,928
Net income – Group part (€m)-127+874-3,292+3,808
Adj. operating free cash flow (€m)225+2,340-631+5,030
Net debt at end of period3 (€m)  8,216-2,833

The Board of Directors of Air France-KLM, chaired by Mrs Anne-Marie Couderc, met on February 16, 2022 to approve the financial statements for the full year of 2021. Group CEO Mr. Benjamin Smith said:
“The fourth quarter 2021 marked a turning point for Air France-KLM. For the first time since the beginning of the pandemic, the Group posted better than pre-covid results, with a positive operating result. While the end of the quarter saw the return of travel restrictions along with the Omicron variant, the overall performance reflects both the pent-up demand for travel and the outcome of our transformation efforts. The crisis is not over yet, but this makes us optimistic for the future, as we accelerate said efforts to improve our performance from both an economical and environmental standpoint. The investments in fleet renewal across all of the Group’s airlines – including the joint order for 100 Airbus A320neo family aircraft with acquisition rights for an additional 60 aircraft and the LOI for 4 Airbus A350F Full Freighter aircraft - embody this goal and emphasize our dedication to preparing for the future today. I would like to thank our customers for their trust, and our employees for their unyielding commitment to the Group throughout another challenging yet rewarding year.”

Business review  

Network: Positive Operating result in the fourth quarter

Network

 		Fourth quarterFull Year
2021ChangeChange
constant currency		2021ChangeChange
constant currency
Total revenues (€m)4,242+113.6%+112.0%12,253+33.1%+34.8%
Scheduled revenues (€m)4,025+121.4%+119.3%11,520+34.4%+36.3%
Operating result (€m)146+1,027+1,032-1,582+2,140+2,126

Fourth quarter 2021 revenues increased by 112.0% at constant currency to 4,242 million euros. The operating result was positive and amounted to 146 million euros, a 1,032 million euros increase at constant currency compared to last year.

Passenger network: Strong long haul performance, lockdown impact visible in December for Medium haul and Domestic

 Fourth quarterFull Year
Passenger network2021ChangeChange
constant currency		2021ChangeChange
constant currency
Passengers (thousands)12,840+146.3% 35,855+24.1% 
Capacity (ASK m)53,485+53.3% 176,019+27.4% 
Traffic (RPK m) 37,710+162.8% 101,092+24.5% 
Load factor 70.5%+29.4 pt 57.4%-1.3 pt 
Total passenger revenues (€m)3,223+186.2%+184.7%8,666+30.5%+32.3%
Scheduled passenger revenues (€m)3,131+197.0%+194.3%8,353+32.1%+34.0%
Unit revenue per ASK (€ cts) 5.85+93.8%+92.0%4.75+3.7%+5.2%

Fourth quarter 2021, capacity in Available Seat Kilometers (ASK) was 53% higher than last year and at 72% of 2019 Fourth quarter level. Thanks to the Group’s balanced network and the reopening of the Canada and the United States, the passenger network was in the middle of the Group’s guidance provided during the Third quarter 2021 results presentation.

The unit revenue per ASK on all routes, except for Central and South America, was below 2019 levels in the Fourth quarter, driven by lower load factors. Yields on total long haul level was above Fourth quarter 2019 levels, intra Europe yields were close to the Fourth quarter 2019 level while Domestic France yields ended below Fourth quarter of 2019 level, resulting in a better yield compared to the Fourth quarter for the entire passenger network activity.

  • North Atlantic has shown a strong increase in capacity and resilient traffic after the opening of the United States early November.
  • On Caribbean and Indian Ocean, the Group continued to be strong with a capacity index above Fourth quarter 2019 level, despite protest in the French Antilles in November and December.
  • Air France posted a strong Africa performance driven by East, West and Central Africa and KLM saw good results on the Eastern Africa routes. Arrival of Omicron variant in the Southern Africa zone impacted traffic at the end of November.
  • Asia capacity and traffic were still low for both airlines, however a bit compensated by a positive yield.
  • Central and South America showed healthy demand resulting in the same load factor as the Fourth quarter in 2019 and higher yields.
  • Good dynamics for Short and Medium haul in October but slowdowns in November and December with a traffic not following capacity ramp-up due to border closures and additional restrictions.

