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• Revenue Growth: Group revenue increased by 6% year-over-year.

• Operating Result: EUR0.4 billion, marking the strongest fourth quarter on record.

• Operating Margin: 5.1% for the year.

• Free Cash Flow: EUR300 million in adjusted recurring free cash flow.

• Net Debt-to-EBITDA Ratio: 1.7 times at the end of the fiscal year.

• Fleet Modernization: New generation aircraft account for 27% of the fleet, a 7-point increase from 2023.

• Premium Revenue Growth: 12% year-over-year, contributing 26.9% of total group revenue.

• Corporate Travel Revenue: Up 4% compared to 2023.

• Ancillary Revenue Growth: Increased by 20% in 2024.

• Cargo Business Performance: Strong year-end performance with 80% online bookings.

• Engineering and Maintenance Revenue Growth: Exceeded 20% growth.

• Non-Airline Revenue Growth: Increased by 22%.

• Operating Margin Improvement: 5.8% in Q4, with a EUR450 million improvement.

• Load Factor Increase: Capacity increased by more than 4%, with a load factor increase of almost 2%.

• Transavia Capacity and Yield Increase: Capacity up 6.9%, yield up 9%.

• Fuel Bill Reduction: Expected to decrease by EUR300 million in 2025.

• Warning! GuruFocus has detected 4 Warning Signs with AFLYY.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Air France-KLM (AFLYY) reported a 6% increase in group revenue for Q4 2024, with a significant improvement in operating results, marking the strongest fourth quarter on record.

• The company achieved a year operating margin of 5.1%, driven by solid unit revenue growth and lower fuel prices.

• Air France-KLM (AFLYY) generated EUR 300 million in adjusted recurring free cash flow, aligning with their 2023 Capital Market Day ambitions.

• The fleet modernization strategy is progressing well, with new generation aircraft now accounting for 27% of the fleet, a 7-point increase from the previous year.

• Premium revenue grew by 12% year over year, with premium cabins contributing 26.9% of total group revenue, reflecting a successful focus on high-value customers.

Negative Points

• Despite improvements, the company faced a challenging operational environment, impacting overall performance.

• The net debt-to-EBITDA ratio stood at 1.7 times, indicating ongoing financial leverage concerns.

• Air France-KLM (AFLYY) experienced a EUR 100 million decrease in full-year results compared to the previous year, highlighting areas for improvement.

• The company is still dealing with headwinds from increased French aviation taxes and Schiphol tariffs, impacting financial performance.

• Supply chain disruptions continue to affect operations, particularly in maintenance and repair solutions.