Thursday, 30 July 2020

Air France - KLM latest result show losses of 1,553 million euros

The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met today, Thursday 30 July to approve the financial statements for the First Half 2020 and review the acceleration of the Group transformation plan.


SECOND QUARTER 2020
The Covid-19 crisis severely impacted the Second quarter 2020 results:
  • Revenue at 1,182 million euros, down 5,839 million compared to last year
  • Operating result at –1,553 million euros, down 1,976 million euros compared to last year
  • EBITDA loss minimalized to an average of 260 million euros per month compared to an initial estimate of 400 million euros thanks to effective cash preservation and cost control measures
  • Net income at -2,612 million euros, including an impairment on Airbus 380 and 340 aircraft at respectively -520 and -72 million euros, Covid-19 related over-hedging at -105 million euros, and restructuring provision at -227 million euros
  • Net debt/EBITDA ratio at 4.8x, compared to 1.5x at the end of 2019
The French and the Dutch governments have provided financial packages with conditions attached to increase competitiveness and achieve sustainability objectives. Thus at 30 June 2020 the Air France-KLM Group has 14.2 billion euros of liquidity or credit lines at its disposal to weather the crisis and restructure its business.



OUTLOOK
The Group has introduced stringent sanitary measures on board and, supported by the ongoing “Travel with Confidence” campaign, has seen a slow recovery of leisure demand in June and July 2020.

The airlines of the Group are carefully increasing capacity for the summer months, wherein overall capacity levels are managed based on continuously scrutinizing developments in market demand and government policies, including the opening of borders and slot moratoriums. The Group aims to rebuild its worldwide network step by step with a wide variety of destinations in the portfolio.

Nevertheless, there is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented than before the Covid-19 crisis, especially on the Long Haul network.

On this basis the Group expects:
  • Capacity in Available Seat kilometers at index 45 for the third quarter 2020 and at index 65 for the fourth quarter 2020 compared to last year.
  • Negative load factor developments for the third quarter 2020, particularly on long-haul network, and anticipates negative yield mix effects due to a delayed recovery in business compared to leisure motive traffic.
The Group has further reduced its capital expenditure plan for 2020 by an additional -0.3 billion euros to 2.1 billion euros. This is a reduction of -1.5 billion euros compared to the initial 2020 guidance of 3.6 billion euros.
The Group foresees a significantly negative EBITDA in the second half year 2020.
Air France-KLM GroupSecond quarterHalf year
2020Change2020      Change
Passengers (thousands)1,217-95.6%19,328-61.7%
Passenger Unit revenue per ASK1 (€ cts)3.88-42.8%5.57-14.6%
Operating result (€m)-1,553-1,976-2,368-2,505
Net income – Group part (€m)-2,612-2,709-4,413-4,186
Adj. operating free cash flow (€m)-1,501-1,609-2,327-2,677
Net debt at end of period (€m)7,9731,826