During the Fourth quarter, Air France added one Airbus 350-900 and five Airbus A220-300 to its fleet while Air France phased out one Airbus A320, three Airbus A318, four Canadair Jet 700 and four Embraer 145. KLM phased out one Boeing B737-700 and KLM phased in three Embraer 195 E2. The Group will continue to introduce new generation aircraft to its fleet in order to improve its economic and environmental performance.

In 2021, Air France-KLM passenger activity was able to operate around 60% of 2019 capacity, with the first half of 2021 more impacted by travel restrictions. Short and medium-haul, African and Caribbean & Indian Ocean routes were the best performers.

Cargo: Strong fourth quarter yields resulting in higher unit revenue

 Fourth quarterFull Year
Cargo business2021ChangeChange
constant currency		2021ChangeChange
constant currency
Tons (thousands)264-1.3% 1,053+19.7% 
Capacity (ATK m)3,106+10.5% 11,469+13.3% 
Traffic (RTK m) 2,002-3.8% 8,058+18.0% 
Load factor 64.5%-9.6 pt 70.3%+2.8 pt 
Total Cargo revenues (€m)1,020+18.6%+17.4%3,588+39.7%+41.4%
Scheduled cargo revenues (€m)894+17.1%+15.9%3,167+41.0%+42.6%
Unit revenue per ATK (€ cts ) 28.80+6.0%+5.0%27.61+24.4%+25.8%

Compared to the fourth quarter 2020, capacity increased by 10.5% in Available Ton Kilometers, mainly due to the increase in belly capacity, while traffic decreased by 3.8% resulting in a decrease of load factor by 9.6 points. Thanks to an increase in yield, which compensated the reduction in load factor, the unit revenue per ATK at constant currency improved by 5.0%.
Cargo capacity in the Fourth quarter is still 16% below the capacity in the Fourth quarter of 2019 while the demand remains high, resulting in total revenues that are 82% higher than in the Fourth quarter of 2019. This increase in revenues is mainly driven by a higher yield and 5 points higher load factor contributed as well.

In 2021, the cargo activity continued to post very strong performances with a 25.8% unit revenue increase at constant currency versus last year. Yields were continuously on a steep upward trend.

Strong demand is expected in Q1 2022 as global trade is booming, sea freight faces bottleneck, and the belly capacities are still constrained overall.

Transavia: Capacity close to pre-crisis level with a load factor of 80%

 Fourth quarterFull Year
Transavia2021Change2021Change
Passengers (thousands)3,042+316.8%8,814+70.1%
Capacity (ASK m)6,452+202.4%20,097+51.0%
Traffic (RPK m) 5,131+287.9%15,012+52.7%
Load factor 79.5%+17.5 pt74.7%+0.9 pt
Total passenger revenues (€m)326+283.6%1,011+66.9%
Unit revenue per ASK (€ cts) 5.06+37.7%5.05+14.6%
Unit cost per ASK (€ cts)5.64-29.6%5.80-12.9%
Operating result (€m)-37+56-150+149

The Fourth quarter of 2021 had started well with encouraging load factors but December was impacted by the closure of the border of Morocco and imposed travel restrictions in several countries due to the rise of the Omicron variant. Despite these factors, capacity in the fourth quarter was close to the level of the Fourth quarter of 2019 and unit revenue even above Fourth quarter 2019 mainly driven by a strong yield improvement.

Compared to last year, the capacity in the Fourth quarter increased by 202.4% while traffic increased by 287.9% and the number of passengers increased even more, by 316.8%. The Operating result was negative at 37 million euros, although improved by 56 million euros compared to the Fourth quarter of 2020.

In the first half year of 2021, activity levels were quite low compared to 2020. The strong recovery of leisure traffic started in the second half of the year resulting in an increase of 51% in ASK’s and an average load factor of 74.7% for the Full year 2021. Combined with a yield increase of 14% compared to 2020, the unit revenue per ASK rose by 14.6%. The Operating loss stood at 150 million euros for the full year 2021, which is an improvement of 149 million euros compared to 2020.

