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Home » Airlines » Air France-KLM Group Reports €1.3bn Profit in Q3

Air France-KLM Group Reports €1.3bn Profit in Q3

Air France-KLM Group‘s solid performance in Q3 2023 resulted in a record €1.3bn operating profit, with an operating margin of 15.5% driven by strong summer demand.

Air France-KLM Group Q3 Highlights

  • Group capacity at 94% compared to 2019, with load factor at 90%
  • Group revenues at €8.7bn, up 7% compared to last year
  • Operating result at €1.3bn with an operating margin at 15.5%
  • Adjusted operating free cash flow at -€0.4bn driven by seasonal reversal of working capital and cash at hand at €10.2bn (including RCF)
  • Net debt down by €1.3bn compared to the end of 2022, leading to a Net debt/EBITDA ratio of 1.1x
  • Net income at €0.9bn, up €0.5bn compared to last year and further supporting equity restoration
  • Post-quarter events:
    • Air France-KLM to take up to a maximum 19.9% non-controlling stake in the share capital of the reorganized SAS AB, subject to approvals and conditions.
    • Air France-KLM signed a definitive agreement for a quasi-equity financing for €1.3 billion, with a potential upsize of €1.5 billion.

Comments From Air France-KLM Group CEO

Commenting on the results, Mr. Benjamin Smith, Group CEO, said:

“Air France-KLM delivered a solid quarter, marked by remarkable results. This performance was driven by strong summer demand. I would like to thank all our teams for their unfailing commitment during the season. Throughout the quarter, we also made significant progress on our sustainable strategic roadmap. Our landmark order for 50 Airbus A350 aircraft will significantly accelerate the renewal of our long-haul fleet, with more fuel-efficient, cost-effective and quieter aircraft. This new order represents a multi-billion investment to our sustainability roadmap, coming on top of previous orders for new generation widebody and narrowbody aircraft, and is complementary to our Sustainable Aviation Fuel commitments. It confirms our ambition to reach 64% of next-generation aircraft by 2028 and is another major step towards our target of reducing our CO2 emissions per passenger kilometer by 30% by 2030. We have also continued our efforts to further restore our equity, while leveraging the value of the Group’s assets, as illustrated by a non-dilutive financing agreement of our Flying Blue Loyalty program. Finally, we initiated a process to acquire up to 19.9% in SAS, with an option to increase our share after two years. By investing in SAS, we intend to enhance our offer and connectivity in the Nordics.”

Table of contents

Strong summer demand resulting in a record operating profit in Q3

 Current quarterYear to date
 2023change
Revenues (€m)8,660        +6.8%
EBITDA (€m)1,993316
Operating result (€m)1,342318
Operating margin (%)        15.5        %+2.9pt
Net income – Group part (€m)931471
Adj. operating free cash flow (€m)(434)(724)
 30 Sep 202331 Dec 2022
Net Debt5,0026,337
EBITDA trailing 12 months4,3933,615
Net Debt/EBITDA ratio1.1x1.8x
In the third quarter, revenues were up +8.9% at a constant currency compared to Q3 2022, driven by a strong summer demand. The operating result rose by €318 million, supported by a combination of an increase in capacity (+6%), a higher passenger load factor (+1.3 pt), and a continued high passenger yield (+1.8%). This strong performance enabled the Group to offset the decrease in Cargo revenues and inflation. Consequently, the operating margin stood at 15.5%, a significant improvement of +2.9pt compared to last year.

Net income stood at €931 million, up by €471 million, further supporting the equity restoration.

The adjusted operating free cash flow decreased to -€434 million due to seasonality in the ticket sales. The net debt ended at €5.0 billion, an improvement of €1.3 billion compared to year-end 2022.

Passenger unit revenue driving the group unit revenue increase

 Current quarterYear to date
 2023change
Passengers (thousands)26,904+7.6%
Capacity (ASK m)84,754+6.0%
Traffic (RPK m)76,025+7.6%
Passenger load factor89.7%+1.3pt
Passenger unit revenue per ASK (€ cts)8.87+3.3%
Group unit revenue per ASK
(€ cts)
9.39-1.1%
Group unit cost per ASK (€ cts) at constant fuel17.80-4.9%
In the third quarter of 2023, Air France-KLM welcomed 26.9 million passengers, 7.6% above the previous year. As capacity increased by 6.0% and traffic grew by 7.6%, the load factor increased by 1.3 points compared to last year.

