First quarter 2020 results Air France-KLM
7 May 2020
FIRST QUARTER 2020
Operating result at -815 million euros, strongly
impacted by the Covid-19 crisis |
FIRST QUARTER 2020A strong
performance at the start of the year with passenger unit revenue up
+0.8% end of February 2020. March 2020 however was strongly
impacted by the expansion of the virus and consequential globally
imposed travel restrictions to counter the spread of the Covid-19
virus. This influenced negatively the first quarter 2020
results:
- Revenue at 5,020 million euros, down 922 million compared to
last year
- Unit cost at constant currency and fuel reduced by 1.6% end of
February 2020, and then up 3.5% end of March 2020
- Operating result at -815 million euros, down 529 million euros
compared to last year, entirely caused by March 2020 with an
operating result at -560 million euros1
- Net income at -1,801 million euros, including Covid-19 related
over hedging -455 million euros, release of deferred tax assets
-173 million euros and impairment of Boeing 747 aircraft -21
million euros
- Net debt/EBITDA ratio at 1.8x, compared to 1.5x at the end of
2019
RAPID RESPONSE TO THE COVID-19
OUTBREAK
- Implementation of the highest sanitary safety standards for
frontline operation staff, crew and customers to counter virus
transmission risks. The Group operated special flights for
repatriation of citizens, setup of an “air bridge” fore
essential medical supplies, in close cooperation with the
French and Dutch governments and is maintaining the essential links
with territories
- Swift adjustments in network and capacity, March 2020 capacity
down 35% and around 95% of planned capacity to be suspended for the
second quarter 2020
- Quick and effective cash protection measures implemented, costs
reduced by 500 million euros on 2020, Capex reduced to 2.4 billion
euros for 2020 and positive impact of partial activity
implementation and crew variable pay reduction estimated at 350
million euros per month in the second quarter 2020
- Liquidity injections of 7 billion euros benefiting to Air
France through a bank loan guaranteed by the French state and a
direct shareholder loan from the French state. Ongoing discussions
with the Dutch state concerning KLM support
- As an integral part of the financing packages the Group will
build a new transformation plan to ensure economic and financial
sustainability over the medium and long term with integration of
new ambitious environmental goals. This new plan will be
communicated in summer 2020.
OUTLOOKHigh level of
uncertainty on the duration of the Covid-19 crisis and impact on
the macro-economic environment. The Group withdraws its earlier
2020 guidance elements.The Group now anticipates:
- Progressive lifting of border restrictions in 2020, enabling a
slow capacity resumption in Summer 2020, with capacity for the
second and third quarter 2020 around respectively -95% and -80%
compared to previous year
- A prolonged negative impact on passenger demand, not expected
to recover to pre-crisis levels before several years
- A fleet repositioning including structural capacity reduction
of at least -20% in 2021 compared to pre-crisis 2019 level
The Group foresees significantly negative
EBITDA in full year 2020 and a significantly higher current
operating income loss in the second quarter than in the first
quarter 2020.
Air France-KLM Group |
First Quarter |
2020 |
Change |
Passengers (thousands) |
18,111 |
-20.1% |
Passenger Unit revenue per ASK2 (€ cts) |
5.80 |
-6.9% |
Operating result (€m) |
-815 |
-529 |
Net income – Group part (€m) |
-1,801 |
-1,477 |
Adj. operating free cash flow (€m) |
-825 |
-1,066 |
Net debt at end of period (€m) |
6,584 |
437 |
The Board of Directors of Air France-KLM,
chaired by Anne-Marie Couderc, met on 6 May 2020 to approve the
financial statements for the first quarter 2020. Benjamin Smith,
Chief Executive Officer of the Air France-KLM Group, said: "The Air
France-KLM Group had a promising start to the first quarter in line
with the objectives of the strategic plan presented in November
2019. However, the acceleration of the Covid-19 crisis in March had
a strong impact on the Group's first quarter results. I would like
to thank our teams for their exceptional mobilization in this
unprecedented crisis. The Air France-KLM Group has adapted rapidly,
by implementing health safety measures essential to our staff and
customers, reducing our costs to preserve our liquidity,
continuously adjusting our flight schedule, and the many
repatriation flights and flights to transport medical equipment.
Uncertainties remain regarding the evolution of Covid-19 and we
must be cautious in the assumptions of recovery in the coming
months. Nevertheless, the commitment to financial support of the
French and Dutch governments to our Group, as well as that our
banking partners participating in these schemes, is a strong
testimony of their confidence in our ability to weather this crisis
and rebuild. We are working on a renewal plan to ensure that the
Air France-KLM Group regains its competitiveness in a deeply shaken
world and reaffirms its leadership in the sustainable transition of
air transport. These new orientations will be presented in the
coming months.”