Maintenance business: Operating result positive for the Fourth quarter and Full Year 2021

 Fourth quarterFull Year
Maintenance2021ChangeChange
constant currency		2021ChangeChange
constant currency
Total revenues (€m)796+32.1% 2,801-2.0% 
Third-party revenues (€m)263-8.0%-9.4%1,023-18.0%-11.8%
Operating result (€m)6924624688631651
Operating margin (%)8.7%+38.0 pt+37.7 pt3.1%+22.1 pt+23.5 pt

The Fourth quarter operating result stood at 69 million euros, an increase of 246 million euros at constant currency versus the Fourth quarter 2020. Although the Fourth quarter 2020 result was heavily impacted by one off bookings related to the Covid-19 crisis, the improvement of the operating results is explained as well by less underactivity, cost control, savings and operational improvement.

Total revenues increased by 32.1% in the Fourth quarter while third party revenues decreased by 8.0% due to the use of green time by external customers in order to avoid shop visits. The increase in internal revenues is consistant with the activity increase of the Air France-KLM airlines compared to the Fourth quarter 2020.

Full year 2021 total revenues are close to Full year 2020 levels while the operating result increased by 651 million euros at a constant currency, resulting in an operating margin of 3.1%. The results of full year 2020 were heavily impacted by one-off bookings related to the Covid-19 crisis when the year 2021 has shown a better result driven by cost control, savings and operational improvement.

Air France-KLM Group: Operating result above Q4 2019

 Fourth quarterFull Year
 2021Change*Change*
constant currency		2021Change*Change*
constant currency
Capacity (ASK m)59,937+61.8% 196,116+29.5% 
Traffic (RPK m)42,841+173.3% 116,104+27.5% 
Passenger unit revenue per ASK (€ cts) 5.77+88.6%+87.0%4.78+4.7%+6.1%
Group unit revenue per ASK (€ cts) 7.26+41.8%+40.5%6.39+5.7%+7.1%
Group unit cost per ASK (€ cts) at constant fuel6.96-14.9%-19.1%7.22-20.2%-20.0%
Revenues (€m)4,838+104.7%+103.1%14,315+29.1%+31.6%
EBITDA (€m)8271,2361,2417452,4402,445
Operating result (€m) 1781,3141,319-1,6262,9282,932
Operating margin (%)3.7%+51.8 pt+51.6 pt-11.4%+29.7 pt+30.5 pt
Net income - Group part (€m)-127+874 -3,292+3,808 

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

In the Fourth quarter 2021, the Air France-KLM Group posted a positive operating result of 178 million euros, up by 1,319 million euros at a constant currency compared to last year, and was driven by an increase of capacity and unit cost reduction. In parallel, the increase of load factor generated an increase of the unit revenue.
Net income amounted to -127 million euros in the Fourth quarter 2021, an increase of 874 million euros compared to last year.

Full year 2021 showed a positive EBITDA of 745 million euros, coming from a positive second half of the year while the first half of the year was still impacted by severe travel restrictions due to the Covid-19 crisis.

Group Unit Cost down versus Q4 2019 despite 26% less capacity
Unit cost were down compared to the Fourth quarter 2019 despite the group capacity was 26% below the same quarter in 2019.

On a constant currency and fuel price basis, unit costs were down 19.1% in the Fourth quarter 2021 compared to the same quarter last year.
The reduction in salary cost compared to the Fourth quarter 2019 was mainly driven by a reduction in Full time employee (FTE), and supported by lower average salary cost and by government support on wages as well.

Fourth quarter: Adjusted Operating Free cash flow positive, for the third quarter in a row

 Fourth quarterFull Year
In € million2021Change2021Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)711+1,619220+3,196
Cash out related to Voluntary Departure Plans (€m)-78-72-296-281
Change in Working Capital Requirement (WCR) (€m)249+7501,610+1,445
Net cash flow from operating activities (€m)8822,2981,5344,360
Net investments* (€m)-449-28-1,303+592
Operating free cash flow (€m)433+2,2702314,952
Repayment of lease debt-208+70-862+78
Adjusted operating free cash flow**225+2,340-631+5,030

* 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 an adjusted operating free cash flow in the Fourth quarter 2021 of 225 million euros, an increase of 2,340 million euros compared to last year, mainly driven by a positive EBITDA of 827 million euros.

