Positive operating result at 386 million eurosNet income at 324 million euros, showing a 1.8 billion euros improvement compared to the same quarter last yearPositive adjusted operating free cash flow at 1.5 billion euros thanks to positive EBITDA and strong ticket sales. It improved by 1.3 billion euros compared to the same quarter in 2021The Group has already successfully achieved 2.8 billion euros of equity measures of the up to 4 billion announced last FebruaryAir France-KLM/Air France redeemed 1.6 billion euros of the French State perpetual bonds (including coupon). KLM fully repaid the State backed RCF and direct Dutch State loan amounting for 942 million eurosNet debt at 6.0 billion euros, down by 2.2 billion euros compared to end of 2021 thanks to a positive adjusted operating free cash flow and the rights issue completed in June 2022
Air France-KLM Group: Second quarter operating margin at 2019 level despite the steep increase of fuel cost
Second quarter | Half year | ||||||
2022 | Change | Change constant currency | 2022 | Change | Change constant currency | ||
Passengers (thousands) | 22,803 | +224.5% | 37,326 | +215.0% | |||
Capacity (ASK m) | 72,127 | +81.9% | 130,192 | +75.3% | |||
Traffic (RPK m) | 61,365 | +243.4% | 104,499 | +227.7% | |||
Passenger unit revenue per ASK (€ cts) | 7.41 | +93.6% | +89.1% | 6.51 | +91.8% | +87.9% | |
Group unit revenue per ASK (€ cts) | 8.52 | +46.1% | +42.1% | 7.73 | +41.4% | +38.0% | |
Group unit cost per ASK (€ cts) at constant fuel | 7.98 | +3.2% | -12.7% | 7.71 | -4.6% | -15.6% | |
Revenues (€m) | 6,707 | +143.9% | +138.7% | 11,152 | +127.1% | +123.8% | |
EBITDA (€m) | 931 | 1,180 | 1,186 | 1,152 | 2,029 | 2,050 | |
Operating result (€m) | 386 | 1,139 | 1,145 | 36 | 1,970 | 1,989 | |
Operating margin (%) | 5.8% | +33.1 pt | +32.8 pt | 0.3% | +39.7 pt | +39.5 pt | |
Net income - Group part (€m) | 324 | +1,813 | -228 | +2,744 | |||
Adj. operating free cash flow (€m) | 1,532 | +1,322 | 2,163 | +3,297 | |||
Net debt at end of period (€m)1 | 6,036 | -2,180 | |
Cargo: Strong yield increase mitigates traffic impact on Asia trade lanes
Second quarter | Half year | |||||
Cargo business | 2022 | Change | Change constant currency | 2022 | Change | Change constant currency |
Tons (thousands) | 236 | -13.4% | 472 | -12.7% | ||
Capacity (ATK m) | 3,341 | +27.4% | 6,315 | +18.9% | ||
Traffic (RTK m) | 1,732 | -17.2% | 3,497 | -16.1% | ||
Load factor | 51.8% | -27.9 pt | 55.4% | -23.1 pt | ||
Total Cargo revenues (€m) | 918 | +2.6% | -1.1% | 1,828 | +5.5% | +2.2% |
Scheduled cargo revenues (€m) | 801 | +0.7% | -2.8% | 1,597 | +3.5% | +0.4% |
Unit revenue per ATK (€ cts ) | 23.96 | -20.9% | -23.7% | 25.29 | -13.0% | -15.5% |
Transavia: Capacity above pre-crisis level with a load factor of 85%
Second quarter | Half year | |||
Transavia | 2022 | Change | 2022 | Change |
Passengers (thousands) | 5,247 | +346.8% | 7,828 | +412.8% |
Capacity (ASK m) | 10,430 | +221.9% | 15,924 | +274.6% |
Traffic (RPK m) | 8,886 | +358.2% | 13,154 | +421.6% |
Load factor | 85.2% | +25.3 pt | 82.6% | +23.3 pt |
Total passenger revenues (€m) | 601 | +378.0% | 850 | +422.2% |
Unit revenue per ASK (€ cts) | 5.86 | +51.0% | 5.41 | +41.2% |
Unit cost per ASK (€ cts) | 6.04 | -12.5% | 6.11 | -31.9% |
Operating result (€m) | -18 | +80 | -110 | +108 |
Income Statement
Second quarter | Half year | |||||
€m | 2022 | 2021* | Change | 2022 | 2021* | Change |
Revenues from ordinary activities | 6,707 | 2,750 | +143.9% | 11,152 | 4,910 | +127.1% |