Business review
Network: First quarter 2020 operating result down 468
million euros impacted by Covid-19
Network |
First Quarter |
2020 |
Change |
Change constant currency |
Total revenues (€m) |
4,278 |
-16.7% |
-17.5% |
Scheduled revenues (€m) |
4,070 |
-16.8% |
-17.7% |
Operating result (€m) |
-729 |
-468 |
-500 |
First quarter 2020 revenues decreased by 17.7%
at constant currency to 4.07 billion euros. The operating result
amounted to -729 million euros, a 500 million euros decrease at
constant currency compared to last year. Actions have been taken to
preserve cash including reduction of investments, cost savings
measures, deferral of supplier payments and partial activity
measures for employees.
Passenger network: Good start in January
and February 2020, the first quarter 2020 is down due to Covid-19
impact in March 2020
|
First Quarter |
Passenger network |
2020 |
Change |
Change constant currency |
Passengers (thousands) |
15,762 |
-20.2% |
|
Capacity (ASK m) |
62,403 |
-10.5% |
|
Traffic (RPK m) |
49,848 |
-17.2% |
|
Load factor |
79.9% |
-6.4
pt |
|
Total passenger revenues (€m) |
3,811 |
-16.9% |
-17.7% |
Scheduled passenger revenues (€m) |
3,671 |
-17.0% |
-17.8% |
Unit revenue per ASK (€ cts) |
5.88 |
-7.2% |
-8.1% |
Until the end of February 2020 the passenger
network activity performance was good with stable unit revenue at
constant currency compared to last year:North America unit revenues
slightly down due to high capacity growth, which was mainly an
Asian fleet redeployment effect, following Covid-19 outbreak.Asian
network already impacted by the Covid-19, whereby all flights to
China were suspended as of 30 January 2020.Strong performance in
Medium-haul network unit revenue thanks to moderate industry
capacity growth and ongoing rationalization of the domestic France
network
For the entire first quarter 2020 capacity
declined by 10.5% and unit revenues at -8.1% at constant currency
compared to last year, down in all markets due to Covid-19 crisis
impact acceleration during the month of March 2020.
Cargo: Performance in the first quarter 2020 impacted by
reduced belly capacity, partly offset by increase in full freighter
activity
|
First Quarter |
Cargo business |
2020 |
Change |
Change constant currency |
Tons (thousands) |
242 |
-10.1% |
|
Capacity (ATK m) |
3,191 |
-7.8% |
|
Traffic (RTK m) |
1,832 |
-10.5% |
|
Load factor |
57.4% |
-1.7
pt |
|
Total Cargo revenues (€m) |
466 |
-14.8% |
-16.1% |
Scheduled cargo revenues (€m) |
399 |
-15.7% |
-17.0% |
Unit revenue per ATK (€ cts ) |
12.50 |
-8.5% |
-10.0% |
Unit revenue remained under strong pressure till
February 2020, while positive for March due to a rate increase as
an effect of the wide body belly capacity crunch, overall first
quarter 2020 unit revenue was down 10.0% compared to last year at
constant currency.
Cargo industry capacity is impacted by the
Covid-19 crisis and is approximately 35% lower compared to last
year with wide-body belly capacity down 85% and full freighter
capacity up 14%.
On the demand side, world-wide air freight
volumes are down due to Covid-19 crisis and supply-demand balance
is foreseen to remain volatile in the next months with production
lines opening up and limited belly capacity. The Group anticipates
to the strong demand on certain Cargo routes, particularly Asia to
Europe by adding production by means of increasing utilization of
its full freighters, temporarily redeployment of phased-out
747-combi aircraft and is testing with Cargo in passenger aircraft
cabins.The Group has in close cooperation with the French and Dutch
governments setup an “air bridge” between its home markets and
China for relieve goods and medical supplies.