In € million31 Dec 202131 Dec 2020
Net debt 8,21611,049
EBITDA trailing 12 months745-1,695
Net debt/EBITDA trailing 12 months11.0 xna

Q4: Positive operating result for both airlines

 Fourth quarterFull Year
 2021Change2021Change
Air France Group Operating result (€m)52+1,043-1,403+1,992
Operating margin (%)1.8%+75.3 pt-16.0%+36.9 pt
KLM Group Operating result (€m)127+278-227+927
Operating margin (%)6.2%+19.6 pt-3.7%+18.8 pt

Guidance: Air France-KLM Group medium term operating margin objective unchanged

The Group continues its swift and quick transformation initiatives and confirms its medium-term financial ambition with the long-term focus of achieving increased competitiveness. To do this, the Group continues to optimize fleet, workforce, network, costs and reinforce its sustainability efforts.

The Group expects capacity in Available Seat Kilometers back to the 2019 levels in 2024.

Air France (excluding Transavia France subsidiary) decreased the number of FTE by 7,800 at the end of 2021 compared to December 2019. The voluntary departure plan continues at Air France (excluding Transavia France), and an additional 700 FTE will leave the company in 2022. KLM finalized the FTE reduction by the end of 2021 resulting in 5.500 less FTE.

Operating cost has been reduced in 2021, with 800 million euros structural benefits for KLM and 1.0 billion structural benefits for Air France by the end of 2021. Air France estimates to reach by the end of 2022 1.4 billion euros structural benefits versus 2019.

The reduction in FTE, amongst other key transformation initiatives, will drive the unit cost down 4% to 6% at constant fuel price when capacity are back to 2019 level.

The Group’s medium-term financial ambition is maintained with an Operating Margin objective reconfirmed at 7% to 8% in 2024. The Adjusted Operating Free Cash Flow excluding exceptionals is expected positive in 2023. Exceptionals include the payment of the cargo claim and the deferrals of social charges accumulated during the Covid 19 period.

The Net debt/EBITDA target ratio of circa 3x in 2023 will be lowered to between 2x and 2.5x depending on the second step of recapitalization sizing.

******

The results presentation is available at www.airfranceklm.com on February 17, 2022 from 8:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on February 17, 2022 at 08.30 am CET.
            
To connect to the conference call, please dial:

France: Local +33 (0)1 70 730 3 39
Netherlands: Local +31 (0)20 703 8218
UK: Local +44 (0)330 336 9601
US: Local +1 720-452-7989

Confirmation code: 9020512

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

 Fourth quarterFull Year
€m20212020Change20212020*Change
Revenues from ordinary activities4,8382,363+104.7%14,31511,088+29.1%
Aircraft fuel-937-506+85.2%-2,748-2,392+14.9%
Chartering costs-93-72+29.2%-325-253+28.5%
Landing fees and route charges-350-226+54.9%-1,185-969+22.3%
Catering-132-59+123.7%-382-294+29.9%
Handling charges and other operating costs-317-188+68.6%-1,027-833+23.3%
Aircraft maintenance costs-439-375+17.1%-1,620-1,618+0.1%
Commercial and distribution costs-130-55+136.4%-385-346+11.3%
Other external expenses -315-342-7.9%-1,154-1,275-9.5%
Salaries and related costs-1,529-1,078+41.8%-5,343-5,306+0.7%
Taxes other than income taxes-16-29-44.8%-116-137-15.3%
Other income and expenses247158+56.3%715640+11.7%
EBITDA827-409nm745-1,695nm
Amortization, depreciation and provisions-649-727-10.7%-2,371-2,859-17.1%
Income from current operations178-1,136nm-1,626-4,554-64.3%
Sales of aircraft equipment16-83.3%-1937nm
Other non-current income and expenses19-38nm-887-1,513-41%
Income from operating activities198-1,168nm-2,532-6,030-58.0%
Cost of financial debt-247-146+69.2%-730-496+47.2%
Income from cash and cash equivalent01-100.0%219-89.5%
Net cost of financial debt-247-145+70.3%-728-477+52.6%
Other financial income and expenses-91171nm-289-451-35.9%
Income before tax-140-1,142-87.7%-3,549-6,958-49.0%
Income taxes26146-82.2%282-89nm
Net income of consolidated companies-114-996-88.6%-3,267-7,047-53.6%
Share of profits (losses) of associates-13-6+116.7%-27-58-53.4%
Net income for the period-127-1,002-87.3%-3,294-7,105-53.6%
Minority interest0-1-100.0%-2-5-60.0%
Net income for the period – Group part-127-1,001-87.3%-3,292-7,100-53.6%