Strong Group Passenger Unit Revenue

The Group achieved strong revenue growth per passenger, with a 3.3% increase compared to last year. This was mainly due to higher load factors on our flights and increased fares on certain routes.

Regarding costs, the Group’s expenses per available seat kilometer (ASK) increased by 3.6% when excluding fuel costs and adjusting for currency fluctuations. However, this is an improvement compared to Q2 2023. Higher salaries primarily drove the increase in costs. The Group partly offset this with improved productivity, profit sharing, and lower flight-related expenses.

Looking ahead, the Group expects the year-over-year increase in costs to decrease in the fourth quarter, and our overall forecast remains a low-single-digit increase.

Equity restoration: Air France-KLM and Apollo Global Management sign a definitive agreement for a quasi-equity financing for €1.3 billion, with a potential upsize to €1.5 billion

Air France-KLM and Apollo Global Management announced a €1.3 billion financing agreement on October 26, 2023. Apollo-managed funds will provide the funds with an option to increase it to €1.5 billion. This financing will be treated as quasi-equity under IFRS.

The agreement involves a dedicated operating affiliate of Air France-KLM. This affiliate will be responsible for the trademark and most commercial partner contracts of Air France and KLM’s joint loyalty program, Flying Blue. It will also become the exclusive issuer of miles for the airlines and their partners, helping to expand and enhance the growth of Flying Blue.

To facilitate this agreement, Apollo-managed funds will invest in perpetual bonds issued by the operating affiliate. This financing will be treated as equity under IFRS, and it will not dilute the existing shareholders’ ownership. The coupon rate for the bonds will be 6.4% for the first four years and can be redeemed at an overall financing cost of 6.75% on the first call date.

This financing arrangement is part of Air France-KLM’s efforts to strengthen its balance sheet and restore its IFRS equity. It will not impact the Flying Blue program or the ownership rights of Air France and KLM. Additionally, it will not affect the contracts of Air France, KLM, or Air France-KLM employees.

Air France-KLM to team up with SAS AB through equity and commercial cooperation

Air France-KLM recently announced its plan to acquire up to a 19.9% stake in SAS AB, Scandinavian Airlines. This investment aims to strengthen Air France-KLM’s presence in the Scandinavian market through closer collaboration between the airlines.

If all the necessary approvals and conditions are met, Air France-KLM, along with the Danish State, will invest $1.175 billion. This investment includes $475 million in common shares and $700 million in secured convertible bonds.

Air France-KLM’s contribution to the investment will be $144.5 million, with $109.5 million in common shares and $35 million in secured convertible bonds. Additionally, Air France-KLM can increase its stake and become a controlling shareholder in the future, subject to regulatory conditions and financial performance.

In addition to the investment, Air France-KLM plans to establish a commercial partnership with SAS AB, providing enhanced connectivity and access to Air France-KLM’s global network for Scandinavian customers. This collaboration would benefit both airlines and their respective customers.

Air France-KLM launches a global employee share purchase plan.

Air France-KLM recently introduced the “Partners for the Future” program, where eligible employees (about 95% of the workforce) from approximately 20 countries can purchase shares. This initiative aims to foster a stronger connection between the employees and the company by allowing them to have a long-term stake in the Group’s success. The shares will be issued as part of a capital increase, capped at 3% of Air France-KLM’s total share capital. This plan was approved during the Annual General Meeting on June 7, 2023, per resolutions 34 and 35.

Air France-KLM reverse share split and capital reduction.

Air France – KLM recently completed a reverse share split of all its outstanding shares. This decision was made by the Board of Directors at their meeting on July 4, 2023, and was approved during the Combined General Meeting on June 7, 2023. The company also acknowledged the reduction of the nominal value of each share.

These transactions result in:

  • The exchange of 10 ordinary shares in the Company with a par value of €1 each for 1 new share with a par value of €1 (taking into account the simultaneous capital reduction reducing the par value of each new share from €10 to €1, i.e., a reduction of €9 per share allocated to the “share premium” account).
  • The Company’s share capital stands at 257,053,613 euros divided into 257,053,613 shares (ISIN code FR001400J770) with a par value of 1 euro each.