Aircraft fuel | -1,863 | -520 | +258.3% | -2,858 | -982 | +191.0% |
Chartering costs | -93 | -78 | +19.2% | -193 | -147 | +31.3% |
Landing fees and air route charges | -436 | -245 | +78.0% | -784 | -460 | +70.4% |
Catering | -176 | -68 | +158.8% | -319 | -126 | +153.2% |
Handling charges and other operating costs | -401 | -211 | +90.0% | -722 | -402 | +79.6% |
Aircraft maintenance costs | -603 | -447 | +34.9% | -1,118 | -792 | +41.2% |
Commercial and distribution costs | -230 | -72 | +219.4% | -384 | -131 | +193.1% |
Other external expenses | -368 | -254 | +44.9% | -702 | -552 | +27.2% |
Salaries and related costs | -1,820 | -1,238 | +47.0% | -3,343 | -2,406 | +38.9% |
Taxes other than income taxes | -34 | -29 | +17.2% | -80 | -69 | +15.9% |
Other income and expenses | 248 | 163 | +52.1% | 503 | 280 | +79.6% |
EBITDA | 931 | -249 | nm | 1,152 | -877 | nm |
Amortization, depreciation and provisions | -545 | -504 | +8.1% | -1,116 | -1,057 | +5.6% |
Income from current operations | 386 | -753 | nm | 36 | -1,934 | nm |
Sales of aircraft equipment | 39 | -11 | nm | 39 | -14 | nm |
Other non-current income and expenses | -10 | -849 | -98.8% | -15 | -853 | -98% |
Income from operating activities | 415 | -1,613 | nm | 60 | -2,801 | nm |
Cost of financial debt | -136 | -149 | -8.7% | -277 | -339 | -18.3% |
Income from cash and cash equivalent | 1 | 2 | -50.0% | 0 | 3 | -100.0% |
Net cost of financial debt | -135 | -147 | -8.2% | -277 | -336 | -17.6% |
Other financial income and expenses | -238 | 5 | nm | -286 | -85 | +236.5% |
Income before tax | 42 | -1,755 | nm | -503 | -3,222 | -84.4% |
Income taxes | 283 | 272 | +4.0% | 278 | 263 | +5.7% |
Net income of consolidated companies | 325 | -1,483 | nm | -225 | -2,959 | -92.4% |
Share of profits (losses) of associates | 0 | -9 | -100.0% | -1 | -16 | -93.8% |
Net income for the period | 325 | -1,492 | nm | -226 | -2,975 | -92.4% |
Non-controlling interests | 1 | -3 | nm | 2 | -3 | nm |
Net income for the period – Group part | 324 | -1,489 | nm | -228 | -2,972 | -92.3% |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Consolidated Balance Sheet
Assets | 30 Jun 2022 | 31 Dec 2021 |
€m | ||
Goodwill | 223 | 222 |
Intangible assets | 1,213 | 1,235 |
Flight equipment | 10,521 | 10,466 |
Other property, plant and equipment | 1,358 | 1,402 |
Right-of-use assets | 5,439 | 5,148 |
Investments in equity associates | 108 | 109 |
Other non-current financial assets | 1,064 | 951 |
Non-current derivatives financial assets | 304 | 143 |
Deferred tax assets | 494 | 278 |
Total non-current assets | 20,724 | 19,954 |
Assets held for sale | 78 | 74 |
Other current financial assets | 589 | 484 |
Current derivatives financial assets | 954 | 469 |
Inventories | 654 | 567 |
Trade receivables | 2,045 | 1,511 |
Other current assets | 1,133 | 966 |
Cash and cash equivalents | 8,173 | 6,658 |
Total current assets | 13,626 | 10,729 |
Total assets | 34,350 | 30,683 |
Liabilities and equity | 30 Jun 2022 | 31 Dec 2021 |
In million euros | ||
Issued capital | 2,571 | 643 |
Additional paid-in capital | 5,217 | 4,949 |
Treasury shares | -25 | -25 |
Perpetual bonds | 1,389 | 3,151 |
Reserves and retained earnings | -12,349 | -12,542 |
Equity attributable to equity holders of Air France-KLM | -3,197 | -3,824 |
Non-controlling interests | 10 | 8 |
Total Equity | -3,187 | -3,816 |
Pension provisions | 1,558 | 1,939 |
Non-current return obligation liability and other provisions | 4,272 | 4,055 |
Non-current financial liabilities | 10,568 | 11,274 |
Non-current lease debt | 3,335 | 2,924 |
