In Paris today, Air France-KLM CEO Benjamin Smith, Air France-KLM CEO, along with Pieter Elbers, KLM President and CEO, Anne Rigail, Air France CEO, and Frederic Gagey, Air France-KLM CFO, will outline the group’s ambitious strategic plans along with its financial predictions for the next five years as it seeks to regain a leadership position in the European aviation world.
Included in the plans are:
- Restore a dynamic of sustainable profitability based on a new value-focused model for the group’s primary stakeholders: employees, customers, and shareholders.
- A plan built around four main strategic priorities: optimising the operational model, refocusing passenger revenue growth around the most profitable segments, developing initiatives on customer data, the Flying Blue loyalty programme, maintenance and cargo, and pragmatically analyzing consolidation opportunities. Each of these initiatives support the group's goal to remain a leader in the sector's ecological transition.
- Profit: Medium-term operating margin of 7-8%
- Cash: Medium-term positive adjusted Free Cash Flows
- Leverage: Net debt/EBITDA ratio circa 1.5x
- Shareholder returns: Prospects for returning to dividend distribution