Air France-KLM 2023 Outlook Unchanged

Capacity

The Group expects the capacity in Available Seat Kilometers for Air France-KLM Group, including Transavia at an index of:

  • Above 95% for the fourth quarter of 2023
  • Circa 95% for the Full Year 2023


All indices compared to the respective period of 2019.

Unit cost

The Group expects a low single-digit increase compared to 2022.

Capex

Full-year 2023 net capex is estimated at 3.0 billion euros.

Business review

Network: Operating result more than doubled

NetworkCurrent quarterYear to date
2023changechange
constant currency
Traffic revenues (€m)6,919+3.4%
Total revenues (€m)7,199+4.2%
Operating result (€m)1,091+240
Operating margin (%)15.2%2.9 pt
Compared to the third quarter of 2022, total revenues increased by +4.2% to €7,199 million. The operating result improved by €240 million and amounted to €1,091 million. The network passenger business drove the revenue increase while the Cargo revenues declined compared to the third quarter last year due to a further normalization of the market.

Robust growth in unit revenue

Passenger networkCurrent quarterYear to date
2023changechange
constant currency
Passengers (thousands)19,836+4.5%
Capacity (ASK m)71,038+4.6%
Traffic (RPK m)63,523+6.0%
Load factor89.4%1.1pt
Total passenger revenues (€m)6,641+9.3%
Traffic passenger revenues (€m)6,480+8.5%
Unit revenue per ASK (€ cts)9.12+3.7%
Third quarter 2023 capacity in Available Seat Kilometers (ASK) was 4.6% higher than last year and at 89% of 2019 level, which aligns with the Group’s guidance provided during the second quarter 2023 results presentation (c.90% versus 2019). Higher traffic (+6.0%) than capacity growth has led to an increase in the load factor of 1.1 points, resulting in a total load factor of 89.4% while yield continued to rise (+4% against a constant currency).

This performance had a positive impact on Unit revenue per ASK, which rose by 5.7% at a constant currency.

During the third quarter, Air France-KLM observed the following trends by region:

North Atlantic

Demand recovery continued to be driven by Point of Origin North America. Yield increased by 6% at the same capacity and load factor level (91%). Corporate traffic stood at 80% of 2019 levels.

Latin America

Demand remained very strong over the summer, enabling the Group to maintain yield performance versus high summer 2022 reference on traffic growth +10% (on capacity +9%), reaching a load factor at 93%.

Asia & Middle East

Capacity in the third quarter has significantly increased versus 2022 by 49%, mainly driven by China and Japan. Nevertheless, this is still -33% below 2019 levels. Due to this significant increase in capacity, yield slightly decreased by -1% compared to last year (but still 39.5% above 2019 level). However, the load factor increased thanks to strong demand.

Caribbean & Indian Ocean

The third quarter continued to show capacity reductions compared to 2022 (-24%) due to the redeployment of the fleet to other long-haul areas and a high comparison basis in 2022. This lower capacity pushed the load factor up to 90%, and yield improved by 20%.

Africa

Despite the geopolitical situation in Niger, Mali, and Burkina Faso, the Group enjoyed continued strong traffic dynamics with load factor up 2 points compared to 2022. Robust yield at 4% above 2022.

Short and Medium-haul

Capacity increased by +3% with different dynamics: KLM Medium Haul is up +13% (impacted by operational issues last year). Air France Medium Haul is stable. Air France domestic is down -18%. The Group increased the yield +3% on the back of a stable load factor at 85%.

Cargo: continued normalization of the activity translating into a decrease in unit revenues

Cargo businessCurrent quarterYear to date
2023changechange
constant currency
Tons (thousands)218-2.1%
Capacity (ATK m)3,654+3.3%
Traffic (RTK m)1,6360.1%
Load factor44.8%-1.4pt
Total Cargo revenues (€m)558-32.8%
Traffic Cargo revenues (€m)439-39.1%
Unit revenue per ATK (€ cts)12.02-41.0%
Compared to last year, total revenues dropped by -32.8% (as a reminder, revenue decreased by -33.9% in Q2 2023). The traffic increased year over year by 0.1% on the back of strong demand in 2022. The load factor was -1.4 points below 2022 due to the increased belly capacity. The yield also declined, resulting in a decrease in unit revenue per Available Ton Kilometer of -38.9% at constant currency. The decrease in unit revenue per ATK at constant currency has stabilized compared to 2022 (Q3 2023: -38.9%; YTD 2023: -38.3%).