Non-current derivatives financial liabilities | 1 | 25 |
Deferred tax liabilities | 3 | 1 |
Other non-current liabilities | 2,465 | 2,555 |
Total non-current liabilities | 22,202 | 22,773 |
Current return obligation liability and other provisions | 838 | 885 |
Current financial liabilities | 1,079 | 1,215 |
Current lease debt | 851 | 825 |
Current derivatives financial liabilities | 42 | 46 |
Trade payables | 2,821 | 1,850 |
Deferred revenue on ticket sales | 4,938 | 2,644 |
Frequent flyer programs | 868 | 888 |
Other current liabilities | 3,896 | 3,369 |
Bank overdrafts | 2 | 4 |
Total current liabilities | 15,335 | 11,726 |
Total equity and liabilities | 34,350 | 30,683 |
Statement of Consolidated Cash Flows from 1st January until 30 June 2022
€m | 30 Jun 2022 | 30 Jun 2021* |
Net income | -226 | -2,975 |
Amortization, depreciation and operating provisions | 1,116 | 1,057 |
Financial provisions | 69 | 58 |
Loss (gain) on disposals of tangible and intangible assets | -40 | 14 |
Loss (gain) on disposals of subsidiaries and associates | - | -26 |
Derivatives – non monetary result | -20 | -29 |
Unrealized foreign exchange gains and losses, net | 240 | 86 |
Impairment | 17 | 15 |
Other non-monetary items | -90 | 762 |
Share of (profits) losses of associates | 1 | 16 |
Deferred taxes | -282 | -265 |
Financial Capacity | 785 | -1,287 |
(Increase) / decrease in inventories | -79 | 12 |
(Increase) / decrease in trade receivables | -437 | -268 |
Increase / (decrease) in trade payables | 971 | 138 |
Increase / (decrease) in advanced ticket sales | 2,276 | 489 |
Change in other receivables and payables | 104 | 749 |
Change in working capital requirement | 2,835 | 1,120 |
Net cash flow from operating activities | 3,620 | -167 |
Acquisition of subsidiaries, of shares in non-controlled entities | - | 2 |
Purchase of property, plant and equipment and intangible assets | -1,491 | -1,099 |
Proceeds on disposal of subsidiaries, of shares in non-controlled entities | - | 71 |
Proceeds on disposal of property, plant and equipment and intangible assets | 476 | 565 |
Decrease (increase) in net investments, more than 3 months | 6 | 85 |
Dividends received | 1 | - |
Net cash flow used in investing activities | -1,008 | -376 |
Increase of equity | 1,551 | 1,024 |
Perpetual | -993 | - |
Coupons on perpetual | -229 | - |
Issuance of debt | 552 | 690 |
Repayment on debt | -1,187 | -750 |
Payments on debt on lease with bargain option | -228 | -385 |
Payments on lease debt | -442 | -433 |
New loans | -175 | -37 |
Repayment on loans | 16 | 44 |
Net cash flow from financing activities | -1,135 | 153 |
Effect of exchange rate on cash and cash equivalents and bank overdrafts (net of cash acquired or sold) | 40 | 1 |
Change in cash and cash equivalents and bank overdrafts | 1,517 | -389 |
Cash and cash equivalents and bank overdrafts at beginning of period | 6,654 | 6,422 |
Cash and cash equivalents and bank overdrafts at end of period | 8,171 | 6,033 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Return on capital employed (ROCE)
In million euros | 30 Jun 2022 | 31 Mar 2022 | 31 Dec 2021 | 30* Sep 2021 | 30* Jun 2021 | 31* Mar 2021 | 31* Dec 2020 | 30* Sep 2020 |
Goodwill and intangible assets | 1,437 | 1,473 | 1,457 | 1,456 | 1,464 | 1,479 | 1,445 | 1,470 |
Flight equipment | 10,521 | 10,537 | 10,466 | 10,478 | 10,645 | 10,800 | 11,031 | 11,009 |
Other property, plant and equipment | 1,358 | 1,378 | 1,402 | 1,418 | 1,453 | 1,476 | 1,548 | 1,535 |
Right of use assets | 5,393 | 5,205 | 5,148 | 5,061 | 5,033 | 4,795 | 4,678 | 4,789 |