Transavia operating result –12 million
euros compared to last year as impacted by Covid-19
crisis
|
First Quarter |
Transavia |
2020 |
Change |
Passengers (thousands) |
2,349 |
-19.8% |
Capacity (ASK m) |
4,892 |
-16.0% |
Traffic (RPK m) |
4,456 |
-17.0% |
Load factor |
91.1% |
-1.1 pt |
Total passenger revenues (€m) |
242 |
-1.6% |
Unit revenue per ASK (€ cts) |
4.70 |
+13.1% |
Unit cost per ASK (€ cts) |
6.37 |
+18.8% |
Operating result (€m) |
-82 |
-12 |
The second half of March was severely hit by the
Covid-19 outbreak with consequential reduction in activity due to
Covid-19 flight cancellations. Transavia France and the Netherlands
have temporarily fully grounded their fleet. Actions have been
taken to preserve cash including reduction of investments, cost
savings measures, deferral of supplier payments and partial
activity measures.
The increase in unit revenue by 13.1% in the
first quarter 2020 is explained by a good performance until end of
February with unit revenues 10% above last year combined with high
level of ferry flights for passenger returns in month of March
2020. The Transavia unit cost for the first quarter increased by
15.1% at constant fuel and currency, explained by the reduction in
capacity at the end of the quarter.Overall the impact of Covid-19
crisis on the month of March is fully causing the first quarter
2020 operating result decline of 12 million euros compared to last
year.
Maintenance business margins for first quarter 2020 at
-0.3%, impacted by Covid-19
|
First Quarter |
Maintenance |
2020 |
Change |
Change constant currency |
Total revenues (€m) |
1,138 |
-2.7% |
|
Third-party revenues (€m) |
493 |
-11.0% |
-13.9% |
Operating result (€m) |
-3 |
-48 |
-54 |
Operating margin (%) |
-0.3% |
-4.1 pt |
-4.5 pt |
The first quarter operating result stood at -3
million euros, a decrease of 48 million euros, highly impacted by
the Covid-19 crisis with the borders closures starting from
mid-March in Europe and since January with Chinese clients.Even if
the PBH contracts for engines and components allow to maintain
certain activity flows, the Covid-19 crisis has a major impacts on
the maintenance business and difficulties encountered by the
maintenance clients are a risk for the business.The Maintenance
order book stood of 11.5 billion dollars at 31 December 2019, is
not yet updated as there is not yet clear visibility on expected
client fleet and activity reductions. The Maintenance business is
carefully managing its external business including agreements with
clients on payment terms. Actions have been taken to preserve
cash including reduction of investments, cost savings measures,
renegotiation of payment terms with suppliers and partial activity
measures.
Air France-KLM Group: First quarter 2020
revenues down 922 million euros and operating result down 529
million euros
|
First Quarter |
|
2020 |
Change |
Change constant currency |
Capacity (ASK m) |
67,295 |
-11.0% |
|
Traffic (RPK m) |
54,304 |
-17.2% |
|
Passenger unit revenue per ASK (€ cts) |
5.80 |
-6.0% |
-6.9% |
Group unit revenue per ASK (€ cts) |
6.39 |
-6.0% |
-6.9% |
Group unit cost per ASK (€ cts) at constant fuel |
7.60 |
+6.0% |
+3.5% |
Revenues (€m) |
5,020 |
-15.5% |
-16.5% |
EBITDA (€m) |
-61 |
-504 |
-542 |
Operating result (€m) |
-815 |
-529 |
-567 |
Operating margin (%) |
-16.2% |
-11.4
pt |
-12.1 pt |
Net income - Group part (€m) |
-1,801 |
-1,477 |
|
2019 results restated for LLP componentization
accounting change and EU passenger compensation reclassification
between revenues and external expenses
In the first quarter 2020, the Air France-KLM
Group posted an operating result of -815 million euros, down by 529
million euros compared to last year, entirely caused by March 2020
with an operating result at -560 million euros.
Net income amounted to -1,801 million euros in
2020, a decrease of 1,477 million euros compared to last year, of
which exceptional accounting items due to Covid-19 for impairment
on 8 Boeing 747s -21 million euros, accelerated depreciation on
Airbus 380 -25 million euros, fuel “over hedge” -455 million euros
and reduction of deferred income tax asset -173 million euros.
Deferred income tax asset -173 million
euros:Following the current COVID-19 crisis, the
perspectives of recoverability within the seven years horizon have
been downward revised leading to a write-off of €311 million of
deferred tax assets for tax losses compared to the opening position
of the fiscal year 2020 at the level of the French Tax.
Fuel “over hedge” -455 million euros for
the remainder of 2020:As a result of capacity reductions
and lower fuel consumption forecasts, the Group is in a position of
over-hedging. The change in fair value, initially recognized in
equity, has been recycled to “Other financial income and
expenses”
The first quarter 2020 fuel bill including
hedging stood at 1,185 million euros.