The resumption of passenger travel resulted in an increase in Available Ton Kilometers of 3.3% versus the third quarter of 2022. Furthermore, some operational issues with the Group’s full freighters resulted in reduced South American operations to restore reliable operational performance for customers.

Transavia: Load factor up while capacity growth of 14%

TransaviaCurrent quarterYear to date
2023change2023
Passengers (thousands)7,068+17.4%
Capacity (ASK m)13,716+14.0%
Traffic (RPK m)12,502+16.9%
Load factor91.2%+2.2pt
Total Passenger revenues (€m)1,014+18.6%
Unit revenue per ASK (€ cts)7.55+2.2%
Unit cost per ASK (€ cts)6.18(2.9)%
Operating result (€m)188+65
The forward booking load factor for the fourth quarter of 2023 compared to last year is stable, and the first quarter of 2024 is at a higher level than the year before while capacity continues to grow.
The forward booking load factor for the fourth quarter of 2023 compared to last year is stable, and the first quarter of 2024 is at a higher level than the year before while capacity continues to grow.

Maintenance business: Operating margin above last year

MaintenanceCurrent quarterYear to date
2023changechange
constant currency
Total revenues (€m)1,053+27.6%
Third party revenues (€m)437+27.7%
Operating result (€m)6317
Operating margin (%)6.0%0.4pt
Total revenues increased by 27.6% compared with the same quarter last year, while third-party revenues increased by 29.4% at constant currency, showing a robust recovery.

The operating margin in the third quarter stood at 6.0%, which is 0.4 points higher than in 2022 and almost in line with 2019 levels (6.1%).

Air France-KLM Airbus Deal for A350 Component Support

Air France-KLM and Airbus entered exclusive negotiations to create a joint venture dedicated to Airbus A350 component support.

Air France-KLM and Airbus made an exciting announcement on September 4th, 2023. They have entered into exclusive negotiations regarding a long-term strategic partnership. The partnership aims to enhance support for Airbus A350 components, including supply chain management and repairs. Additionally, both parties plan to establish a shared-access pool of aircraft components worldwide.

To cement their collaboration, Air France and Airbus are considering a 50-50 joint venture. This venture would transfer aircraft component assets from both companies into the joint venture’s pool. By joining forces, Air France Industries KLM Engineering & Maintenance and Airbus aim to provide better maintenance services for the growing Airbus A350 fleet. With 1,000 aircraft on order and 550 currently in service worldwide, there is a need for enhanced capacity, a broader global presence, and the development of innovative solutions.

The goal is to finalize the terms of this strategic partnership by the first half of 2024, pending approval from relevant authorities. This collaboration is poised to bring exciting advancements in the aviation industry in the years to come.

Air France-KLM Fleet

Air France-KLM has been focusing on updating its fleet for improved performance and reduced environmental impact. In 2022, they added new aircraft such as the B787-10, A350-900, B737-800, A220-300, Embraer 195-E2, and Embraer 190. They also phased out older aircraft like the B737-700, A321, A320, A319, A318, and CRJ-1000. Overall, the fleet grew by 23 aircraft.

Looking ahead, Air France-KLM is committed to investing in new-generation aircraft to enhance their economic efficiency and lower CO2 emissions. They recently announced plans to order 50 Airbus A350 aircraft, with the option to purchase 40 more. These aircraft will be gradually delivered from 2026 to 2030, allowing flexibility in allocation based on market needs and regulations.

The new Airbus A350s will replace older planes like the Airbus A330 and Boeing 777, contributing to a more modern and environmentally friendly fleet. In addition to this order, Air France-KLM has already received 22 out of the 41 Airbus A350-900s it previously ordered for Air France. Moreover, they have also ordered 8 Airbus A350 Full Freighter versions to enhance their cargo fleet.

By renewing their fleet, Air France-KLM aims to immediately reduce CO2 and noise emissions, complementing their efforts in using sustainable aviation fuel and implementing eco-piloting techniques. Their long-term goal is to achieve a 30% reduction in CO2 emissions per passenger/km by 2030 compared to 2019 levels. Since the 2000s, the company has already achieved a 40% reduction in noise footprint, and they continue to collaborate with all stakeholders on improving their operations.