The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 30 July 2020 to approve the financial statements for the First Half 2020. Group CEO Mr. Benjamin Smith said:
“The second quarter results demonstrate the unprecedented impact of the COVID-19 crisis on the activity of the Air France-KLM Group and of all airlines worldwide. The Group reported an operating loss of 1.5 billion euros for the quarter, with activity virtually at a standstill in April. The cost reduction and liquidity preservation measures rapidly implemented have nevertheless enabled our operational losses to be reduced. The exceptional support of the French and Dutch governments has provided Air France-KLM with the liquidity needed to weather the crisis and ensure a gradual recovery in business. However, the uncertainties linked to the health situation, the opening of borders and the general economic situation are very strong. We must also adapt to important changes in customers' behaviour. This context pushes us to accelerate our transformation to improve our economic and environmental performance according to the main pillars of our strategic plan. I am confident in our ability to implement these projects with our teams in order to emerge from this exceptional crisis.”
Business review 
Network: Skeleton network operation in April and May 2020, slow resumption of traffic in June 2020 after lockdown easing across Europe
NetworkSecond quarterHalf year
2020ChangeChangeconstant currency2020ChangeChangeconstant currency
Total revenues (€m)938-84.3%-84.4%5,216-53.1%-53.5%
Scheduled revenues (€m)827-85.5%-85.6%4,897-53.8%-54.1%
Operating result (€m)-1,123-1,438-1,436-1,852-1,906-1,933
Second quarter 2020 revenues decreased by 84.4% at constant currency to 938 million euros. The operating result amounted to -1,123 million euros, a -1,436 million euros decrease at constant currency compared to last year. Measures are in place to preserve cash including reduction of investments, cost savings measures, deferral of supplier payments and partial activity for employees.
Passenger network: Skeleton operations to key cities in April and May, slow resumption of activity in June with reduced frequencies on a substantial part of the network routes
Second quarterHalf year
Passenger network2020ChangeChangeconstant currency2020ChangeChangeconstant currency
Passengers (thousands)1,128-95.1%16,889-60.4%
Capacity (ASK m)8,765-88.4%71,168-51.1%
Traffic (RPK m)3,261-95.1%53,109-58.3%
Load factor 37.2%-51.4 pt74.6%-12.9 pt
Total passenger revenues (€m)372-93.2%-93.2%4,183-58.4%-58.6%
Scheduled passenger revenues (€m)335-93.6%-93.6%4,006-58.6%-58.9%
Unit revenue per ASK (€ cts)3.83-44.9%-45.1%5.63-15.4%-15.9%
The passenger network activity in April and May 2020 was, as anticipated due to the lock downs and travel restrictions, effectively reduced to a skeleton operation connecting our home markets to key cities and a number of routes with high cargo demand.
The slow resumption of traffic in June 2020 on the short and medium haul networks was a result of lockdown easing’s across Europe.
For the second quarter 2020 the unit revenues were strongly down at -45.1% at constant currency compared to last year due to low load factors, partially offset by higher yields.
Since we introduced the refund policy, nearly 3 million direct sales requests have been processed (concerning flights cancelled since mid-March), representing nearly 90% of the volume of ongoing direct sales customer requests. Requests from customers who have booked through travel agencies can now be made through the agencies (gradual opening by country).
To handle this exceptional volume of requests related to program adjustments, the size of the team in charge of reimbursements was multiplied by 10 at the height of the activity, reaching more than 600 people thanks to internal and external reinforcements to process our customers' requests as quickly as possible.
Cargo: Strong Cargo yields due to gap between industry capacity and demand in the second quarter 2020
Second quarterHalf year
Cargo business2020ChangeChangeconstant currency2020ChangeChangeconstant currency
Tons (thousands)149-46.4%392-28.5%
Capacity (ATK m)1,581-56.3%4,772-32.6%
Traffic (RTK m)1,180-44.4%3,013-27.7%
Load factor 74.7%+16.0 pt63.1%+4.3 pt
Total Cargo revenues (€m)566+6.0%+5.2%1,032-4.5%-5.6%
Scheduled cargo revenues (€m)491+8.2%+7.4%890-4.0%-5.1%
Unit revenue per ATK (€ cts )31.06+147.6%+145.7%18.65+42.4%+40.8%
Global air cargo capacity is at the end of the second quarter 2020 approximately 27% lower than 2019 whereby industry air cargo load factors are the highest levels in past two years. The Cargo capacity of the Group has been down 56.3%, primarily driven by the reduction in belly capacity of passenger aircraft, with load factors strongly up 16.0 points for the quarter. Unit revenue were strongly positive for the second quarter 2020 up 145.7% compared to last year at constant currency.
On the demand side, world-wide air freight volumes are down due to Covid-19 crisis but are expected to rebound to 90 to 95% of pre Covid-19 levels in 2021. The supply-demand gap of the past months is foreseen to narrow as industry capacity supply will increase.
Transavia operating loss in the second quarter 2020 at -111 million euros, as fully impacted by Covid-19 crisis
Second quarterHalf year
Transavia2020Change2020Change
Passengers (thousands)90-98.2%2,439-68.8%
Capacity (ASK m)277-97.1%5,169-66.3%
Traffic (RPK m)181-97.9%4,636-67.2%
Load factor 65.3%-26.7 pt89.7%-2.3 pt
Total passenger revenues (€m)17-96.6%259-65.0%
Unit revenue per ASK (€ cts)5.47+4.4%4.74-1.9%
Unit cost per ASK (€ cts)45.46+871.8%8.46+71.4%
Operating result (€m)-111-164-193-176
The second quarter operating result ended 164 million euros lower compared to last year at an operational loss of -111 million euros, as a result of the Covid-19 crisis. Activity levels were close to zero in April and May 2020 with a progressive restart from early June, resulting in an activity level for the month of June 2020 of 8% compared to last year. Strict cash preservation measures are in place including reduction of investments, cost savings measures, deferral of supplier payments and partial activity measures.