Currencies had a positive 71 million euro impact
on revenues and a negative 32 million euro effect on costs
(ex-fuel) including currency hedging in the first quarter of
2020.
The first quarter 2020 unit cost
increased by 3.5%, primarily caused by Covid-19 related capacity
reductions
On a constant currency and fuel price basis,
unit costs were up 3.5% in the first quarter 2020.
Group net employee costs were down 2.8% in 2020
compared to last year, supported by partial activity implementation
at Air France in last 2 weeks of March 2020, release of hired staff
and no profit sharing provisions to be made at both airlines. The
average number of FTEs (Full Time Equivalent) in first quarter 2020
increased by 600 compared to last year, including an additional 450
Pilots and 450 Cabin Crew.
Net debt up 437 million euros and leverage ratio at
1.8x
|
First Quarter |
In € million |
2020 |
Change |
Cash flow before change in WCR and Voluntary Departure Plans,
continuing operations (€m) |
-171 |
-582 |
Cash out related to Voluntary Departure Plans (€m) |
-9 |
+19 |
Change in Working Capital Requirement (WCR) (€m) |
482 |
-344 |
Net cash flow from operating activities
(€m) |
282 |
-907 |
Net investments* (€m) |
-858 |
-161 |
Operating free cash flow
(€m) |
-576 |
-1,068 |
Repayment of lease debt |
-249 |
+2 |
Adjusted operating free cash flow** |
-825 |
-1,066 |
* 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 of -825 million euros, a decrease of 1,066 million euros
compared to last year, mainly explained by an operating cash flow
decline of 907 million euros.
In € million |
31 Mar 2020 |
31 Dec 2019 |
Net debt |
6,584 |
6,147 |
EBITDA
trailing 12 months |
3,624 |
4,128 |
Net debt/EBITDA trailing 12
months |
1.8 x |
1.5 x |
Both airlines results negatively impacted in the first
quarter 2020
|
First Quarter |
|
2020 |
Change |
Air France Group Operating result (€m) |
-536 |
-287 |
Operating margin (%) |
-17.8% |
-11.0 pt |
KLM Group Operating result (€m) |
-275 |
-228 |
Operating margin (%) |
-12.9% |
-10.9 pt |
OUTLOOK
High level of uncertainty on the duration of the
Covid-19 crisis and impact on the macro-economic environment.
Therefore the Group withdraws its earlier 2020 guidance
elements.The Group now
anticipates: ·Progressive
lifting of border restrictions in 2020, enabling a slow capacity
resumption in Summer 2020, with capacity for the second and third
quarter 2020 at around respectively
~-95%
and ~-80% compared to previous year
- A prolonged negative impact on passenger demand, not expected
to recover to pre-crisis levels before several years
- A fleet repositioning including structural reduction in
capacity of at least -20% in 2021 compared to pre-crisis 2019
level
The
Group foresees significantly negative EBITDA in full year 2020 and
a significantly higher current operating income loss in the second
quarter than in the first quarter 2020.
As an integral part of the financing packages the Group will
build a new transformation plan to ensure economic and financial
sustainability over the medium and long term with integration of
new ambitious environmental goals. This new plan will be
communicated in the summer of 2020.
CASH
PROTECTION MEASURES IMPLEMENTED IN RESPONSE TO THE COVID-19
CRISISThe Group has implemented most stringent cash
preservation measures in response to the COVID-19 crisis to ensure
operational cash cost savings, including:
- Capacity reductions delivering around 50% variable cost
savings
- Estimated savings at 350 million euros per month in the second
quarter 2020 from Group partial activity and crew variable pay
reduction
- Other cost measures totaling 500 million euros in 2020, for
which further revisions are ongoing including termination of most
of the temporary employee contracts
Furthermore, the Group has revised its capital
expenditure plan 2020 by 1.2 billion euros to 2.4 billion euros
compared to 3.6 billion euros in the previous guidance, of which
0.9 billion euros was already engaged. This includes the deferral
of 3 Airbus 350s to 2021 and the remaining fleet deliveries in 2020
are expected to be primarily engaged under financing
arrangements.Other Cash protection measures taken include the
deferral of 570 million euros of tax and social charges payments
beyond 2020 and further deferrals of suppliers’ payables and the
airlines of the Group have established a customer voucher policy in
line with industry practice.