By 2028, Air France-KLM plans to have new-generation aircraft comprising 64% of its fleet, a significant increase from the 5% in 2019.

Strong profitability for both airlines

Air France Group

 Current quarterYear to date
2023change2023
Revenue (in €m)5,374+7.5%
EBITDA (in €m)1,209+201
Operating result (in €m)806+236
Operating margin (%)15.0%+3.6pt
Air France’s performance stems from a strong performance long-haul, increasing revenue of +7.5%. Operating result is up +236 million euros compared to last year.

KLM Group

 Current quarterYear-to-date
2023change2023
Revenue (in €m)3,425+5.9%
EBITDA (in €m)786+98
Operating result (in €m)539+96
Operating margin (%)15.7%+2.0pt
KLM’s revenue grew by +5.9% on the back of improved operations, although not optimal yet, while operating margin stood at 15.7%, representing an improvement of +2.0pt compared to last year.
Nb: The Sum of individual airline results does not add up to AF-KLM total due to intercompany eliminations at the Group level.

Income Statement


 Current QuarterYear to Date
in € million20232022
  restated *
Revenues from ordinary activities8,6608,112
Aircraft fuel(1,918)(2,325)
Carbon emission(57)(33)
Chartering costs(167)(92)
Landing fees and air routes charges(539)(488)
Catering(225)(206)
Handling charges and other operating costs(499)(468)
Aircraft maintenance costs(585)(524)
Commercial and distribution costs(268)(257)
Other external expenses(464)(375)
Salaries and related costs(2,146)(1,897)
Taxes other than income taxes(40)(38)
Other income and expenses241268
EBITDA1,9931,677
Amortization, depreciation and provisions(651)(653)
Income from current operations1,3421,024
Sales of aircraft equipment56
Other non-current income and expenses(3)(30)
Income from operating activities1,3441,000
Cost of financial debt(148)(139)
Income from cash & cash equivalent679
Net cost of financial debt(81)(130)
Other financial income and expenses(168)(335)
Income before tax1,095535
Income taxes(155)(71)
Net income of consolidated companies940464
Share of profits (losses) of associates62
Net Income for the period946466
Non-controlling interests156
Net Income for the period – Equity holders931460
** Restated figures include the change in accounting principles for CO2 quotas*

Consolidated balance sheet

AssetsSeptember 30, 2023December 31, 2022
(in € million) Restated *
Goodwill225225
Intangible assets1,1061,127
Flight equipment11,29610,614
Other property, plant and equipment1,3791,375
Right-of-use assets5,5965,428
Investments in equity associates127120
Pension assets7139
Other non-current financial assets1,3921,184
Non-current derivative financial assets222262
Deferred tax assets578714
Other non-current assets7678
Total non-current assets22,06821,166
Other current financial assets494620
Current derivative financial assets529327
Inventories799723
Trade receivables2,3331,785
Other current assets1,062979
Cash and cash equivalents6,4816,626
Assets held for sale8279
Total current assets11,78011,139
Total assets        33,848                32,305        
** Restated figures include the change in accounting principles for CO2 quotas*

Liabilities and Equity

Liabilities and equitySeptember 30, 2023December 31, 2022
(in € million)  
Issued capital        257                2,571        
Additional paid-in capital        7,531                5,217        
Treasury shares        (25)        (25)        
Perpetual        1,062                933        
Reserves and retained earnings(10,414)(11,700)
Equity attributable to equity holders of Air France-KLM(1,589)(3,004)
Perpetual        1,006                510        
Reserves and retained earnings        19                14        
Equity attributable Non-controlling interests1,025524
Total equity(564)(2,480)
Pension provisions        1,647                1,634        
Non-current return obligation liabilities and provisions for leased aircrafts and other provisions        4,089                4,149        
Non-current financial liabilities        7,572                9,657        
Non-current lease debt        3,339                3,318        
Non-current derivative financial liabilities        11                21        
Deferred tax liabilities        8                1        
Other non-current liabilities1,5812,343
Total non-current liabilities18,24721,123
Current return obligation liabilities and provisions for leased aircrafts and other provisions        853                740        
Current financial liabilities        1,490                896        
Current lease debt        850                834        
Current derivative financial liabilities        34                83        
Trade payables        2,815                2,424        
Deferred revenue on ticket sales        4,324                3,725        
Frequent flyer programs        908                900        
Other current liabilities        4,890                4,057        
Bank overdrafts13
Total current liabilities16,16513,662
Total equity and liabilities        33,848                32,305        