Maintenance business operating result for Second quarter 2020 at -318 million euros, strongly impacted by Covid-19
Second quarterHalf year
Maintenance2020ChangeChangeconstant currency2020ChangeChangeconstant currency
Total revenues (€m)501-55.2%1,640-28.4%
Third-party revenues (€m)222-57.8%-59.3%716-33.8%-36.0%
Operating result  (€m)-318-370-376-321-419-430
Operating margin (%)-63.4%-68.1 pt-68.5 pt-19.6%-23.9 pt-24.3 pt
The Second quarter operating result stood at -318 million euros, a decrease of 370 million euros, highly impacted by the Covid-19 crisis.
Revenue highly declined in all three main businesses. In the second quarter, all clients of the E&M business have been impacted by the Covid-19 crisis resulting in a sharp decrease of revenues.
Operating costs have been reduced in the second quarter 2020 by a reduced maintenance activity level, partial activity pay schemes for employees and other initiated cost savings measures.
A provision had been posted in the operating result of the second quarter for around 210 million euros to take into account client situations including cash difficulties, fleet decreases and bankruptcies, and spare parts surplus due to the world wide fleet reductions expected as a result of the current crisis.
The E&M business is also strongly impacted by the activity decrease of the Air France-KLM Group airlines.
          
The Maintenance order book is assessed to 9.6 billion dollars at 30 June 2020 a decrease of 1.9 billion dollars compared to 31 December 2019, explained by the Covid-19 crisis effects already occurring and expected. The Maintenance business is carefully managing its external business, including agreements with clients on payment terms
Air France-KLM Group: Second quarter 2020 revenues down -83% and operating result down -1,976 million euros
Second quarterHalf year
2020ChangeChangeconstant currency2020ChangeChangeconstant currency
Capacity (ASK m)9,042-89.4%76,337-52.5%
Traffic (RPK m)3,442-95.5%57,746-59.2%
Passenger unit revenue per ASK (€ cts)3.88-42.6%-42.8%5.57-14.0%-14.6%
Group unit revenue per ASK (€ cts)9.31+27.8%+27.3%6.73-4.5%-5.2%
Group unit cost per ASK (€ cts) at constant fuel26.48+290.1%+351.2%9.84+41.1%+40.9%
Revenues (€m)1,182-83.2%-83.3%6,201-52.2%-52.6%
EBITDA (€m)-780-1,947-1942-840-2,451-2,481
Operating result (€m)-1,553-1,976-1972-2,368-2,505-2,537
Operating margin (%)-131.4%-137.4 pt-137.3 pt-38.2%-39.2 pt-39.5 pt
Net income - Group part (€m)-2,612-2,709-4,413-4,186
2019 results restated for LLP componentization accounting change and EU passenger compensation reclassification between revenues and external expenses
In the Second quarter 2020, the Air France-KLM Group posted an operating result of -1,553 million euros, down by 1,976 million euros compared to last year.

Net income amounted to -2,612 million euros in the second quarter 2020, a decrease of 2,709 million euros compared to last year, of which exceptional accounting items due to Covid-19: impairment for acceleration phase-out Airbus 380s -520 million euros and Airbus 340s -72 million euros, fuel “over hedge” -105 million euros and a restructuring costs provision for the KLM voluntary departure plan of     -188 million euros and for Air France pilots Voluntary Departure Plan of - 37 million euros.
Fuel “over hedge” -105 million euros for the remainder of 2020:

As a result of capacity reductions compared to the end of March 2020 assumptions partly offset by higher fuel prices, the Group increased its position of over-hedging. The change in fair value, initially recognized in equity, has been recycled to “Other financial income and expenses”
Currencies had a positive 55 million euro impact on revenues and a negative 59 million euro effect on costs including currency hedging in the second quarter of 2020.