Investments in equity associates | 108 | 107 | 109 | 172 | 166 | 223 | 230 | 224 |
Financial assets excluding marketable securities and financial deposits | 162 | 158 | 157 | 147 | 147 | 146 | 146 | 135 |
Provisions, excluding pension, cargo litigation and restructuring | -4,471 | -4,239 | -4,173 | -4,180 | -4,033 | -4,083 | -3,922 | -4,002 |
WCR, excluding market value of derivatives | -11,156 | -9,589 | -8,262 | -7,995 | -7,745 | -6,410 | -6,505 | -6,894 |
Capital employed | 3,352 | 5,030 | 6,304 | 6,557 | 7,130 | 8,426 | 8,651 | 8,266 |
Average capital employed (A) | 5,311 | 8,118 | ||||||
Adjusted results from current operations | 344 | -4,119 | ||||||
- Dividends received | 0 | 0 | ||||||
- Share of profits (losses) of associates | -12 | -45 | ||||||
- Normative income tax | -80 | 1,211 | ||||||
Adjusted result from current operations after tax (B) | 252 | -2,953 | ||||||
ROCE, trailing 12 months (B/A) | 4.7% | -36.4% |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Net debt
Balance sheet at | ||
€m | 31 Jun 2022 | 31 Dec 2021 |
Current and non-current financial liabilities | 11,647 | 12,489 |
Current and non-current lease debt | 4,186 | 3,749 |
Accrued interest | -122 | -128 |
Deposits related to financial liabilities | -96 | -99 |
Deposits related to lease debt | -96 | -85 |
Derivatives impact on debt | -60 | -14 |
Gross financial debt (A) | 15,459 | 15,912 |
Cash and cash equivalents | 8,173 | 6,658 |
Marketable securities | 85 | 189 |
Cash secured | 424 | 324 |
Triple A bonds | 743 | 529 |
Bank overdrafts | -2 | -4 |
Net cash (B) | 9,423 | 7,696 |
Net debt (A) – (B) | 6,036 | 8,216 |
Adjusted operating free cash flow
Second quarter | Half year | |||
€m | 2022 | 2021 | 2022 | 2021 |
Net cash flow from operating activities | 2,239 | 714 | 3,620 | -167 |
Investment in property, plant, equipment and intangible assets | -787 | -632 | -1,491 | -1,099 |
Proceeds on disposal of property, plant, equipment and intangible assets | 305 | 345 | 476 | 565 |
Operating free cash flow | 1,757 | 427 | 2,605 | -701 |
Payments on lease debt | -225 | -217 | -442 | -433 |
Adjusted operating free cash flow | 1,532 | 210 | 2,163 | -1,134 |
Bridge from EBITDA to Financial capacity
| Second quarter | First Half | ||
2022 | 2021* | 2022 | 2021* | |
EBITDA | 931 | -249 | 1,152 | -877 |
Provisions (CO2 and other) | -27 | -70 | -16 | -28 |
Correction of spare parts inventory | 1 | 2 | 3 | 3 |
Addition to pension provisions | 33 | 60 | 65 | 137 |
Reversal to pension provisions (cash-out) | -19 | -40 | -32 | -83 |
Sales of tangible and intangible assets (excluding aeronauticals) | 31 | 70 | 31 | 31 |
Income from operation activities - cash impact | 950 | -227 | 1,203 | -817 |
Restructuring costs | -68 | -80 | -125 | -125 |
Other non-current income and expenses | - | -63 | -2 | -63 |
Cost of financial debt | -139 | -134 | -283 | -302 |
Financial income | -3 | -3 | -8 | -7 |
Realized foreign exchanges gain/loss | -11 | 20 | 3 | 47 |
Termination of trading hedges - cash | - | -1 | - | -8 |
Settlements of forwards derivates - cash | - | -2 | - | -2 |
Current income tax | - | 1 | -4 | -2 |
Other financial charges & expenses - cash | - | -8 | - | -8 |
Other elements | - | - | 1 | - |
Financial capacity | 729 | -497 | 785 | -1,287 |
* Restated figures include the change in accounting principles for pensions (interpretation of IAS19)
Unit cost: net cost per ASK
Second quarter | Half year | |||
2022 | 2021* | 2022 | 2021* | |
Revenues (in €m) | 6,707 | 2,750 | 11,152 | 4,910 |