Consolidated Cash Flows January 1 – September 30

Period from January 1 to September 3020232022
(in € million) restated *
Net income        1,221                240        
Amortization, depreciation and operating provisions        1,839                1,770        
Financial provisions        157                105        
Loss (gain) on disposals of tangible and intangible assets        (54)        (45)        
Derivatives – non monetary result        (6)        (28)        
Unrealized foreign exchange gains and losses, net        24                523        
Share of (profits) losses of associates        (7)        –        
Deferred taxes        78                (234)        
Impairment        2                19        
Other non-monetary items        (166)        (147)        
Financial capacity        3,088                2,203        
(Increase) / decrease in inventories        (81)        (119)        
(Increase) / decrease in trade receivables        (491)        (431)        
Increase / (decrease) in trade payables        324                786        
Increase / (decrease) in advanced ticket sales        608                1,489        
Change in other assets and liabilities        (13)        548        
Change in working capital requirement        347                2,273        
Net cash flow from operating activities        3,435                4,476        
Acquisition of subsidiaries, of shares in non-controlled entities        (2)        (1)        
Acquisition of warrants ⁽¹⁾        (12)        –        
Purchase of property plant and equipment and intangible assets        (2,280)        (2,048)        
Proceeds on disposal of property plant and equipment and intangible assets        276                678        
Dividends received        3                1        
Decrease (increase) in net investments, more than 3 months        112                (240)        
Net cash flow used in investing activities        (1,903)        (1,610)
Increase of equity                        1,551        
Cash and cash equivalents and bank overdrafts at the beginning of period        2                3        
Payments to acquire treasury shares        (1)        –        
Issuance of perpetual        1,226                497        
Repayment on perpetual        (595)        (1,480)        
Coupons on perpetual        (87)        (238)        
Issuance of debt        1,798                769        
Repayment on debt        (3,116)        (1,600)        
Payments on lease debts        (625)        (653)        
New loans        (298)        (177)        
Repayment on loans        127                16        
Dividends paid        (90)        –        
Net cash flow from financing activities        (1,659)        (1,312)
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold)        (16)        53        
Change in cash and cash equivalents and bank overdrafts        (143)        1,607        
** Restated figures include the change in accounting principles for CO2 quotas.*        6,623                6,654        
Cash and cash equivalents and bank overdrafts at the end of the period        6,480                8,261        
(1) Participation in warrants issue of GOL 26 September
(1) Participation to warrants issue of GOL 26 September

Return on capital employed (ROCE)

In € millionSep 30, 2023Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 30,
2022
Dec 31,
2021
  restated(2)restated(2)restated(1) (2)restated(1) (2)restated(1) (2)restated(1) (2)restated(1)(2)
Goodwill and intangible assets        1,331                1,339                1,351                1,352                1,350                1,361                1,363                1,380        
Flight equipment        11,296                10,957                10,954                10,614                10,298                10,521                10,537                10,466        
Other property, plant and equipment        1,379                1,389                1,372                1,375                1,349                1,358                1,378                1,402        
Right of use assets        5,596                5,480                5,304                5,428                5,536                5,439                5,205                5,148        
Investments in equity associates        127                121                122                120                111                108                107                109        
Financial assets excluding marketable securities, accrued interests and financial deposits        191                190                169                169                164                162                158                157        
Provisions, excluding pension, cargo litigation and restructuring        (4,481)        (4,248)                (4,255)                (4,347)                (4,792)                (4,473)                (4,240)                (4,180)        
WCR (3)        (7,804)        (8,917)                (8,696)                (7,213)                (7,609)                (8,338)                (6,736)                (5,453)        
Capital employed        7,635                6,311                6,321                7,498                6,407                6,138                7,772                9,029        
Average capital employed (A)6,9417,337
Adjusted results from current operations1,9021,234
– Dividends received(2)
– Share of profits (losses) of associates18(13)
– Normative income tax(495)(316)
Adjusted result from current operations after tax (B)1,423905
ROCE, trailing 12 months (B/A)20.5%12.3%
(1) Proforma figures include restatement related to change in accounting scheme of ETS quotas (see financial statements of the period).