The Second quarter 2020 unit cost increased by 290%, primarily caused by Covid-19 related capacity reductions
On a constant currency and fuel price basis, unit costs were up 351% in the Second quarter 2020.
Group net employee costs were down 50.4% in the second quarter 2020 compared to last year, supported by partial activity implementation at Air France and KLM, release of temporary and hired staff and no profit sharing provisions to be made at both airlines. The average number of FTEs (Full Time Equivalent) in the second quarter 2020 decreased by 4,000 compared to last year, including 2,400 hired staff.


Net debt up 1,826 million euros and leverage ratio at 4.8x
Second quarterHalf year
In € million2020Change2020Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)-1,161-2,276-1,331-2,838
Cash out related to Voluntary Departure Plans (€m)-6+0-15+0
Change in Working Capital Requirement (WCR) (€m)82+97543-248
Net cash flow from operating activities (€m)-1,085-2,179-803-3,086
Net investments* (€m)-254+481-1,112+319
Operating free cash flow (€m)-1,339-1,698-1,915-2,767
Repayment of lease debt-162+89-412+90
Adjusted operating free cash flow**-1,501-1,609-2,327-2,677
* 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 second quarter 2020 of -1,501 million euros, a decrease of 1,609 million euros compared to last year, mainly explained by an operating cash flow decline of 2,276 million euros, partly offset by a reduction in net investments of 481 million euros.
In € million30 Jun 202031 Dec 2019
Net debt7,9736,147
EBITDA trailing 12 months1,6784,128
Net debt/EBITDA trailing 12 months4.8 x1.5 x

Both airlines results negatively impacted in the Second quarter 2020
Second quarterHalf year
2020Change2020Change
Air France Group Operating result (€m)-1,058-1,212-1,594-1,500
Operating margin (%)-189.5%-193.1 pt-44.6%-43.4 pt
KLM Group Operating result (€m)-493-763-768-991
Operating margin (%)-70.3%-79.7 pt-27.0%-31.3 pt


OUTLOOK 2020
The Group has introduced stringent sanitary measures on board and, supported by the ongoing “Travel with Confidence” campaign, has seen a slow recovery of leisure demand in June 2020.

The airlines of the Group are carefully increasing capacity for the summer months, whereby overall capacity levels are managed based on continuously scrutinizing developments in market demand and government policies, including opening of the borders and slot moratoriums. The Group aims to rebuild its worldwide network step by step with a wide variety of destinations in the portfolio.

Nevertheless, there is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented than before the Covid-19 crisis, especially on the Long Haul network.
On this basis the Group expects:

  • Capacity in Available Seat kilometers at index 45 for the third quarter 2020 and at index 65 for the fourth quarter 2020 compared to last year.
  • Negative load factor developments for the third quarter 2020, particularly on long-haul network, and anticipates negative yield mix effects due to a delayed recovery in business compared to leisure motive traffic.
The Group foresees significantly negative EBITDA in the second half year 2020.
The French and the Dutch governments have provided financial packages with conditions attached to increase competitiveness and achieve sustainability objectives. Thus at 30 June 2020 the Air France-KLM Group has 14.2 billion euros of liquidity or credit lines at its disposal to weather the crisis and restructure its business.
Foreseen incidental elements with cash-impact in second half 2020:
  • Working Capital risk due to cash refunds of pre-paid ticket revenues estimated at 1.6 billion euros
  • Repayment of the currently drawn KLM revolving credit facilities 0.7 billion euros
  • The Hybrid bond with an outstanding principal; amount of 0.4 billion euros is intended to be repaid in full, the Group is considering refinancing options.
The Group has further reduced its capital expenditure plan for 2020 by an additional -0.3 billion euros to 2.1 billion euros. This is a reduction of -1.5 billion euros compared to the initial 2020 guidance of 3.6 billion euros.
             




