Air France-KLM results at 30 june 2019
31 July 2019
RESULTS AS AT 30 JUNE
2019Increased operating result and
improved passenger unit revenue |
SECOND QUARTER 2019
- Passenger growth +5.1% and load factor +1.3 point.
- Passenger unit revenue up by 0.8%.
- Unit costs decrease by -2.3% at constant currency and
fuel.
- Operating result at 400 million euros, up 54 millions euros
compared to the second quarter 2018 hit by Air France strikes1, and
reflecting unit cost improvement partly offset by an increased fuel
bill.
- Further reduction in Group net debt, down 466 million euros to
5.7 billion euros and Net debt/EBITDA ratio at 1.4x, an improvement
of -0.1pt compared to 31 December 2018.
OUTLOOK 2019
- Based on the current data for the Passenger network:
- Long-haul forward booking load factors from August to December
are on average ahead compared to last year.
- Network passenger unit revenue at constant currency expected to
be stable versus last year for the third quarter 2019.
- Full year guidance update:
- The Group will pursue initiatives to reduce unit costs, with a
targeted 2019 reduction of between -1% and 0% at constant currency
and fuel price.
- The 2019 fuel bill is expected to increase by 550 million euros
compared to 2018 to 5.5 billion euros, based on the forward curve
of 26 July 2019.
- Net debt/ EBITDA ratio below 1.5x.
Benjamin Smith, CEO of Air France-KLM Group,
said: “In a challenging environment, Air France-KLM Group posted a
robust second quarter. The slight increase in passenger unit
revenue that we had anticipated, together with continued execution
in unit cost reduction, enabled us to more than offset rising fuel
costs. These elements, combined with satisfactory long-haul forward
booking trends lead us to confirm our guidance for 2019. At the
same time, we continue to implement our strategic vision focused on
reducing costs and making our Group more robust in the very
competitive marketplace in Europe. We have also made key decisions
on the renewal of our fleet to transition to cleaner aircraft in
order to support a more environmentally responsible operation,
including the order of sixty Airbus A220s for short- and
medium-haul and the accelerated phasing out of ten Airbus A380 to
be replaced by more modern fuel efficient aircraft.”
Air France-KLM Group |
Second Quarter |
First half |
2019 |
Change1 |
2019 |
Change1 |
Passengers (thousands) |
27,800 |
+5.1% |
50,474 |
+4.2% |
Passenger Unit revenue per ASK2 (€ cts) |
6.75 |
+0.8% |
6.48 |
-0.4% |
Operating result (€m) |
400 |
+54 |
97 |
-131 |
Net income – Group part (€m) |
80 |
-30 |
-240 |
-81 |
Adj. operating free cash flow (€m) |
110 |
+111 |
351 |
+210 |
Net debt at end of period (€m) |
|
|
5,698 |
-466 |
Second quarter 2019 business review
Network: Solid revenue growth and
increase in operating result
Network |
Second Quarter |
First Half |
2019 |
Change |
Change constant currency |
2019 |
Change |
Change constant currency |
Capacity (ASK m) |
75,680 |
+3.9% |
|
145,440 |
+3.2% |
|
Total revenues (€m) |
6,016 |
+5.6% |
+3.9% |
11,191 |
+3.8% |
+2.6% |
Scheduled revenues (€m) |
5,708 |
+5.8% |
+4.0% |
10,601 |
+3.6% |
+2.3% |
Operating result (€m) |
291 |
+55 |
+77 |
12 |
-138 |
-68 |
Second quarter 2019 combined Passenger and Cargo
revenues increased by 3.9% at constant currency to 6.0 billion
euros, for capacity growth of 3.9%. The operating result amounted
to 291 million euros, a 77 million euro increase at constant
currency compared to last year, with the non-fuel unit cost
improvement partly offset by a higher fuel bill.
Passenger network: Long-haul driving the
improvement of unit revenue as anticipated
|
Second Quarter |
First Half |
Passenger network |
2019 |
Change |
Change constant currency |
2019 |
Change |
Change constant currency |
Passengers (thousands) |
22,906 |
+4.8% |
|
42,651 |
+3.7% |
|
Capacity (ASK m) |
75,680 |
+3.9% |
|
145,439 |
+3.2% |
|
Traffic (RPK m) |
67,020 |
+5.7% |
|
127,241 |
+3.8% |
|
Load factor |
88.6% |
+1.5
pt |
|
87.5% |
+0.6
pt |
|
Total passenger revenues (€m) |
5,482 |
+6.4% |
+4.8% |
10,110 |
+4.2% |
+3.2% |
Scheduled passenger revenues (€m) |
5,254 |
+6.6% |
+4.8% |
9,674 |
+4.2% |
+2.9% |
Unit revenue per ASK (€ cts) |
6.94 |
+2.6% |
+0.9% |
6.65 |
+1.0% |
-0.2% |
Second quarter 2019 capacity increased by 3.9%,
mainly driven by the South American, North Atlantic and Asian
networks, with respective growth of 7.8%, 6.7% and 4.0%. Taking
into account a positive calendar effect from the Easter shift, the
passenger network posted a positive unit revenue of +0.9% at
constant currency.
