Positive operating result at 386 million euros
Net income at 324 million euros, showing a 1.8 billion euros improvement compared to the same
quarter last year
Positive 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 2021
The Group has already successfully achieved 2.8 billion euros of equity measures of the up to
4 billion announced last February
Air 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 euros
Net 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
Mr. Benjamin Smith, Group CEO, said:
“The strong recovery we see this summer is putting the entire aviation industry to the test. While Air France-KLM had prepared for close to pre-pandemic demand levels, our airlines are not immune to the major operational challenges taking place around the world. Customer satisfaction is at the top of our priorities and we know we have not fully been able to deliver the quality of service that has come to be expected from us. I would like to thank our customers for their trust and patience. I would also like to express my gratitude towards our employees for their unwavering commitment, even in difficult situations. It is thanks to their dedication and sense of collective responsibility that we are able to post better-than-expected revenues and results this quarter. Going forward we will continue to implement our strategy in order to further transform our organization. We aim to increase our resilience to the changes of our environment while continuing to accelerate our efforts to make our Group and aviation as a whole more sustainable.”
Outlook:
Context:
Air France and KLM are among the most active airlines to accommodate the travel recovery, with a second quarter capacity for Network passenger activity at an index of 82%. Despite the summer growth anticipation efforts since January, operational difficulties arose in Europe and the United States, mainly due to labour shortages at airports.
Air France and KLM are doing their utmost to mitigate these challenges and has prioritised safeguarding the trust of our customers. For this quarter, it resulted into 70 million euros additional compensation costs.
Capacity
In this recovery context, the Group expects the capacity in Available Seat Kilometers for Air France- KLM Network passenger activity at an index of:
80% to 85% in the Third quarter of 2022
85% to 90% in the Fourth quarter of 2022
Circa 80% for the Full Year 2022
All indices compared to the respective period of 2019.
The capacity for Transavia in Available Seat Kilometers is expected at an index above 100 for the full year and in the third and fourth quarter 2022 compared to 2019.
Yield
The yield environment should remain high for the rest of 2022 with a strong summer demand resulting in yield levels above 2019.
Expected operating result
Significantly positive in the third quarter
Positive in 2022, for the first time since 2019