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Income Statement
 Second quarterHalf year
€m20202019Change20202019Change
Sales1,1827,021-83.2%6,20112,963-52.2%
Other revenues00nm00nm
Revenues1,1827,021-83.2%6,20112,963-52.2%
Aircraft fuel-213-1,404-84.8%-1,397-2,605-46.4%
Chartering costs-24-135-82.2%-114-269-57.6%
Landing fees and en route charges-91-506-82.0%-478-941-49.2%
Catering-14-208-93.3%-178-395-54.9%
Handling charges and other operating costs-82-430-80.9%-441-840-47.5%
Aircraft maintenance costs-298-645-53.8%-912-1,296-29.6%
Commercial and distribution costs-36-267-86.5%-230-517-55.5%
Other external expenses-270-432-37.5%-673-872-22.8%
Salaries and related costs-1,016-2,048-50.4%-2,931-4,020-27.1%
Taxes other than income taxes-24-41-41.5%-80-93-14.0%
Other income and expenses106262-59.5%393495-20.6%
EBITDA-7801,167nm-8401,610nm
Amortization, depreciation and provisions-773-744+3.9%-1,527-1,473+3.7%
Income from current operations-1,553423nm-2,368137nm
Sales of aircraft equipment2510+150.0%2423+4.3%
Other non-current income and expenses-809-35+2,212.2%-854-32nm
Income from operating activities-2,337398nm-3,198130nm
Cost of financial debt-113-115-1.7%-215-221-2.7%
Income from cash and cash equivalent614-57.1%1227-55.6%
Net cost of financial debt-107-101+5.9%-203-194+4.6%
Other financial income and expenses-68-40+68.8%-733-133+451.1%
Income before tax-2,512257nm-4,134-197+1,994.6%
Income taxes-81-165-50.9%-254-37+586.5%
Net income of consolidated companies-2,59392nm-4,388-234+1,772.3%
Share of profits (losses) of associates-216nm-298nm
Net income for the period-2,61498nm-4,417-226+1,851.2%
Minority interest-21nm-41nm
Net income for the period – Group part-2,61297nm-4,413-227+1,944%
2019 results restated (with a similar impact in both years) for limited life parts componentization accounting change.
Consolidated Balance Sheet
Assets30 Jun 202031 Dec 2019
€m
Goodwill217217
Intangible assets1,2821,305
Flight equipment10,91911,334
Other property, plant and equipment1,5511,580
Right-of-use assets4,9385,173
Investments in equity associates267307
Pension assets254420
Other financial assets1,0711,096
Deferred tax assets282523
Other non-current assets231241
Total non-current assets21,01222,196
Other short-term financial assets394800
Inventories647737
Trade receivables1,3542,164
Other current assets1,1071,123
Cash and cash equivalents4,7963,715
Total current assets8,2988,539
Total assets29,31030,735

Liabilities and equity30 Jun 202031 Dec 2019
In million euros
Issued capital429429
Additional paid-in capital4,1394,139
Treasury shares-67-67
Perpetual403403
Reserves and retained earnings-7,463-2,620
Equity attributable to equity holders of Air France-KLM-2,5592,284
Non-controlling interests1015
Total Equity-2,5492,299
Pension provisions2,1932,253
Return obligation liability and other provisions3,7973,750
Financial debt8,3646,271
Lease debt2,8913,149
Deferred tax liabilities7142
Other non-current liabilities316222
Total non-current liabilities17,56815,787
Return obligation liability and other provisions1,007714
Current portion of financial debt1,836842
Current portion of lease debt1,018971
Trade payables1,4762,379
Deferred revenue on ticket sales3,6193,289
Frequent flyer program898848
Other current liabilities4,4343,602
Bank overdrafts34
Total current liabilities14,29112,649
Total equity and liabilities29,31030,735