LIQUIDITY REQUIREMENT FORESEEN IN THE
THIRD QUARTER 2020Despite these cash preservation measures
the Group has indicated the need for additional liquidity in the
third quarter 2020, considering an negative operational cash cost
burn around 400 million euros per month in the second quarter 2020,
and a high level of uncertainty on the crisis impact in third and
fourth quarters. In addition there are the financial and other cash
impacts3, a capital expenditure plan of 2.4 billion euros for the
full year 2020, a working capital risk estimated at around 2.5
billion euros mainly from deferred ticket revenues.Therefore an
initial financing package of 7 billion euros through a bank loan
guaranteed by the French state and a direct shareholder loan from
the French state is approved by the EU. It will enable the Group to
meet Air France’s financial obligations and ensure recovery of
activity beyond the current crisis. Discussions with the Dutch
state and banks are ongoing on financial support directed to
KLM.
******
The first quarter 2020 accounts are not audited by the Statutory
Auditors.
The results presentation is available at
www.airfranceklm.com on 7 May 2020 from 7:15 am
CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO)
will be held on 7 May 2020 at 08.30
CET.
To connect to the conference call, please dial:
France: Local +33 (0)1 70 72 25 50Netherlands:
Local +31 (0) 20 703 8211UK: Local +44 (0)330 336 9126US: Local +1
720 452 9217
Confirmation code: 7621430
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
Confirmation code: 7621430
Investor
Relations
PressOlivier
Gall
Wouter van
Beek
+33 1 49 89 52
59
+33 1 49 89 52
60
+33 1 41 56 56
00olgall@airfranceklm.com
Wouter-van.Beek@airfranceklm.com
Income Statement
|
First Quarter |
€m |
2020 |
2019 |
Change |
Sales |
5,020 |
5,942 |
-15.5% |
Other revenues |
0 |
0 |
nm |
Revenues |
5,020 |
5,942 |
-15.5% |
Aircraft
fuel |
-1,185 |
-1,201 |
-1.3% |
Chartering costs |
-89 |
-134 |
-33.6% |
Landing
fees and en route charges |
-387 |
-434 |
-10.8% |
Catering |
-164 |
-187 |
-12.3% |
Handling
charges and other operating costs |
-359 |
-410 |
-12.4% |
Aircraft
maintenance costs |
-614 |
-652 |
-5.8% |
Commercial and distribution costs |
-194 |
-250 |
-22.4% |
Other
external expenses |
-404 |
-439 |
-8.0% |
Salaries
and related costs |
-1,916 |
-1,972 |
-2.8% |
Taxes
other than income taxes |
-56 |
-52 |
+7.7% |
Other
income and expenses |
287 |
232 |
+23.7% |
EBITDA |
-61 |
443 |
nm |
Amortization, depreciation and provisions |
-754 |
-729 |
+3.4% |
Income from current operations |
-815 |
-286 |
+184.9% |
Sales of
aircraft equipment |
-1 |
13 |
nm |
Other
non-current income and expenses |
-45 |
-40 |
+12.5% |
Income from operating activities |
-861 |
-268 |
+221.3% |
Cost of
financial debt |
-102 |
-106 |
-3.8% |
Income
from cash and cash equivalent |
7 |
12 |
-41.7% |
Net cost of financial debt |
-95 |
-94 |
+1.3% |
Other
financial income and expenses |
-666 |
-92 |
+623.9% |
Income before tax |
-1,622 |
-454 |
+257.5% |
Income
taxes |
-173 |
128 |
nm |
Net income of consolidated companies |
-1,795 |
-326 |
+451.2% |
Share of
profits (losses) of associates |
-8 |
2 |
nm |
Net income for the period |
-1,803 |
-324 |
+457.1% |
Minority
interest |
0 |
0 |
nm |
Net income for the period – Group part |
-1,803 |
-324 |
+457.1% |
2019 results restated for LLP componentization accounting change
and EU passenger compensation reclassification between revenues and
external expenses
Consolidated Balance Sheet
Assets |
31 Mar 2020 |