The industry capacity growth has been lower in
North America, Caribbean & Indian Ocean and Middle East network
in comparison to previous year. The long-haul network generated
positive load-factors and yields compared to last year in all
networks except in the Latin American network:
- The North American network posted positive unit revenue at
+2.6% compared to last year, with the strength driven in particular
by US points of sale.
- The Asian network unit revenue was up 3.9% in the second
quarter, driven by the continuing strength of the Japanese network,
partly offset by some competitive pressure on the Chinese
network.
- The Caribbean & Indian Ocean network posted a strong result
with the unit revenue +4.7%, driven by leisure demand.
- The Africa & Middle East network saw a substantial unit
revenue improvement of 8.7%, underpinned by positive results from
the West African networks and network rationalizations in the
Middle East.
- The unit revenue pressure in the Latin American network remains
ongoing for the time-being due to the current economic context in
Argentina and Brazil.
The medium-haul network showed a mixed picture
with a positive performance for the medium-haul hubs with the unit
revenue +0.2% and, as anticipated, pressure in the medium-haul
point-to-point network with unit revenue down
-9.1%.
Cargo network: Unit revenue impacted by
a challenging airfreight market
|
Second Quarter |
First Half |
Cargo business |
2019 |
Change |
Change constant currency |
2019 |
Change |
Change constant currency |
Tons (thousands) |
279 |
+1.5% |
|
549 |
+0.7% |
|
Capacity (ATK m) |
3,630 |
+2.8% |
|
7,092 |
+2.1% |
|
Traffic (RTK m) |
2,122 |
+1.2% |
|
4,168 |
+0.9% |
|
Load factor |
58.5% |
-0.9
pt |
|
58.8% |
-0.7
pt |
|
Total Cargo revenues (€m) |
534 |
-1.7% |
-4.1% |
1,081 |
-0.5% |
-2.7% |
Scheduled cargo revenues (€m) |
454 |
-2.8% |
-5.2% |
927 |
-1.7% |
-3.9% |
Unit revenue per ATK (€ cts ) |
12.54 |
-5.1% |
-7.5% |
13.09 |
-3.6% |
-5.7% |
Negative market dynamics and continued higher
industry capacity put pressure on the unit revenue during the
second quarter 2019. After two strong years, renewed overcapacity
in North America and Asia is putting pressure on freight rates,
resulting in unit revenue down -7.5% at constant currency. The
Group’s Cargo strategy is focused on maintaining and increasing
load factors where possible and taking a pro-active approach to new
opportunities.
Transavia: High capacity growth and
positive unit revenue
|
Second Quarter |
First Half |
Transavia |
2019 |
Change |
2019 |
Change |
Passengers (thousands) |
4,894 |
+6.7% |
7,823 |
+7.0% |
Capacity (ASK m) |
9,527 |
+9.2% |
15,353 |
+10.0% |
Traffic (RPK m) |
8,754 |
+9.1% |
14,122 |
+10.1% |
Load factor |
91.9% |
-0.1 pt |
92.0% |
+0.0 pt |
Total passenger revenues (€m) |
500 |
+10.4% |
748 |
+8.7% |
Unit revenue per ASK (€ cts) |
5.24 |
+1.3% |
4.83 |
-0.4% |
Unit cost per ASK (€ cts) |
4.70 |
+5.1% |
4.95 |
+2.6% |
Operating result (€m) |
52 |
-9 |
-19 |
-22 |
Strong capacity growth of 9.2% in the second
quarter 2019. The unit revenue was up by 1.3% compared to last
year, supported by the Easter shift, strong demand throughout the
network and a good ancillary revenue performance.The second quarter
2019 operating margin stands at a level of 10.4%, with an absolute
operating result of 52 million euros, 9 million euros down compared
to last year explained by fuel price and currency headwinds.
Maintenance: Strong third-party revenue growth and
margin improvement
|
Second Quarter |
First Half |
Maintenance |
2019 |
Change |
Change constant currency |
2019 |
Change |
Change constant currency |
Total revenues (€m) |
1,120 |
+11.2% |
|
2,290 |
+10.0% |
|
Third-party revenues (€m) |
527 |
+11.9% |
+5.0% |
1,081 |
+14.9% |
+7.6% |
Operating result (€m) |
55 |
+9 |
+1 |
102 |
+30 |
+18 |
Operating margin (%) |
4.9% |
+0.3 pt |
-0.2 pt |
4.5% |
+1.0 pt |
+0.6 pt |
Maintenance revenues increased compared to last
year with third-party revenues up by 11.9% and 5.0% at constant
currency, a continuation of the growth trend underpinned by the
inflow of new contracts. The Maintenance order book stood at 11.6
billion dollars at 30 June 2019, an increase of 0.2 billion dollars
compared to 31 December 2018. The operating margin expressed as a
percentage of total revenues stood at 4.9%, an increase of 0.3
point primarily driven by the components activity.