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

Consolidated Balance Sheet

Assets31 Dec 2021

 		31 Dec 2020*

 
€m
Goodwill222215
Intangible assets1,2351,230
Flight equipment10,46611,031
Other property, plant and equipment1,4021,548
Right-of-use assets5,1484,678
Investments in equity associates109230
Pension assets0211
Other non-current financial assets951795
Non-current derivative financial assets14392
Deferred tax assets278252
Other non-current assets04
Total non-current assets19,95420,286
Assets held for sale740
Other current financial assets484607
Current derivative financial assets469160
Inventories567543
Trade receivables1,5111,248
Other current assets966914
Cash and cash equivalents6,6586,423
Total current assets10,7299,895
Total assets30,68330,181


Liabilities and equity31 Dec 2021

 		31 Dec 2020*

 
In million euros
Issued capital643429
Additional paid-in capital4,9494,139
Treasury shares-25-25
Perpetual3,1510
Reserves and retained earnings-12,542-9,894
Equity attributable to equity holders of Air France-KLM-3,824-5,351
Non-controlling interests89
Total Equity-3,816-5,342
Pension provisions1,9392,041
Non-current return obligation liability and other provisions4,0553,670
Non-current financial liabilities11,27414,171
Non-current lease debt2,9242,425
Non-current derivative financial liabilities25122
Deferred tax liabilities122
Other non-current liabilities2,5551,294
Total non-current liabilities22,77323,745
Provisions8851,337
Current financial liabilities1,2151,318
Current lease debt825839
Current derivative financial liabilities46363
Trade payables1,8501,435
Deferred revenue on ticket sales2,6442,394
Frequent flyer programs888916
Other current liabilities3,3693,175
Bank overdrafts41
Total current liabilities11,72611,778
Total equity and liabilities30,68330,181

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

Statement of Consolidated Cash Flows from 1st January until 31 December 2021

€m31 Dec 202131 Dec 2020*
Net income -3,294-7,105
Amortization, depreciation and operating provisions2,3712,859
Financial provisions115183
Loss (gain) on disposals of tangible and intangible assets18-50
Loss (gain) on disposals of subsidiaries and associates-261
Derivatives – non monetary result-39-27
Unrealized foreign exchange gains and losses, net257-290
Share of (profits) losses of associates2758
Deferred taxes-284159
Impairment40680
Other non-monetary items739541
Financial Capacity-76-2,991
(Increase) / decrease in inventories-41138
(Increase) / decrease in trade receivables-239760
Increase / (decrease) in trade payables395-898
Increase / (decrease) in advanced ticket sales227-837
Change in other receivables and payables1,2681,002
Change in working capital requirements1,610165
Net cash flow from operating activities1,534-2,826
Acquisition of subsidiaries, of shares in non-controlled entities-4-1
Purchase of property, plant and equipment and intangible assets-2,202-2,099
Proceeds on disposal of subsidiaries, of shares in non-controlled entities75357
Proceeds on disposal of property, plant and equipment and intangible assets899204
Dividends received20
Decrease (increase) in net investments, more than 3 months-9-44
Net cash flow used in investing activities-1,239-1,583
Increase of equity1,0240
Issuance of debt1,72411,437
Repayment on debt-1,993-3,388
Payments on lease debt-862-940
New loans-188-282
Repayment on loans219321
Dividends-10
Net cash flow from financing activities-777,147
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold)14-27
Change in cash and cash equivalents and bank overdrafts2322,711
Cash and cash equivalents and bank overdrafts at beginning of period6,4223,711
Cash and cash equivalents and bank overdrafts at end of period6,6546,422

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

In million euros31 Dec 202130 Sep 202130 Jun 202131 Mar 202131 Dec 202030 Sep 202030 Jun 202031
Mar 2020
Goodwill and intangible assets1,4571,4561,4641,4791,4451,4701,5001,564
Flight equipment10,46610,47810,64510,80011,03111,00910,91911,465
Other property, plant and equipment1,4021,4181,4531,4761,5481,5351,5511,579
Right of use assets5,1485,0615,0334,7954,6784,7894,9385,119
Investments in equity associates109172166223230224267299
Financial assets excluding marketable securities and financial deposits157147147146146135133142
Provisions, excluding pension, cargo litigation and restructuring-4,173-4,180-4,033-4,083-3,922-4,002-4,132-4,191
WCR, excluding market value of derivatives-8,262-7,995-7,745-6,410-6,505-6,894-6,779-6,650
Capital employed 6,3046,5577,1308,4268,6518,2668,3979,327
Average capital employed (A)7,1048,660
Adjusted results from current operations-1,626-4,555
- Dividends received00
- Share of profits (losses) of associates-27-58
- Normative income tax4621,396
Adjusted result from current operations after tax (B)-1,191-3,217
ROCE, trailing 12 months (B/A)-16.8%-37.1%