Income/(loss) from current operations (in €m) -/- | -386 | 753 | -36 | 1,934 |
Total operating expense (in €m) | 6,321 | 3,503 | 11,116 | 6,844 |
Passenger network business – other revenues (in €m) | -103 | -77 | -208 | -131 |
Cargo network business – other revenues (in €m) | -117 | -99 | -231 | -190 |
Third-party revenues in the maintenance business (in €m) | -345 | -255 | -642 | -514 |
Transavia - other revenues (in €m) | 10 | - | 12 | - |
Third-party revenues of other businesses (in €m) | -8 | -6 | -13 | -13 |
Net cost (in €m) | 5,758 | 3,066 | 10,034 | 5,997 |
Capacity produced, reported in ASK* | 72,127 | 39,657 | 130,192 | 74,254 |
Net cost per ASK (in € cents per ASK) | 7.98 | 7.73 | 7.71 | 8.08 |
Gross change | 3.2% | -4.6% | ||
Currency effect on net costs (in €m) | -70 | -118 | ||
Change at constant currency | 0.9% | -6.4% | ||
Fuel price effect (in €m) | 492 | 668 | ||
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK) | 7.98 | 9.15 | 7.71 | 9.14 |
Change at constant currency and fuel price basis | -12.7% | -15.6% |
* 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
Second quarter | Half year | |||
2022 | Change | 2022 | Change | |
Revenue (in €m) | 4,062 | +146.7% | 6,743 | +125.8% |
EBITDA (in €m) | 444 | +726 | 422 | +1,217 |
Operating result (in €m) | 133 | +700 | -230 | +1,179 |
Operating margin (%) | 3.3% | +37.8 pt | -3.4% | +43.8 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | 343 | +741 | 255 | +1,274 |
Operating cash flow (before WCR and restructuring) margin | 8.4% | +32.6 pt | 3.8% | +37.9 pt |
KLM Group
Second quarter | Half year | |||
2022 | Change | 2022 | Change | |
Revenue (in €m) | 2,782 | +130.5% | 4,685 | +119.2% |
EBITDA (in €m) | 495 | +462 | 729 | +807 |
Operating result (in €m) | 262 | +447 | 266 | +787 |
Operating margin (%) | 9.4% | +24.8 pt | 5.7% | +30.1 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | 469 | +525 | 667 | +836 |
Operating cash flow (before WCR and restructuring) margin | 16.9% | +21.5 pt | 14.2% | +22.2 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 2022
Aircraft type | AF (incl. HOP) | KL (incl. KLC & MP) | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 31/12/21 |
B777-300 | 43 | 16 | 19 | 16 | 24 | 59 | 59 | ||
B777-200 | 19 | 15 | 27 | 7 | 34 | 33 | -3 | ||
B787-9 | 10 | 13 | 4 | 7 | 12 | 23 | 23 | ||
B787-10 | 6 | 2 | 4 | 6 | 5 | ||||
A380-800 | 8 | 4 | 1 | 3 | 8 | ||||
A350-900 | 18 | 3 | 7 | 8 | 18 | 18 | 6 | ||
A330-300 | 5 | 5 | 5 | 5 | 1 | ||||
A330-200 | 15 | 6 | 11 | 10 | 21 | 21 | |||
Total Long-Haul | 113 | 61 | 0 | 70 | 35 | 69 | 174 | 164 | 4 |
B737-900 | 5 | 5 | 5 | 5 | |||||
B737-800 | 31 | 95 | 33 | 8 | 85 | 126 | 126 | 10 | |
B737-700 | 10 | 4 | 7 | 7 | 14 | 14 | |||
A321 | 19 | 11 | 8 | 19 | 19 | ||||
A320 | 41 | 4 | 4 | 33 | 41 | 40 | -2 | ||
A319 | 25 | 12 | 13 | 25 | 24 | -4 | |||
A318 | 12 | 6 | 6 | 12 | 11 | -1 | |||
A220-300 | 10 | 7 | 3 | 10 | 9 | 3 | |||
Total Medium-Haul | 107 | 46 | 99 | 85 | 12 | 155 | 252 | 248 | 6 |
Canadair Jet 1000 | 9 | 9 | 9 | 6 | -5 | ||||
Canadair Jet 700 | |||||||||
Embraer 195 E2 | 12 | 12 | 12 | 12 | 5 | ||||
Embraer 190 | 19 | 30 | 16 | 5 | 28 | 49 | 49 | 2 | |
Embraer 175 | 17 | 3 | 14 | 17 | 17 | ||||
Embraer 170 | 13 | 10 | 3 | 13 | 13 | -2 | |||
Embraer 145 | 2 | 2 | 2 | ||||||
Total Regional | 43 | 59 | 0 | 40 | 19 | 43 | 102 | 97 | 0 |
B747-400ERF | 3 | 3 | 3 | 3 | |||||
B747-400BCF | 1 | 1 | 1 | 1 | |||||
B777-F | 2 | 2 | 2 | 2 | |||||
Total Cargo | 2 | 4 | 0 | 4 | 0 | 2 | 6 | 6 | 0 |
Total | 265 | 170 | 99 | 199 | 66 | 269 | 534 | 515 | 10 |