Air France-KLM Group: Operating result
at €400 million with positive passenger unit revenue and unit cost
improvement
|
Second Quarter |
First half |
|
2019 |
Change |
Change constant currency |
2019 |
Change |
Change constant currency |
Capacity (ASK m) |
85,207 |
+4.5% |
|
160,793 |
+3.8% |
|
Traffic (RPK m) |
75,774 |
+6.1% |
|
141,363 |
+4.4% |
|
Passenger unit revenue per ASK (€ cts) |
6.75 |
+2.4% |
+0.8% |
6.48 |
+0.8% |
-0.4% |
Group unit revenue per ASK (€ cts) |
7.28 |
+1.6% |
+0.0% |
7.05 |
+0.2% |
-1.0% |
Group unit cost per ASK (€ cts) at constant fuel |
6.82 |
-0.3% |
-2.3% |
6.99 |
+0.4% |
-1.4% |
Revenues (€m) |
7,050 |
+6.4% |
+4.5% |
13,036 |
+4.9% |
+3.3% |
EBITDA (€m) |
1,147 |
+98 |
+114 |
1,571 |
-99 |
-42 |
Operating result (€m) |
400 |
+54 |
+72 |
97 |
-131 |
-69 |
Operating margin (%) |
5.7% |
+0.5 pt |
+0.8 pt |
0.7% |
-1.1 pt |
-0.6 pt |
Net income - Group part (€m) |
80 |
-30 |
|
-240 |
-81 |
|
In the second quarter 2019, the Air France-KLM
Group posted an operating result of 400 million euros, up 54
million euros compared to last year, which was impacted by the Air
France strike for 260 million euros.
Compared to last year, the Group’s unit revenue
was stable, the positive passenger unit revenue impact of 53
million euros being offset by a -54 million euro negative impact
from Cargo.
The fuel bill including hedging amounted to
1,404 million euros for the second quarter 2019, up 220 million
euros. This increase is explained mainly by a lower hedge gain for
the second quarter 2019 (gain of 56 million euros compared to 212
million euro last year), and a negative currency effect on the fuel
bill of 89 million euros due to a stronger dollar.
Currencies had a positive 123 million euro
impact on revenues and a negative 52 million euro effect on costs
(ex-fuel) including currency hedging. Together with the 89 million
euro fuel currency effect, the net impact of currencies amounted to
a negative 18 million euros for the second quarter 2019.
Unit cost down confirming the full year
guidance On a constant currency and fuel price basis, unit
costs were down -2.3% in the second quarter 2019. This decrease is
supported by the successful execution of cost focus measures in Air
France and the high basis of comparaison last year due to the
strikes at Air France.However this was partly offset by higher unit
costs at KLM due to the implementation of last year’s labor wage
agreements.
Group net employee costs were up 4.6% in the
quarter compared to last year, explained by additional hires in
response to the capacity growth and the impact of wage agreement
implementation for Air France and KLM staff. The average number of
FTEs in the second quarter 2019 increased by 1,650 compared to last
year, including +700 Pilots and +650 Cabin Crew. However,
productivity measured in ASK per FTE increased by 3.1% in the
second quarter 2019. Net debt down, leverage ratio improved
slightly further, on track for full year guidance of below
1.5x
|
Second Quarter |
First Half |
In € million |
2019 |
Change |
2019 |
Change |
Cash flow before change in WCR and Voluntary Departure Plans,
continuing operations (€m) |
1,096 |
+175 |
1,465 |
+31 |
Cash out related to Voluntary Departure Plans (€m) |
-6 |
+92 |
-11 |
+110 |
Change in Working Capital Requirement (WCR) (€m) |
-19 |
-45 |
787 |
-46 |
Net cash flow from operating activities
(€m) |
1,071 |
+222 |
2,241 |
+95 |
Net investments before sale & lease-back* (€m) |
-711 |
-136 |
-1,389 |
+99 |
Operating free cash flow
(€m) |
360 |
+86 |
852 |
+194 |
Reduction of lease debt |
-250 |
+25 |
-501 |
+16 |
Adjusted operating free cash flow ** |
110 |
+111 |
351 |
+210 |
* 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 with deduction of the repayment of lease
debt.
Positive adjusted operating free cash
flowThe Group generated positive adjusted operating free
cash flow of 110 million euros, an increase of 111 million euros
compared to last year, mainly explained by lower capex in the
second quarter 2019 due to a year-on-year shift in the
investment-timing pattern.