Net debt

 Balance sheet at
€m31 Dec 202131 Dec 2020
Financial debt12,39015,388
Repo on triple A bonds0-84
Lease debt3,6643,184
Currency hedge on financial debt-1427
Accrued interest-128-107
Gross financial debt (A)15,91218,408
Cash and cash equivalents6,6586,423
Marketable securities1,042193
Cash securities0309
Bonds AAA0518
Bank overdrafts-4-1
Others01
Repo on triple A bonds0-84
Net cash (B)7,6967,359
Net debt (A) – (B)8,21611,049

Adjusted operating free cash flow

 Fourth quarterFull Year
€m2021202020212020
Net cash flow from operating activities, continued operations882-1,4161,534-2,826
Investment in property, plant, equipment and intangible assets-659-444-2,202-2,099
Proceeds on disposal of property, plant, equipment and intangible assets 21023899204
Operating free cash flow433-1,837231-4,721
Payments on lease debt-208-278-862-940
Adjusted operating free cash flow225-2,115-631-5,661

Operating cash burn

 

 

 		Fourth quarterFull Year
 20212020*20212020*
EBITDA827-409745-1,695
Provisions (CO2 and other)104-6-22
Correction of spare parts inventory1254
Addition to pension provisions3876206312
Reversal to pension provisions (cash-out)-40-104-140-246
Payment linked with shares0200
Sales of tangible and intangible assets (excluding aeronautical)-113041
Income from operation activities - cash impact835-428840-1,605
Restructuring costs-78-253-296-405
Other non-current income and expenses-80-74-1
Cost of financial debt-137-128-577-446
Financial income-3-4-14-2
Realized foreign exchanges gain/loss14-21637
Termination of trading hedges - cash3-93-8-589
Settlement of forwards derivatives - cash-42-33
Current income tax53-170
Other financial charges & expenses - cash03-8-22
Other elements5420
     
Financial capacity633-913-76-2,991

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

Unit cost: net cost per ASK

 Fourth quarterFull Year
 20212020*20212020*
Revenues (in €m)4,8382,36314,31511,088
Income/(loss) from current operations (in €m) -/--1781,1361,6264,554
Total operating expense (in €m)4,6603,49915,94115,642
Passenger network business – other revenues (in €m)-92-72-313-314
Cargo network business – other revenues (in €m)-125-96-421-322
Third-party revenues in the maintenance business (in €m)-263-286-1,023-1,248
Transavia - other revenues (in €m)0-73-20
Third-party revenues of other businesses (in €m)-7-6-27-28
Net cost (in €m)4,1743,03314,16113,711
Capacity produced, reported in ASK159,93737,034196,116151,480
Net cost per ASK (in € cents per ASK)6.968.187.229.05
Gross change -14.9% -20.2%
Currency effect on net costs (in €m) -22 116
Change at constant currency -15.6% -19.5%
Fuel price effect (in €m) -134 -80
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)6.968.617.229.03
Change at constant currency and fuel price basis -19.1% -20.0%

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

Group results
Air France Group

 Fourth quarterFull Year
 2021Change2021Change
Revenue (in €m)2,950+118.7%8,744+36.3%
EBITDA (in €m)463+97846+1,655
Operating result (in m€)52+1,043-1,403+1,992
Operating margin (%)1.8%+75.3 pt-16.0%+36.9 pt
Operating cash flow before WCR and restructuring cash out (in €m)392+1,066-318-318
Operating cash flow (before WCR and restructuring) margin13.3%+63.3 pt-3.6%-3.6 pt


KLM Group

 