(2) Compared to previous periods, the working capital has been restated to exclude the report of social & fiscal charges granted consequently to Covid.

(3) Excluding the report of social & fiscal charges granted consequently to Covid.

Net debt

 (in € million)September 30, 2023December 31, 2022
Current and non-current financial liabilities9,06210,553
Current and non-current lease debt4,1894,152
Accrued interest(98)(127)
Deposits related to financial liabilities(106)(101)
Deposits related to lease debt(100)(99)
Derivatives impact on debt(34)(35)
Gross financial liabilities (I)12,91314,343
Cash and cash equivalents6,4816,626
Marketable securities > 3 months447572
Bonds984811
Bank overdrafts(1)(3)
Net cash (II)7,9118,006
Net debt (I-II)5,0026,337

Adjusted Operating Free Cash Flow

 Current QuarterYear to Date
 20232022
(in € million) **restated ***
Net cash flow from operating activities589890
Purchase of property plant and equipment and intangible assets(884)(591)
Proceeds on disposal of property plant and equipment and intangible assets65202
Operating free cash flow(230)501
Payments on lease debts(204)(211)
Operating free cash flow adjusted(434)290
** Restated figures include the change in accounting principles for CO2 quotas*

Bridge from EBITDA to Self-financing capacity

 Current QuarterYear to Date
 20232022
(in € million) **restated ***
EBITDA1,9931,677
Provisions (risk and other)(2)(2)
Correction of spare parts inventory(1)
Addition to pension provisions3832
Reversal to pension provisions (cash-out)(19)(18)
Sales of tangible and intangible assets (excluding aeronauticals)(2)(3)
Income from operating activities – cash impact2,0071,686
Restructuring costs(26)(49)
Other non-current income and expenses(1)(4)
Cost of financial liability(149)(146)
Financial income615
Realized foreign exchanges gain/loss(4)(14)
Settlement of forwards derivatives – cash(2)
Other financial charges & expenses – cash(11)(11)
Current income tax(96)(22)
Other elements5
Self-financing capacity1,7841,445
** Restated figures include the change in accounting principles for CO2 quotas*

Unit cost: net cost per ASK

 Current QuarterYear to date
 20232022
Total operating expenses (in €m)7,3167,088
Total other revenues (in €m)(704)(529)
Net cost (in €m)6,6126,559
Capacity produced, reported in ASK84,75479,937
Net cost per ASK (in € cents per ASK)7.808.21
Gross change         -4.9        %
Currency effect on net costs (in €m) (160)
Change at constant currency         -2.5        %
Fuel price effect (in €m) (382)
Net cost per ASK on a constant currency and constant fuel price
(in € cents per ASK)
7.807.53
Change at constant currency and constant fuel price         3.6        %
Furlough +13
 7.807.54
Change at constant currency and constant fuel price excluding furlough         3.4%

Air France-KLM Group Fleet as of 30 September

Aircraft typeAF (incl. HOP)3KL (incl. KLC & MP)4TransaviaOwnedFinance leaseOperating leaseTotalIn operationChange vs 31/12/22
B777-3004316 2015245959 
B777-2001815 28143333 
B787-91013 47122323 
B787-10 10 28 10103
A380-8004  2114  
A350-90022  481022222
A330-300 5   555 
A330-200156 11 102121 
Total Long-Haul1126507140661771735
B737-900 5 5  55 
B737-800 3111134810014214116
B737-700 647 31010 
A32116  9 71616-2
A32038  43313837-2
A31914  10 41414-3
A3186  4 266-3
A220-30030  21 9303015
Total Medium-Haul10442115941115626125921
Canadair Jet 10003  3  3  
Canadair Jet 700         
Embraer 195 E2 18   1818184
Embraer 1902030 1742950501
Embraer 175 17 314 1717 
Embraer 17013  10 31313 
Total Regional36650331850101985
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2    222 
Total Cargo240402660
          
Total2541761152026927454553631

Air France-KLM Q3 2023 Traffic

Passenger network activity

 Current quarterYear to date
Total network airlines20232022
Passengers carried (‘000s)19,83618,980
Revenue pax-kilometers (m RPK)63,52359,948
Available seat-kilometers (m ASK)71,03867,907
Load factor (%)89%88%
   
