Q3 2024 results press release

In This Article:

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THIRD QUARTER 2024

November 7, 2024

Operating result stable at €1.2 billion excluding Olympic Games impact

Underlying Group unit revenue trend favorable

  • Group capacity increased by 3.6% compared to last year with load factor at 89%

  • Group revenues at €9.0bn, up 3.7% compared to last year

  • Unit cost at +3.4% compared to 2023 due to continued higher cost levels for staff, operation and maintenance at KLM. Firm measures announced to structurally improve KLM’s operational and financial performance

  • Operating result stood at €1,180m, with operating margin at 13.1%. Operating result equivalent to that of last year excluding Olympic Games unit revenue impact of €160m. One-time payment of €50m to Air France staff for successful operations during the event

  • 9-months Recurring adjusted operating free cash flow at €23m

  • Cash at hand at €9bn and Net debt/EBITDA ratio of 1.7x

  • Acquisition of a 19.9% non-controlling stake in the share capital of SAS AB successfully completed

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

The third quarter revealed mixed trends for the Air France-KLM Group. Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements. These measures are aligned with the Group’s ongoing transformation efforts aimed at further enhancing overall performance.

Beyond their financial implications, the Olympic Games provided a unique platform to demonstrate the Group’s operational expertise and capabilities while offering unparalleled visibility for France as a destination. In the long term, this will be advantageous for the Group.

We also made further progress in our decarbonization initiatives, as evidenced by the signing of a major Sustainable Aviation Fuel (SAF) purchase agreement with TotalEnergies. This contract, one of the largest ever signed by the Group, highlights our commitment to fostering the development of SAF supply chains, which is a crucial lever in reducing our carbon footprint.

Q3 Group unit revenue broadly stable

Third Quarter

Year to date

2024

change

change
constant currency

2024

change

change
constant currency

Group Passengers (thousands)

27,855

+3.5%

74,470

+4.6%

Group Capacity (ASK m)

87,795

+3.6%

241,861

+4.1%

Traffic (RPK m)

78,367

+3.1%

212,570

+4.0%

Group Passenger load factor

89.3%

-0.4pt

87.9%

-0.1pt

Passenger unit revenue per ASK (€ cts)

8.78

-1.0%

-0.8%

8.22

-0.2%

+0.3%


Third Quarter

Year to date

2024

change

change
constant currency

2024

change

change
constant currency

Revenues (€m)

8,979

+3.7%

+3.8%

23,582

+4.3%

+4.7%

EBITDA (€m)

1,896

-97

-65

3,241

-366

-271

Operating result (€m)

1,180

-162

-130

1,204

-565

-469

Operating margin (%)

13.1%

-2.4pt

-2.0pt

5.1%

-2.7pt

-2.3pt

Net income (€m)

824

-122

510

-711

Group unit revenue per ASK (€cts)

9.32

-0.7%

-0.6%

8.79

-1.1%

-0.6%

Group unit cost at constant fuel, constant currency and excluding ETS

7.97

+3.4%

8.29

+3.0%


30 September 2024

31 Dec 2023

Operating Free cash flow (€m)

28

Adj. recurring operating free cash flow* (€m)

23

Net Debt (€m)

6,698

5,041

EBITDA trailing 12 months (€m)

3,842

4,208

Net Debt/EBITDA ratio

1.7x

1.2x

*IFRS Operating free cash flow corrected from the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period and payment of lease debt and interests paid and received