Statement of Consolidated Cash Flows from 1st January until 30 June 2020
€m30 Jun 202030 Jun 2019
Net income from continuing operations-4,417-226
Amortization, depreciation and operating provisions1,5271,473
Financial provisions88108
Loss (gain) on disposals of tangible and intangible assets-36-31
Loss (gain)on disposals of subsidiaries and associates0-2
Derivatives – non monetary result22424
Unrealized foreign exchange gains and losses, net7456
Impairment6390
Other non-monetary items28264
Share of (profits) losses of associates29-8
Deferred taxes24434
Financial Capacity-1,3461,492
(Increase) / decrease in inventories59-73
(Increase) / decrease in trade receivables703-371
Increase / (decrease) in trade payables-87524
Increase / (decrease) in advanced ticket sales3781,266
Change in other receivables and payables278-55
Change in working capital requirements543791
Net cash flow from operating activities-8032,283
Purchase of property, plant and equipment and intangible assets-1,284-1,507
Proceeds on disposal of property, plant and equipment and intangible assets17276
Proceeds on disposal of subsidiaries, of shares in non-controlled entities3578
Acquisition of subsidiaries, of shares in non-controlled entities-10
Dividends received07
Decrease (increase) in net investments, more than 3 months-320
Net cash flow used in investing activities-759-1,396
Increase of equity due to new convertible bond054
Perpetual (including premium)00
Issuance of debt5,014762
Repayment on financial debt-1,993-338
Payments on lease debt-412-502
Decrease (increase ) in loans, net52-14
Dividends and coupons on perpetual paid0-1
Net cash flow from financing activities2,661-39
Effect of exchange rate on cash and cash equivalents and bank overdrafts-17-13
Change in cash and cash equivalents and bank overdrafts1,082835
Cash and cash equivalents and bank overdrafts at beginning of period3,7113,580
Cash and cash equivalents and bank overdrafts at end of period4,7934,415
Change in treasury of discontinued operations00

Key Performance Indicators
Restated net result, group share         
 Second quarterHalf year
In million euros2020201920202019
Net income/(loss), Group share-2,61297-4,413-227
Unrealized foreign exchange gains and losses, net-68-207456
Change in fair value of financial assets and liabilities (derivatives)-2085224-20
Non-current income and expenses784258307
Tax impact on gross adjustments net result-140-3-317-13
Restated net income/(loss), group part-2,244104-3,602-197
Coupons on perpetual-4-4-9-8
Restated net income/(loss), group share including coupons on perpetual (used to calculate earnings per share)-2,248100-3,611-205
Restated net income/(loss) per share (in €)-5.260.23-8.45-0.48
Return on capital employed (ROCE)1
In million euros30 Jun 202031 Mar 202031 Dec 201930 Sep 201930 Jun 201931
 Mar 2019
31 Dec 201830
Sep 2018
Goodwill and intangible assets1,5001,5641,5221,4811,4651,4851,4111,391
Flight equipment10,91911,46511,33410,90510,74710,45610,30810,401
Other property, plant and equipment1,5511,5791,5801,5541,5301,5041,5031,462
Right of use assets4,9385,1195,1735,2125,4705,4535,6645,596
Investments in equity associates267299307310305306311299
Financial assets excluding marketable securities and financial deposits133142140131125127125116
Provisions, excluding pension, cargo litigation and restructuring-4,130-4,190-4,058-4,105-3,888-3,907-3,760-3,676
WCR, excluding market value of derivatives-6,779-6,650-6,310-6,285-6,957-6,938-6,133-5,851
Capital employed8,3999,3289,6889,2038,7978,4869,4299,738
Average capital employed (A)9,1559,113
Adjusted results from current operations-1,3641,278
- Dividends received-1-2
- Share of profits (losses) of associates-1523
- Normative income tax447-360
Adjusted result from current operations after tax (B)-933939
ROCE, trailing 12 months (B/A)-10.2%10.3%

Net debt
 Balance sheet at
€m30 Jun 202031 Dec 2019
Financial debt9,9786,886
Lease debt3,8224,029
Currency hedge on financial debt-44
Accrued interest-56-62
Gross financial debt (A)13,74010,857
Cash and cash equivalents4,7963,715
Marketable securities110111
Cash securities309300
Deposits (bonds)552585
Bank overdrafts-3-4
Others33
Net cash (B)5,7674,710
Net debt (A) – (B)7,9736,147
Adjusted operating free cash flow
 Second quarterHalf year
€m2020201920202019
Net cash flow from operating activities, continued operations-1,0851,094-8032,283
Investment in property, plant, equipment and intangible assets-415-770-1,284-1,507
Proceeds on disposal of property, plant, equipment and intangible assets1613517276
Operating free cash flow-1,339359-1,915852
Payments on lease debt-162-251-412-502
Adjusted operating free cash flow-1,501108-2,327350
Operating cash burn
 