Leverage on track with full year guidance of
<1.5x
In € million |
30 Jun 2019 |
31 Dec 2018 |
Net debt |
5,698 |
6,164 |
EBITDA
trailing 12 months |
4,118 |
4,217 |
Net debt/EBITDA trailing 12
months |
1.4 x |
1.5 x |
The Group reduced its net debt to 5,698 million
euros at 30 June 2019 versus 6,164 million euros at 31 December
2018, this 466 million euro reduction being driven by operating
free cash flow generation and the repayment of lease debt.The net
debt/EBITDA ratio stood at 1.4x at 30 June 2019, a decrease of 0.1
point compared to 31 December 2018, explained by the reduction in
net debt.
Air France improvement explained by last
year strike, KLM impacted by fuel
|
Second Quarter |
First Half |
|
2019 |
Change |
2019 |
Change |
Air France Group Operating result (€m) |
143 |
+130 |
-113 |
+51 |
Operating margin (%) |
3.3% |
+3.0 pt |
-1.4% |
+0.8 pt |
KLM Group Operating result (€m) |
258 |
-70 |
202 |
-186 |
Operating margin (%) |
8.9% |
-2.8 pt |
3.8% |
-3.7 pt |
Outlook
The global economic and geopolitical context
remains uncertain and the Group operates in a highly competitive
marketplace. Based on the current data for the
Passenger network:
- Long-haul forward booking load factors from August 2019 to
December 2019 are on average ahead compared to last year.
- Network passenger unit revenue at constant currency is expected
to be stable compared to last year for the third quarter 2019.
Capacity growth update:
- With the growth of Transavia France adjusted slightly
downwards, Transavia is expected to grow at a sustainable pace of
7% to 9% for full year 2019.
- Passenger network plan remains unchanged to moderately grow
capacity by 2% to 3% for the full year 2019 compared to last
year.
Full year guidance update:
- The Group will pursue initiatives to reduce unit costs1, with a
targeted 2019 reduction of between -1% to 0% at constant currency
and fuel price.
- The 2019 fuel bill is expected to increase by 550 million euros
compared to 2018 to 5.5 billion euros2, based on the forward curve
of 26 July 2019.
- The Group plans capital expenditure of 3.2 billion euros for
2019 and is targeting a Net debt/EBITDA ratio of below 1.5x.
*****
Limited review procedures were carried out by
the external auditors. Their limited review report was issued
following the Board meeting.
The results presentation is available at
www.airfranceklm.com on 31 July 2019 from 7:15 am
CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO)
will be held on 31 July 2019 at 09.30.
To connect to the conference call, please dial:
France: Local +33 (0)1 76 77 22 57Netherlands:
Local +31 (0)20 703 8261 UK: Local +44 (0)330 336 9411US:
Local +1 323 994 2093
Confirmation code: 3271997
To listen to the audio-replay of the conference
call, please dial:
- France: Local +33 (0) 1 70 48 00 94
- Netherlands: Local +31 (0) 20 721 8903
- UK: Local +44 (0)207 660 0134
- US: Local +1 719-457-0820
Investor
Relations
PressMarie-Agnès de
Peslouan
Wouter van
Beek
+33 1 49 89 52 59
+33 1 49 89 52
60
+33 1 41 56 56
00madepeslouan@airfranceklm.com
Wouter-van.Beek@airfranceklm.com
Income Statement
|
Second Quarter |
First Half |
In millions euros |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
Sales |
7,050 |
6,626 |
+6.4% |
13,036 |
12,432 |
+4.9% |
Other revenues |
0 |
1 |
-100.0% |
0 |
1 |
-100.0% |
Revenues |
7,050 |
6,626 |
+6.4% |
13,036 |
12,432 |
+4.9% |
Aircraft
fuel |
-1,404 |
-1,184 |
+18.6% |
-2,605 |
-2,245 |
+16.0% |
Chartering costs |
-135 |
-146 |
-7.7% |
-269 |
-276 |
-2.5% |
Landing
fees and en route charges |
-507 |
-479 |
+5.9% |
-941 |
-906 |
+3.9% |
Catering |
-208 |
-193 |
+7.8% |
-395 |
-375 |
+5.3% |
Handling
charges and other operating costs |
-455 |
-504 |
-9.7% |
-909 |
-980 |