Long-haul  
Passengers carried (‘000s)6,9366,623
Revenue pax-kilometers (m RPK)51,51748,324
Available seat kilometers (m ASK)56,87954,155
Load factor (%)91%89%
   
North America  
Passengers carried (‘000s)2,7312,696
Revenue pax-kilometers (m RPK)19,27219,197
Available seat-kilometers (m ASK)21,27821,217
Load factor (%)91%90%
   
Latin America  
Passengers carried (‘000s)878801
Revenue pax-kilometers (m RPK)8,3557,600
Available seat-kilometers (m ASK)8,9838,265
Load factor (%)93%92%
   
Asia / Middle East  
Passengers carried (‘000s)1,392981
Revenue pax-kilometers (m RPK)11,0177,052
Available seat kilometers (m ASK)12,2458,243
Load factor (%)90%86%
   
Africa  
Passengers carried (‘000s)1,0891,078
Revenue pax-kilometers (m RPK)6,6966,452
Available seat-kilometers (m ASK)7,5367,388
Load factor (%)89%87%
   
Caribbean / Indian Ocean  
Passengers carried (‘000s)8461,067
Revenue pax-kilometers (m RPK)6,1778,022
Available seat kilometers (m ASK)6,8389,042
Load factor (%)90%89%
   
Short and Medium-haul  
Passengers carried (‘000s)12,90012,357
Revenue pax-kilometers (m RPK)12,00511,624
Available seat-kilometers (m ASK)14,15913,753
Load factor (%)85%85%

Transavia Activity Q3

 Current quarterYear to date
Transavia20232022
Passengers carried (‘000s)7,0686,022
Revenue seat-kilometers (m RSK)12,50210,697
Available seat-kilometers (m ASK)13,71612,029
Load factor (%)91%89%
Total Group passenger activity

Air France- KLM Total Group Passengers Q3

 Current quarterYear to date
Total Group20232022
Passengers carried (‘000s)26,90425,002
Revenue pax-kilometers (m RPK)76,02570,645
Available seat-kilometers (m ASK)84,75479,937
Load factor (%)90%88%
Cargo activity

Air France-KLM Total Group Cargo Q3

 Current quarterYear to date
Cargo20232022
Revenue tonne-km (m RTK)1,6361,635
Available tonne-km (m ATK)3,6543,537
Load factor (%)45%46%

Air France Activity

 Current quarterYear to date
Total Passenger network activity20232022
Passengers carried (‘000s)11,45511,528
Revenue pax-kilometers (m RPK)38,68636,159
Available seat-kilometers (m ASK)43,37940,992
Load factor (%)89%88%
   
Long-haul  
Passengers carried (‘000s)4,3824,115
Revenue pax-kilometers (m RPK)31,85329,056
Available seat-kilometers (m ASK)35,35032,657
Load factor (%)90%89%
   
Short and Medium-haul  
Passengers carried (‘000s)7,0737,413
Revenue pax-kilometers (m RPK)6,8337,103
Available seat-kilometers (m ASK)8,0298,335
Load factor (%)85%85%
   
Cargo activity  
Revenue tonne-km (m RTK)818834
Available tonne-km (m ATK)2,1012,025
Load factor (%)39%41%

KLM Activity

 Current quarterYear to date
Total Passenger network activity20232022
Passengers carried (‘000s)8,3807,452
Revenue pax-kilometers (m RPK)24,83623,789
Available seat-kilometers (m ASK)27,66026,916
Load factor (%)90%88%
   
Long-haul  
Passengers carried (‘000s)2,5542,508
Revenue pax-kilometers (m RPK)19,66419,267
Available seat-kilometers (m ASK)21,52921,498
Load factor (%)91%90%
   
Short and Medium-haul  
Passengers carried (‘000s)5,8274,944
Revenue pax-kilometers (m RPK)5,1724,522
Available seat-kilometers (m ASK)6,1315,418
Load factor (%)84%83%
   
Cargo activity  
Revenue tonne-km (m RTK)818801
Available tonne-km (m ATK)1,5531,512
Load factor (%)53%53%
1 change is nominal and not corrected for fuel price
2 against a constant fuel price, constant currency and excluding furlough contribution
3 Excluding Transavia

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