 
Second QuarterFirst Half
 2020201920202019
EBITDA-7801,167-8401,610
Provisions (CO2 and other)-39-16-33-6
Correction of spare parts inventory-1002
Addition to pension provisions7767154133
Reversal to pension provisions (cash-out)-47-49-95-96
Payment linked with shares0-1-20
Sales of tangible and intangible assets (excluding aeronauticals)43404143
Income from operation activities - cash impact-7471,208-7751,686
Restructuring costs-6-6-15-11
Other non-current income and expenses0-2-10
Cost of financial debt-105-108-200-212
Financial income07214
Realized foreign exchanges gain/loss62-115
Termination of trading hedges - cash-3100-3220
Current income tax-35-10-3
Other financial charges & expenses - cash-3-2-26-4
Other elements1717
     
Financial capacity-1,1661,104-1,3461,492
Unit cost: net cost per ASK
 Second quarterHalf year
 2020201920202019
Revenues (in €m)1,1827,0216,20112,963
Income/(loss) from current operations (in €m) -/-1,553-4232,368-137
Total operating expense (in €m)2,7356,5988,56812,826
Passenger network business – other revenues (in €m)-37-203-177-370
Cargo network business – other revenues (in €m)-75-80-142-153
Third-party revenues in the maintenance business (in €m)-222-527-716-1,081
Transavia - other revenues (in €m)-15-140
Third-party revenues of other businesses (in €m)-5-8-11-16
Net cost  (in €m)2,3955,7847,50811,205
Capacity produced, reported in ASK*9,04285,20776,337160,793
Net cost per ASK (in € cents per ASK)26.486.799.846.97
Gross change 290.1% 41.1%
Currency effect on net costs (in €m) 29 44
Change at constant currency 288.2% 40.6%
Capacity effect on net cost -5,216 -5,937
Fuel price effect (in €m) -66 17
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK)26.485.879.846.98
Change at constant currency and fuel price basis +351.2% +40.9%
* 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
 Second quarterHalf year
 2020Change2020Change
Revenue (in €m)558-86.9%3,574-55.0%
EBITDA (in €m)-566-1,191-634-1,480
Operating result (en m€)-1,058-1,212-1,594-1,500
Operating margin (%)-189.5%-193.1 pt-44.6%-43.4 pt
Operating cash flow before WCR and restructuring cash out (in €m)-790-1,394-916-916
Operating cash flow (before WCR and restructuring) margin-141.5%-155.6 pt-25.6%-25.6 pt

KLM Group

 
Second quarterHalf year
 2020Change2020Change
Revenue (in €m)701-75.7%2,841-45.9%
EBITDA (in €m)-212-752-200-951
Operating result (en m€)-493-763-768-991
Operating margin (%)-70.3%-79.7 pt-27.0%-31.3 pt
Operating cash flow before WCR and restructuring cash out (in €m)-358-868-373-373
Operating cash flow (before WCR and restructuring) margin-51.1%-68.8 pt-13.1%-13.1 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 June 2020
Aircraft typeAF
(incl. HOP)
KL
(incl. KLC & MP)
TransaviaOwnedFinance  leaseOperating leaseTotalIn operationChange /  31/12/19
B747-400 6 6  63-5
B777-3004314 1718225757 
B777-2002515 26 144040 
B787-9913 73122222 
B787-10 5 32 551
A380-80010  23510 -10
A350-9006  24 652
A340-3004  4  4 -4
A330-300 5   555 
A330-200158 11 122323 
Total Long-Haul112660783070178160-16
B737-900 5 2 355 
B737-800 31752910671061062
B737-700 16735152323 
A32120  11 92020 
A32044  35364443 
A31933  14 193333 
A31818  8 101818 
Total Medium-Haul115528270201592492482
ATR72-6002    22 -2
ATR72-500         
ATR42-500         
Canadair Jet 100014  14  1414 
Canadair Jet 70011  11  1110 
Embraer 1901632 9122748481
Embraer 175 17 314 1717 
Embraer 17015  10 51515 
Embraer 14515  15  15 -7
Total Regional73490622634122104-14
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2  2  22 
Total Cargo240600660
          
Total3021718221676263555518-28
SECOND QUARTER 2020 

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