-7.2% |
Aircraft
maintenance costs |
-646 |
-566 |
+14.1% |
-1,298 |
-1,183 |
+9.7% |
Commercial and distribution costs |
-267 |
-278 |
-4.1% |
-517 |
-510 |
+1.4% |
Other
external expenses |
-433 |
-430 |
+0.7% |
-872 |
-824 |
+5.8% |
Salaries
and related costs |
-2,048 |
-1,959 |
+4.6% |
-4,020 |
-3,812 |
+5.5% |
Taxes
other than income taxes |
-41 |
-38 |
+6.6% |
-93 |
-87 |
+6.9% |
Other
income and expenses |
241 |
200 |
+20.4% |
454 |
436 |
+4.1% |
EBITDA |
1,147 |
1,049 |
+9.3% |
1,571 |
1,670 |
-5.9% |
Amortization, depreciation and provisions |
-747 |
-703 |
+6.2% |
-1,474 |
-1,442 |
+2.2% |
Income from current operations |
400 |
346 |
+15.6% |
97 |
228 |
-57.5% |
Sales of
aircraft equipment |
10 |
0 |
nm |
23 |
-4 |
nm |
Other
non-current income and expenses |
-35 |
20 |
nm |
-30 |
-23 |
+30.4% |
Income from operating activities |
375 |
366 |
+2.5% |
90 |
201 |
-55.2% |
Cost of
financial debt |
-115 |
-122 |
-5.8% |
-221 |
-236 |
-6.4% |
Income
from cash and cash equivalent |
15 |
10 |
+55.2% |
27 |
20 |
+35.0% |
Net cost of financial debt |
-100 |
-112 |
-11.1% |
-194 |
-216 |
-10.2% |
Other
financial income and expenses |
-39 |
-86 |
-54.7% |
-110 |
-74 |
+48.6% |
Income before tax |
236 |
168 |
+40.5% |
-214 |
-89 |
+140.4% |
Income
taxes |
-161 |
-62 |
+160.7% |
-33 |
-68 |
-51.5% |
Net income of consolidated companies |
75 |
106 |
-29.2% |
-247 |
-157 |
+57.3% |
Share of
profits (losses) of associates |
6 |
5 |
+20.0% |
8 |
-1 |
nm |
Income from continuing operations |
81 |
111 |
-27.0% |
-239 |
-158 |
+51.3% |
Net
income from discontinued operations |
0 |
0 |
nm |
0 |
0 |
nm |
Net income for the period |
81 |
111 |
-26.4% |
-239 |
-158 |
+50.3% |
Minority
interest |
1 |
1 |
0.0% |
1 |
1 |
0.0% |
Net income for the period – Group part |
80 |
110 |
-27.3% |
-240 |
-159 |
+50.9% |
Consolidated Balance Sheet
Assets |
30 June 2019 |
31 Dec 2018 |
In million euros |
Goodwill |
217 |
217 |
Intangible assets |
1,248 |
1,194 |
Flight
equipment |
10,541 |
10,167 |
Other
property, plant and equipment |
1,530 |
1,503 |
Right-of-use assets |
5,079 |
5,243 |
Investments in equity associates |
305 |
311 |
Pension
assets |
174 |
331 |
Other
financial assets |
1,384 |
1,487 |
Deferred
tax assets |
441 |
544 |
Other
non-current assets |
242 |
264 |
Total non-current assets |
21,161 |
21,261 |
Assets
held for sale |
0 |
0 |
Other
short-term financial assets |
469 |
325 |
Inventories |
702 |
633 |
Trade
receivables |
2,558 |
2,191 |
Other
current assets |
1,224 |
1,062 |
Cash and
cash equivalents |
4,418 |
3,585 |
Total current assets |
9,371 |
7,796 |
Total assets |
30,532 |
29,057 |
Liabilities and
equity |
30 June 2019 |
31 Dec 2018 |
In million euros |
Issued capital |
429 |
429 |
Additional paid-in capital |
4,139 |
4,139 |
Treasury
shares |
-67 |
-67 |
Perpetual |
403 |
403 |
Reserves
and retained earnings |
-3,327 |
-3,051 |
Equity attributable to equity holders of Air
France-KLM |
1,577 |
1,853 |
Non-controlling interests |
13 |
12 |
Total Equity |
1,590 |
1,865 |
Pension
provisions |
2,285 |
2,098 |
Return
obligation liability and other provisions |
3,097 |
3,035 |
Financial debt |
5,949 |
5,733 |
Lease
debt |
3,473 |
3,546 |
Deferred
tax liabilities |
0 |
4 |
Other
non-current liabilities |
293 |
459 |
Total non-current liabilities |
15,097 |
14,875 |
Return
obligation liability and other provisions |
558 |
492 |
Current
portion of financial debt |
1,080 |
826 |
Current
portion of lease debt |
955 |
989 |
Trade
payables |
2,500 |
2,460 |
Deferred
revenue on ticket sales |
4,407 |
3,153 |
Frequent
flyer program |
837 |
844 |
Other
current liabilities |
3,505 |
3,548 |
Bank
overdrafts |
3 |
5 |
Total current liabilities |
13,845 |
12,317 |
Total equity and liabilities |