 		Fourth quarterFull Year
 2021Change2021Change
Revenue (in €m)2,038+79.5%6,065+18.5%
EBITDA (in €m)365+264695+769
Operating result (in m€)127+278-227+927
Operating margin (%)6.2%+19.6 pt-3.7%+18.8 pt
Operating cash flow before WCR and restructuring cash out (in €m)329+311525+525
Operating cash flow (before WCR and restructuring) margin16.1%+14.6 pt8.7%+8.7 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 31 December 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  
A350-90012  35412126
A340-300         
A330-300 5   554-1
A330-200156 11 102121 
Total Long-Haul1096107032681701603
B737-900 5 5  55 
B737-800 318931107912011610
B737-700 1046171414-6
A32119  11 81919-1
A32043  44354342-2
A31930  12 183028-5
A31815  7 81512-6
A220-3006  4 2666
Total Medium-Haul11346938015157252242-4
ATR72-600         
ATR72-500         
ATR42-500         
Canadair Jet 100014  14  1411-3
Canadair Jet 7001  1  1 -9
Embraer 195 E2 7   7777
Embraer 1901831 165284947-2
Embraer 175 17 314 1717 
Embraer 17015  10 51515 
Embraer 1455  5  5  
Total Regional5355049194010897-7
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2    222 
Total Cargo240402660
          
Total2771669320366267536505-8

  

FOURTH QUARTER 2021 TRAFFIC

Passenger network activity*

  Q4  Year to date
Total Passenger network*20212020Variation 20212020Variation
Passengers carried (‘000s)12,8405,213146.3% 35,85528,89024.1%
Revenue pax-kilometers (m RPK)37,71014,351162.8% 101,09281,21224.5%
Available seat-kilometers (m ASK)53,48534,90053.3% 176,019138,16827.4%
Load factor (%)70.5%41.1%29.4 57.4%58.8%(1.3)
        
Long-haul       
Passengers carried (‘000s)4,1471,593160.4% 11,0388,67027.3%
Revenue pax-kilometers (m RPK)30,06511,240167.5% 78,35364,00322.4%
Available seat-kilometers (m ASK)42,89929,77844.0% 143,359112,55427.4%
Load factor (%)70.1%37.7%32.4 54.7%56.9%(2.2)
        
North America       
Passengers carried (‘000s)1,248307306.0% 3,1002,18342.0%
Revenue pax-kilometers (m RPK)8,9712,260296.9% 22,40515,65243.1%
Available seat-kilometers (m ASK)13,4618,00168.2% 42,63031,37435.8%
Load factor (%)66.6%28.2%38.4 52.6%49.9%2.7
        
Latin America       
Passengers carried (‘000s)562187200.9% 1,2931,15112.3%
Revenue pax-kilometers (m RPK)5,4201,799201.3% 12,45510,94313.8%
Available seat-kilometers (m ASK)6,5904,90334.4% 23,21218,37226.3%
Load factor (%)82.2%36.7%45.6 53.7%59.6%(5.9)
        
Asia / Pacific       
Passengers carried (‘000s)33417393.1% 9451,534(38.4%)
Revenue pax-kilometers (m RPK)2,8551,49191.5% 8,06713,294(39.3%)
Available seat-kilometers (m ASK)6,2066,326(1.9%) 24,23827,028(10.3%)
Load factor (%)46.0%23.6%22.4 33.3%49.2%(15.9)
        
Africa / Middle East       
Passengers carried (‘000s)1,117534109.3% 3,3392,09759.3%
Revenue pax-kilometers (m RPK)6,0802,815116.0% 17,77111,62652.8%
Available seat-kilometers (m ASK)8,3535,72845.8% 28,49718,04257.9%
Load factor (%)72.8%49.1%23.7 62.4%64.4%(2.1)
        
Caribbean / Indian Ocean       
Passengers carried (‘000s)887392126.1% 2,3621,70538.5%
Revenue pax-kilometers (m RPK)6,7382,875134.4% 17,65612,48841.4%
Available seat-kilometers (m ASK)8,2804,82071.8% 24,78217,73839.7%
Load factor (%)81.4%59.7%21.7 71.2%70.4%0.8
        
Short and Medium-haul       
Passengers carried (‘000s)8,6933,620140.1% 24,81720,22022.7%
Revenue pax-kilometers (m RPK)7,6463,111145.8% 22,73917,20932.1%
Available seat-kilometers (m ASK)10,5965,122106.9% 32,66025,61327.5%
Load factor (%)72.2%60.7%11.4 69.6%67.2%2.4