31 Dec 2019 |
€m |
Goodwill |
218 |
217 |
Intangible assets |
1,347 |
1,305 |
Flight
equipment |
11,465 |
11,334 |
Other
property, plant and equipment |
1,578 |
1,580 |
Right-of-use assets |
5,118 |
5,173 |
Investments in equity associates |
299 |
307 |
Pension
assets |
760 |
420 |
Other
financial assets |
1,095 |
1,096 |
Deferred
tax assets |
325 |
523 |
Other
non-current assets |
277 |
241 |
Total non-current assets |
22,482 |
22,196 |
Other
short-term financial assets |
433 |
800 |
Inventories |
691 |
737 |
Trade
receivables |
1,565 |
2,164 |
Other
current assets |
1,246 |
1,123 |
Cash and
cash equivalents |
5,362 |
3,715 |
Total current assets |
9,297 |
8,539 |
Total assets |
31,779 |
30,735 |
Liabilities and
equity |
31 Mar 2020 |
31 Dec 2019 |
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 |
-4,732 |
-2,620 |
Equity attributable to equity holders of Air
France-KLM |
172 |
2,284 |
Non-controlling interests |
13 |
15 |
Total Equity |
185 |
2,299 |
Pension
provisions |
2,127 |
2,253 |
Return
obligation liability and other provisions |
3,803 |
3,750 |
Financial debt |
6,730 |
6,271 |
Lease
debt |
3,078 |
3,149 |
Deferred
tax liabilities |
53 |
142 |
Other
non-current liabilities |
498 |
222 |
Total non-current liabilities |
16,289 |
15,787 |
Return
obligation liability and other provisions |
783 |
714 |
Current
portion of financial debt |
2,575 |
842 |
Current
portion of lease debt |
970 |
971 |
Trade
payables |
2,056 |
2,379 |
Deferred
revenue on ticket sales |
3,447 |
3,289 |
Frequent
flyer program |
867 |
848 |
Other
current liabilities |
4,602 |
3,602 |
Bank
overdrafts |
5 |
4 |
Total current liabilities |
15,305 |
12,649 |
Total equity and liabilities |
31,779 |
30,735 |
Statement of Consolidated Cash Flows
from 1st January until 31th March 2020
€m |
31 Mar 2020 |
31 Dec 2019 |
Net income from continuing operations |
-1,803 |
-324 |
Amortization, depreciation and operating provisions |
754 |
729 |
Financial provisions |
51 |
53 |
Loss
(gain) on disposals of tangible and intangible assets |
1 |
-20 |
Loss
(gain)on disposals of subsidiaries and associates |
0 |
0 |
Derivatives – non monetary result |
432 |
27 |
Unrealized foreign exchange gains and losses, net |
142 |
76 |
Impairment |
21 |
0 |
Other
non-monetary items |
48 |
-21 |
Share of
(profits) losses of associates |
8 |
-2 |
Deferred taxes |
166 |
-135 |
Financial Capacity |
-180 |
383 |
(Increase) / decrease in inventories |
22 |
-60 |
(Increase) / decrease in trade receivables |
596 |
-399 |
Increase
/ (decrease) in trade payables |
-309 |
-34 |
Change
in other receivables and payables |
153 |
1,299 |
Change in working capital requirements |
462 |
806 |
Net cash flow from operating activities |
282 |
1,189 |
Purchase
of property, plant and equipment and intangible assets |
-869 |
-737 |
Proceeds
on disposal of property, plant and equipment and intangible
assets |
11 |
40 |
Proceeds
on disposal of subsidiaries, of shares in non-controlled
entities |
356 |
4 |
Acquisition of subsidiaries, of shares in non-controlled
entities |
-1 |
0 |
Dividends received |
0 |
3 |
Decrease
(increase) in net investments, more than 3 months |
0 |
22 |
Net cash flow used in investing activities |
-503 |
-668 |
Increase
of equity due to new convertible bond |
0 |
0 |
Perpetual (including premium) |
0 |
0 |
Issuance
of debt |
2,710 |
508 |
Repayment on financial debt |
-588 |
-238 |
Payments
on lease debt |
-249 |
-251 |
Decrease
(increase ) in loans, net |
-3 |
-1 |
Dividends and coupons on perpetual paid |
0 |
0 |