30,532 |
29,057 |
Statement of Consolidated Cash Flows
from 1st January until 30th June 2019
In million euros |
30 June 2019 |
30 June 2018 |
Net income from continuing operations |
-239 |
-158 |
Net
income from discontinued operations |
0 |
0 |
Amortization, depreciation and operating provisions |
1,475 |
1,442 |
Financial provisions |
89 |
57 |
Loss
(gain) on disposals of tangible and intangible assets |
-31 |
7 |
Loss
(gain)on disposals of subsidiaries and associates |
-2 |
0 |
Derivatives – non monetary result |
24 |
-23 |
Unrealized foreign exchange gains and losses, net |
52 |
108 |
Other
non-monetary items |
64 |
-182 |
Share of
(profits) losses of associates |
-8 |
1 |
Deferred
taxes |
30 |
61 |
Financial Capacity |
1,454 |
1,313 |
Of which discontinued operations |
0 |
0 |
(Increase) / decrease in inventories |
-73 |
-67 |
(Increase) / decrease in trade receivables |
-371 |
-517 |
Increase
/ (decrease) in trade payables |
24 |
163 |
Change
in other receivables and payables |
1,207 |
1,254 |
Change in working capital requirements |
787 |
833 |
Change
in working capital from discontinued operations |
0 |
0 |
Net cash flow from operating activities |
2,241 |
2,146 |
Purchase
of property, plant and equipment and intangible assets |
-1,464 |
-1,534 |
Proceeds
on disposal of property, plant and equipment and intangible
assets |
75 |
46 |
Proceeds
on disposal of subsidiaries, of shares in non-controlled
entities |
8 |
3 |
Acquisition of subsidiaries, of shares in non-controlled
entities |
0 |
-8 |
Dividends received |
7 |
3 |
Decrease
(increase) in net investments, more than 3 months |
20 |
5 |
Net cash
flow used in investing activities of discontinued operations |
0 |
0 |
Net cash flow used in investing activities |
-1,354 |
-1,485 |
Increase
of equity due to new convertible bond |
54 |
0 |
Perpetual (including premium) |
0 |
0 |
Issuance
of debt |
762 |
295 |
Repayment on financial debt |
-339 |
-998 |
Payments
on lease debt |
-501 |
-517 |
Decrease
(increase ) in loans, net |
-14 |
-49 |
Dividends and coupons on perpetual paid |
-1 |
-1 |
Net cash
flow used in financing activities of discontinued operations |
0 |
0 |
Net cash flow from financing activities |
-39 |
-1,270 |
Effect
of exchange rate on cash and cash equivalents and bank
overdrafts |
-13 |
8 |
Effect
of exch. rate on cash and cash eq. and bank overdrafts of disc.
ops. |
0 |
0 |
Change in cash and cash equivalents and bank
overdrafts |
835 |
-601 |
Cash and
cash equivalents and bank overdrafts at beginning of period |
3,580 |
4,667 |
Cash and
cash equivalents and bank overdrafts at end of period |
4,415 |
4,066 |
Change in treasury of discontinued operations |
0 |
0 |
Key Performance Indicators
EBITDA
|
Second Quarter |
First Half |
In millions euros |
2019 |
2018 |
2019 |
2018 |
Income/(loss) from current operations |
400 |
346 |
97 |
228 |
Amortization, depreciation and provisions |
747 |
703 |
1,474 |
1,442 |
EBITDA |
1,147 |
1,049 |
1,571 |
1,670 |
Restated net result, group
share
|
Second Quarter |
First Half |
In million euros |
2019 |
2018 |
2019 |
2018 |
Net income/(loss), Group share |
80 |
110 |
-240 |
-159 |
Net
income/(loss) from discontinued operations |
0 |
0 |
0 |
0 |
Unrealized foreign exchange gains and losses, net |
-12 |
132 |
52 |
108 |
Change
in fair value of financial assets and liabilities
(derivatives) |
5 |
-74 |
-20 |
-60 |
Non-current income and expenses |
25 |
-20 |
7 |
27 |
Depreciation of shares available for sale |
-6 |
-22 |
-12 |
-22 |
De-recognition of deferred tax assets |
0 |
0 |
0 |
0 |
Restated net income/(loss), group part |
92 |
125 |
-213 |
-106 |
Coupons
on perpetual |
-8 |
-12 |
-12 |
-12 |
Restated net income/(loss), group share including coupons