* Air France and KLM

Transavia activity        

  Q4  Year to date
Transavia20212020Variation 20212020Variation
Passengers carried (‘000s)3,042730316.8% 8,8145,18270.1%
Revenue pax-kilometers (m RPK)5,1311,323287.9% 15,0129,82852.7%
Available seat-kilometers (m ASK)6,4522,134202.4% 20,09713,31251.0%
Load factor (%)79.5%62.0%17.5 74.7%73.8%0.9

Total group passenger activity**

  Q4  Year to date
Total group**20212020Variation 20212020Variation
Passengers carried (‘000s)15,8815,942167.3% 44,66934,07231.1%
Revenue pax-kilometers (m RPK)42,84115,674173.3% 116,10491,04127.5%
Available seat-kilometers (m ASK)59,93737,03861.8% 196,116151,52829.5%
Load factor (%)71.5%42.3%29.2 59.2%60.1%(0.9)

** Air France, KLM and Transavia

Cargo activity

  Q4  Year to date
Total Group20212020Variation 20212020Variation
Revenue tonne-km (m RTK)2,0022,084(3.9%) 8,0586,82818.0%
Available tonne-km (m ATK)3,1062,70314.9% 11,4699,74617.7%
Load factor (%)64.5%77.1%(12.6) 70.3%70.1%0.2


Air France activity

  Q4  Year to date
Total Passenger network activity20212020Variation 20212020Variation
Passengers carried (‘000s)7,6443,018153.3% 21,81617,65923.5%
Revenue pax-kilometers (m RPK)22,1537,946178.8% 60,18047,34027.1%
Available seat-kilometers (m ASK)30,32716,41684.7% 93,56873,32527.6%
Load factor (%)73.0%48.4%24.6 64.3%64.6%(0.2)


Long-haul       
Passengers carried (‘000s)2,586958170.0% 6,9885,20634.2%
Revenue pax-kilometers (m RPK)17,8606,284184.2% 47,12736,93327.6%
Available seat-kilometers (m ASK)24,42513,79177.1% 75,07158,16229.1%
Load factor (%)73.1%45.6%27.6 62.8%63.5%(0.7)


Short and Medium-haul       
Passengers carried (‘000s)5,0582,060145.5% 14,82812,45319.1%
Revenue pax-kilometers (m RPK)4,2931,662158.4% 13,05410,40625.4%
Available seat-kilometers (m ASK)5,9022,625124.9% 18,49715,16322.0%
Load factor (%)72.7%63.3%9.4 70.6%68.6%1.9


  Q4  Year to date
Cargo activity20212020Variation 20212020Variation
Revenue tonne-km (m RTK)95684213.5% 3,6042,64436.3%
Available tonne-km (m ATK)1,6771,23735.5% 5,8714,36234.6%
Load factor (%)57.0%68.1%(11.1) 61.4%60.6%0.8

KLM activity

  Q4  Year to date
Total Passenger network activity20212020Variation 20212020Variation
Passengers carried (‘000s)5,1962,195136.7% 14,03911,23125.0%
Revenue pax-kilometers (m RPK)15,5576,405142.9% 40,91233,87320.8%
Available seat-kilometers (m ASK)23,15818,48425.3% 82,45264,84227.2%
Load factor (%)67.2%34.7%32.5 49.6%52.2%(2.6)


Long-haul       
Passengers carried (‘000s)1,561635145.9% 4,0503,46316.9%
Revenue pax-kilometers (m RPK)12,2044,956146.3% 31,22727,07015.4%
Available seat-kilometers (m ASK)18,46415,98615.5% 68,28854,39225.5%
Load factor (%)66.1%31.0%35.1 45.7%49.8%(4.0)


Short and Medium-haul       
Passengers carried (‘000s)3,6351,560133.0% 9,9897,76728.6%
Revenue pax-kilometers (m RPK)3,3531,449131.3% 9,6856,80342.4%
Available seat-kilometers (m ASK)4,6942,49787.9% 14,16310,45035.5%
Load factor (%)71.4%58.0%13.4 68.4%65.1%3.3


  Q4  Year to date
Cargo activity20212020Variation 20212020Variation
Revenue tonne-km (m RTK)1,0471,242(15.7%) 4,4544,1846.4%
Available tonne-km (m ATK)1,4301,466(2.5%) 5,5985,3854.0%
Load factor (%)73.2%84.7%(11.5) 79.6%77.7%1.8


1 The fourth 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

  • Q4_2021 Press release EN