Net cash flow from financing activities |
1,870 |
18 |
Effect
of exchange rate on cash and cash equivalents and bank
overdrafts |
-3 |
7 |
Change in cash and cash equivalents and bank
overdrafts |
1,646 |
546 |
Cash and
cash equivalents and bank overdrafts at beginning of period |
3,711 |
3,580 |
Cash and
cash equivalents and bank overdrafts at end of period |
5,357 |
4,126 |
Change in treasury of discontinued operations |
0 |
0 |
Key Performance Indicators
Restated net result, group
share
|
First Quarter |
In million euros |
2020 |
2019 |
Net income/(loss), Group share |
-1,801 |
-324 |
Unrealized foreign exchange gains and losses, net |
142 |
76 |
Change
in fair value of financial assets and liabilities
(derivatives) |
432 |
-25 |
Non-current income and expenses |
46 |
-18 |
Tax
impact on gross adjustments net result |
-177 |
-10 |
Restated net income/(loss), group part |
-1,358 |
-301 |
Coupons
on perpetual |
-4 |
-4 |
Restated net income/(loss), group share including coupons
on perpetual (used to calculate earnings per share) |
-1,362 |
-305 |
Restated net income/(loss) per share (in €) |
-3.19 |
-0.71 |
Return on capital employed (ROCE)1
In million euros |
31 Mar 2020 |
31 Dec 2019 |
30 Sep 2019 |
30 June 2019 |
31 Mar 2019 |
31 Dec 2018 |
30 Sep 2018 |
30 June 2018 |
Goodwill and intangible assets |
1,564 |
1,522 |
1,481 |
1,465 |
1,485 |
1,411 |
1,391 |
1,379 |
Flight
equipment |
11,465 |
11,334 |
10,905 |
10,823 |
10,456 |
10,308 |
10,401 |
10,294 |
Other
property, plant and equipment |
1,579 |
1,580 |
1,554 |
1,530 |
1,504 |
1,503 |
1,462 |
1,443 |
Right of
use assets |
5,119 |
5,173 |
5,212 |
5,382 |
5,453 |
5,664 |
5,596 |
5,802 |
Investments in equity associates |
299 |
307 |
310 |
305 |
306 |
311 |
299 |
294 |
Financial assets excluding marketable securities and financial
deposits |
142 |
140 |
131 |
125 |
127 |
125 |
116 |
116 |
Provisions, excluding pension, cargo litigation and
restructuring |
-4,190 |
-4,058 |
-4,104 |
-3,892 |
-3,904 |
-3,777 |
-3,671 |
-3,616 |
WCR,
excluding market value of derivatives |
-6,650 |
-6,310 |
-6,285 |
-6,956 |
-6,938 |
-6,133 |
-5,851 |
-6,681 |
Capital employed |
9,328 |
9,688 |
9,204 |
8,782 |
8,489 |
9,412 |
9,743 |
9,031 |
Average capital employed (A) |
9,251 |
9,169 |
Adjusted
results from current operations |
612 |
1,224 |
-
Dividends received |
-2 |
-2 |
- Share
of profits (losses) of associates |
12 |
23 |
-
Normative income tax |
-155 |
-335 |
Adjusted result from current operations after tax
(B) |
467 |
910 |
ROCE, trailing 12 months (B/A) |
5.0% |
9.9% |
Net debt
|
Balance sheet at |
€m |
31 Mar 2020 |
31 Dec 2019 |
Financial debt |
9,076 |
6,886 |
Lease
debt |
3,954 |
4,029 |
Currency
hedge on financial debt |
-11 |
4 |
Accrued
interest |
-64 |
-62 |
Gross financial debt (A) |
12,955 |
10,857 |
Cash and
cash equivalents |
5,362 |
3,715 |
Marketable securities |
108 |
111 |
Cash
securities |
304 |
300 |
Deposits
(bonds) |
599 |
585 |
Bank
overdrafts |
-5 |
-4 |
Others |
-5 |
3 |
Net cash (B) |
6,363 |
4,710 |
Net debt (A) – (B) |
6,584 |
6,147 |
Unit cost: net cost per ASK
|
First Quarter |
|
2020 |
2019 |
Revenues (in €m) |
5,020 |
5,942 |
Income/(loss) from current operations (in €m) -/- |
815 |
286 |
Total
operating expense (in €m) |
5,835 |
6,228 |
Passenger network business – other revenues (in €m) |
-140 |
-167 |
Cargo
network business – other revenues (in €m) |
-68 |
-73 |
Third-party revenues in the maintenance business (in €m) |
-493 |
-554 |
Transavia - other revenues (in €m) |
-13 |
-4 |