on perpetual (used to calculate earnings per share) |
84 |
113 |
-225 |
-118 |
Restated net income/(loss) per share (in €) |
0.20 |
0.26 |
-0.53 |
-0.28 |
Return on capital employed (ROCE)1
In million euros |
30 June 2019 |
30 June 2018 |
30 June 2018 |
30 June 2017 |
Goodwill and intangible assets |
1,465 |
1,379 |
1,379 |
1,309 |
Flight
equipment |
10,541 |
10,081 |
10,081 |
9,539 |
Other
property, plant and equipment |
1,530 |
1,443 |
1,443 |
1,378 |
Right of
use assets |
5,079 |
5,565 |
5,565 |
5,577 |
Investments in equity associates |
305 |
294 |
294 |
294 |
Financial
assets excluding shares available for sale, marketable securities
and financial deposits |
133 |
122 |
122 |
106 |
Provisions, excluding pension, cargo litigation and
restructuring |
-3,243 |
-2,944 |
-2,944 |
-2,698 |
WCR,
excluding market value of derivatives |
-6,942 |
-6,669 |
-6,669 |
-6,417 |
Capital employed |
8,868 |
9,271 |
9,271 |
9,088 |
Average capital employed (A) |
9,070 |
9,180 |
Income
from current operations |
1,201 |
1,610 |
-
Dividends received |
-1 |
-3 |
- Share
of profits (losses) of associates |
6 |
13 |
-
Normative income tax |
-358 |
-481 |
Income from current operations after tax (B) |
848 |
1,139 |
ROCE, trailing 12 months (B/A) |
9.3% |
12.4% |
Net debt
|
Balance sheet at |
In million euros |
30 June 2019 |
31 Dec 2018 |
Financial debt |
6,685 |
6,216 |
Lease
debt |
4,340 |
4,450 |
Financial
assets pledged (OCEANE swap) |
0 |
0 |
Currency
hedge on financial debt |
5 |
7 |
Accrued
interest |
-52 |
-67 |
Gross financial debt (A) |
10,978 |
10,606 |
Cash and
cash equivalents |
4,418 |
3,585 |
Marketable securities |
49 |
74 |
Cash
pledges |
269 |
265 |
Deposits
(bonds) |
548 |
522 |
Bank
overdrafts |
-3 |
-5 |
Other |
-1 |
1 |
Net cash (B) |
5,280 |
4,442 |
Net debt (A) – (B) |
5,698 |
6,164 |
Adjusted operating free cash
flow
|
Second Quarter |
First Half |
In million euros |
2019 |
2018 |
2019 |
2018 |
Net cash flow from operating activities, continued operations |
1,071 |
849 |
2,241 |
2,146 |
Investment in property, plant, equipment and intangible assets |
-747 |
-595 |
-1,465 |
-1,534 |
Proceeds
on disposal of property, plant, equipment and intangible
assets |
36 |
20 |
76 |
46 |
Operating free cash flow |
360 |
274 |
852 |
658 |
Payments on lease debt |
-250 |
-275 |
-501 |
-517 |
Adjusted operating free cash flow |
110 |
-1 |
351 |
141 |
Unit cost: net cost per ASK
|
Second Quarter |
First half |
|
2019 |
2018 |
2019 |
2018 |
Revenues (in €m) |
7,050 |
6,627 |
13,036 |
12,432 |
Income/(loss) from current operations (in €m) -/- |
400 |
346 |
97 |
228 |
Total
operating expense (in €m) |
6,650 |
6,281 |
12,939 |
12,204 |
Passenger
network business – other revenues (in €m) |
-227 |
-226 |
-436 |
-414 |
Cargo
network business – other revenues (in €m) |
-80 |
-76 |
-153 |
-143 |
Third-party revenues in the maintenance business (in €m) |
-527 |
-471 |
-1,081 |
-941 |
Transavia
- other revenues (in €m) |
-1 |
-1 |
-9 |
-11 |
Third-party revenues of other businesses (in €m) |
-8 |
-8 |
-15 |
-17 |
Net cost (in €m) |
5,807 |
5,499 |
11,245 |
10,678 |
Capacity produced, reported in ASK* |
85,207 |
81,538 |
160,793 |
154,941 |
Net cost per ASK (in € cents per ASK) |
6.82 |
6.75 |
6.99 |
6.89 |
Gross change |
|
1.0% |
|
1.5% |
Currency effect on net costs (in €m) |
|
114 |
|
197 |
Change at constant currency |
|
-1.0% |
|
-0.3% |
Fuel price effect (in €m) |
|
76 |
|
121 |
Change on a constant currency and fuel price basis |
|
-2.3% |
|
-1.4% |
Net cost per ASK on a constant currency and fuel price
basis (in € cents per ASK) |
6.82 |
6.98 |
6.99 |
7.09 |
Change at constant currency and fuel price
basis |
|
-2.3% |
|
-1.4% |
* 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).
Airline results
Air France Group
|
Second Quarter |
First Half |
|
2019 |
Change |
2019 |
Change |
Revenue (in €m) |
4,284 |
+9.1% |
7,982 |
+6.7% |
EBITDA
(in €m) |
609 |
+170 |
813 |
+69 |
Operating result (en m€) |
143 |
+130 |
-113 |
+51 |
Operating margin (%) |
3.3% |
+3.0 pt |
-1.4% |
+0.8 pt |
Operating cash flow before WCR and restructuring cash out (in
€m) |
589 |
+218 |
764 |
+127 |
Operating cash flow (before WCR and restructuring) margin |
13.8% |
+4.3 pt |
9.6% |
+1.1 pt |
KLM
Group |
Second Quarter |
First Half |
|
2019 |
Change |
2019 |
Change |
Revenue (in €m) |
2,899 |
+3.7% |
5,284 |
+2.0% |
EBITDA
(in €m) |
537 |
-66 |
744 |
-172 |
Operating result (en m€) |
258 |
-70 |
202 |
-186 |
Operating margin (%) |
8.9% |
-2.8 pt |
3.8% |
-3.7 pt |
Operating cash flow before WCR and restructuring cash out (in
€m) |
507 |
-35 |
692 |
-95 |
Operating cash flow (before WCR and restructuring) margin |
17.5% |
-1.9 pt |
13.1% |
-2.1 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 2019
Aircraft type |
AF (incl. HOP) |
KLM (incl. KLC & MP) |
Transavia |
Owned |
Finance lease |
Operating lease |
Total |
In operation |
Change / 31/12/18 |
B747-400 |
|
10 |
|
10 |
|
|
10 |
10 |
-1 |
B777-300 |
43 |
14 |
|
11 |
24 |
22 |
57 |
57 |
|
B777-200 |
25 |
15 |
|
24 |
1 |
15 |
40 |
40 |
|
B787-9 |
9 |
13 |
|
7 |
3 |
12 |
22 |
22 |
2 |
B787-10 |
|
1 |
|
1 |
|
|
1 |
1 |
|
A380-800 |
10 |
|
|
1 |
4 |
5 |
10 |
10 |
|
A340-300 |
5 |
|
|
5 |
|
|
5 |
5 |
-1 |
A330-300 |
|
5 |
|
|
|
5 |
5 |
5 |
|
A330-200 |
15 |
8 |
|
11 |
|
12 |
23 |
23 |
|
Total Long-Haul |
107 |
66 |
0 |
70 |
32 |
71 |
173 |
173 |
1 |
B737-900 |
|
5 |
|
2 |
|
3 |
5 |
5 |
|
B737-800 |
|
30 |
72 |
29 |
10 |
63 |
102 |
102 |
9 |
B737-700 |
|
16 |
7 |
3 |
5 |
15 |
23 |
23 |
-2 |
A321 |
20 |
|
|
11 |
|
9 |
20 |
20 |
|
A320 |
43 |
|
|
3 |
5 |
35 |
43 |
43 |
|
A319 |
33 |
|
|
20 |
|
13 |
33 |
33 |
-1 |
A318 |
18 |
|
|
16 |
2 |
|
18 |
18 |
|
Total Medium-Haul |
114 |
51 |
79 |
84 |
22 |
138 |
244 |
244 |
6 |
ATR72-600 |
6 |
|
|
|
|
6 |
6 |
5 |
-1 |
ATR72-500 |
1 |
|
|
|
|
1 |
1 |
|
-1 |
ATR42-500 |
3 |
|
|
|
|
3 |
3 |
|
-5 |
Canadair
Jet 1000 |
14 |
|
|
14 |
|
|
14 |
14 |
|
Canadair
Jet 700 |
11 |
|
|
11 |
|
|
11 |
10 |
2 |
Embraer
190 |
12 |
32 |
|
7 |
14 |
23 |
44 |
44 |
2 |
Embraer
175 |
|
17 |
|
3 |
14 |
|
17 |
17 |
|
Embraer
170 |
15 |
|
|
9 |
1 |
5 |
15 |
15 |
|
Embraer
145 |
17 |
|
|
14 |
3 |
|
17 |
13 |
|
Total Regional |
79 |
49 |
0 |
58 |
32 |
38 |
128 |
118 |
-3 |
B747-400ERF |
|
3 |
|
3 |
|
|
3 |
3 |
|
B747-400BCF |
|
1 |
|
1 |
|
|
1 |
1 |
|
B777-F |
2 |
|
|
2 |
|
|
2 |
2 |
|
Total Cargo |
2 |
4 |
0 |
6 |
0 |
0 |
6 |
6 |
0 |
|
|
|
|
|
|
|
|
|
|
Total |
302 |
170 |
79 |
218 |
86 |
247 |
551 |
541 |
4 |
1 The Air France strike had a -€260 million
impact on the second quarter operating result and a -€335m impact
on the half year operating result
2 Passenger unit revenue is the aggregate of Passenger network
and Transavia unit revenues, change at constant currency
1 To align with industry practice, as of 2019
the EASK metric will no longer be used.The new Unit Cost definition
will be: Net cost per Available Seat Kilometer at constant fuel and
currency. The impact of this change for the unit cost is -0.1pt for
2019
2 Based on the forward curves of 26 July 2019
average Brent price of USD 65, average jet fuel price of USD 684
per ton including into plane costs. Assuming exchange rate of
EUR/USD of 1.13 in 2019
1 The ROCE definition has been updated within
the framework of IFRS 16 implementation. The asset value linked to
the aircraft lease contracts now corresponds to the net book value
of the right-of-use asset of all the lease contracts. Moreover, the
“operating result, adjusted for operating leases” no longer
existing having been replaced by “income from current operations”
which, thanks to IFRS 16 implementation, no longer includes the
financial cost of lease contracts. Finally, the Group now uses a
normative income tax rate, calculated according to the tax rates
applied in France and in the Netherlands.
- Q2_2019 Press release EN_VDEF
Grafico Azioni Air FranceKLM (EU:AF)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Air FranceKLM (EU:AF)
Storico
Da Apr 2023 a Apr 2024