Third-party revenues of other businesses (in €m) |
-7 |
-8 |
Net cost (in €m) |
5,115 |
5,422 |
Capacity produced, reported in ASK* |
67,295 |
75,586 |
Net cost per ASK (in € cents per ASK) |
7.60 |
7.17 |
Gross change |
|
6.0% |
Currency effect on net costs (in €m) |
|
12 |
Change at constant currency |
|
5.7% |
Fuel price effect (in €m) |
|
115 |
Net cost per ASK on a constant currency and fuel price
basis (in € cents per ASK) |
7.60 |
7.34 |
Change at constant currency and fuel price
basis |
|
+3.5% |
* 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
|
First Quarter |
|
2020 |
Change |
Revenue (in €m) |
3,016 |
-17.8% |
EBITDA
(in €m) |
-67 |
-290 |
Operating
result (en m€) |
-536 |
-287 |
Operating
margin (%) |
-17.8% |
-11.0 pt |
Operating
cash flow before WCR and restructuring cash out (in €m) |
-124 |
-316 |
Operating cash flow (before WCR and restructuring) margin |
-4.1% |
-9.3 pt |
KLM
Group |
First Quarter |
|
2020 |
Change |
Revenue (in €m) |
2,140 |
-9.7% |
EBITDA
(in €m) |
11 |
-199 |
Operating
result (en m€) |
-275 |
-228 |
Operating
margin (%) |
-12.9% |
-10.9 pt |
Operating
cash flow before WCR and restructuring cash out (in €m) |
-15 |
-202 |
Operating cash flow (before WCR and restructuring) margin |
-0.7% |
-8.6 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 31 March 2020
Aircraft type |
AF (incl. HOP) |
KL (incl. KLC & MP) |
Transavia |
Owned |
Finance lease |
Operating lease |
Total |
In operation |
Change / 31/12/19 |
B747-400 |
|
8 |
|
8 |
|
|
8 |
|
-4 |
B777-300 |
43 |
14 |
|
16 |
19 |
22 |
57 |
57 |
|
B777-200 |
25 |
15 |
|
25 |
1 |
14 |
40 |
40 |
|
B787-9 |
9 |
13 |
|
7 |
3 |
12 |
22 |
22 |
|
B787-10 |
|
5 |
|
4 |
1 |
|
5 |
5 |
1 |
A380-800 |
10 |
|
|
1 |
4 |
5 |
10 |
9 |
-1 |
A350-900 |
4 |
|
|
1 |
3 |
|
4 |
4 |
1 |
A340-300 |
4 |
|
|
4 |
|
|
4 |
4 |
|
A330-300 |
|
5 |
|
|
|
5 |
5 |
5 |
|
A330-200 |
15 |
8 |
|
11 |
|
12 |
23 |
23 |
|
Total Long-Haul |
110 |
68 |
0 |
77 |
31 |
70 |
178 |
169 |
-7 |
B737-900 |
|
5 |
|
2 |
|
3 |
5 |
5 |
|
B737-800 |
|
31 |
74 |
29 |
10 |
66 |
105 |
105 |
1 |
B737-700 |
|
16 |
7 |
3 |
5 |
15 |
23 |
23 |
|
A321 |
20 |
|
|
11 |
|
9 |
20 |
20 |
|
A320 |
44 |
|
|
3 |
5 |
36 |
44 |
43 |
|
A319 |
33 |
|
|
20 |
|
13 |
33 |
33 |
|
A318 |
18 |
|
|
18 |
|
|
18 |
18 |
|
Total Medium-Haul |
115 |
52 |
81 |
86 |
20 |
142 |
248 |
247 |
1 |
ATR72-600 |
2 |
|
|
|
|
2 |
2 |
|
-2 |
ATR72-500 |
|
|
|
|
|
|
|
|
|
ATR42-500 |
|
|
|
|
|
|
|
|
|
Canadair
Jet 1000 |
14 |
|
|
14 |
|
|
14 |
14 |
|
Canadair
Jet 700 |
11 |
|
|
11 |
|
|
11 |
10 |
|
Embraer
190 |
16 |
32 |
|
9 |
12 |
27 |
48 |
48 |
1 |
Embraer
175 |
|
17 |
|
3 |
14 |
|
17 |
17 |
|
Embraer
170 |
15 |
|
|
10 |
|
5 |
15 |
15 |
|
Embraer
145 |
16 |
|
|
16 |
|
|
16 |
11 |
-2 |
Total Regional |
74 |
49 |
0 |
63 |
26 |
34 |
123 |
115 |
-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 |
301 |
173 |
81 |
232 |
77 |
246 |
555 |
537 |
-9 |
1 2019 results restated for LLP componentization accounting
change and EU passenger compensation reclassification between
revenues and external expenses
2 Passenger unit revenue is the aggregate of Passenger network
and Transavia unit revenues, change at constant currency
3 Including: secured financing & lease debt (principal &
interests) payments, hybrid bond in October 2020 0.4 billion euros
and a Cargo claim expected in the third quarter 2020 for around 0.4
billion euros
1 The definition of ROCE has been revised to
take into account the seasonal effects of the activity.
- Q1_2020 Press release EN final
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