Yahoo FinanceAir France-KLM First Quarter 2021 results
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6 May 2021
First Quarter 2021 |
Over the first three months of the year, the Group continued to be negatively impacted by travel restrictions as the whole industry:
Revenue at 2.2 billion euros, down 57% compared to last year
EBITDA loss at -0.6 billion euros, mitigated due to strict cost control and national partial activity schemes
Operating result at -1.2 billion euros, down 0.4 billion euros compared to last year
Net income at -1.5 billion euros, after taking interest charges into account
Net debt at 12.5 billion euros, up 1.5 billion compared to end of 2020
At 31 March 2021, the Group has 8.5 billion euros of liquidity and credit lines at disposal
Early April 2021, first set of balance sheet strengthening measures successfully executed resulting in an increase of €4bn equity and improved cash position by €1bn
OUTLOOK
Due to the stricter lockdown in France until, at least beginning of May, continuation of the lockdown in the Netherlands and travel restrictions worldwide still in place, the Group anticipates the beginning of the second quarter to be similar to the first quarter whereby the customer booking behaviour is still short-term oriented.
The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination. In the US, domestic demand is recovering rapidly due to the speed of the vaccination process.
In this context, the Group expects capacity in Available Seat kilometers circa index 50% for Air France-KLM in the Second quarter 2021 compared to 2019 for the Network passenger activity.
During the second half of the second quarter the Group will progressively ramp up capacity given the vaccination deployment in Europe.
For the Third quarter the Group foresees a capacity in Available Seat kilometers index in the range of 55% to 65% compared to 2019 for the Network passenger activity thanks to estimated higher demand.
The Air France-KLM Group continues to work to strengthen its balance sheet. Additional measures of equity and quasi-equity instruments are currently under consideration. Extraordinary resolutions will be presented at the next Annual General Meeting, aiming to give the Board of Directors great flexibility to restore equity.
Air France-KLM Group | First Quarter | |
2021 | Change1 | |
Passengers (thousands) | 4,819 | -73.4% |
Passenger Unit revenue per ASK2 (€ cts) | 2.90 | -48.8% |
Operating result (€m) | -1,179 | -364 |
Net income – Group part (€m) | -1,481 | +320 |
Adj. operating free cash flow (€m) | -1,344 | -519 |
Net debt at end of period (€m)³ | 12,553 | 1,504 |
The Board of Directors of Air France-KLM, chaired by Ms. Anne-Marie Couderc, met on May 5, 2021 to approve the financial statements for the First quarter 2021. Group CEO Mr. Benjamin Smith said:
“A year into the COVID crisis, lockdown measures and travel restrictions in our home markets and around the world continue to strongly impact the Group’s activity. In this ever-challenging environment, the Group has nevertheless shown its resilience, maintaining a strict control of its capacity and costs” said Benjamin Smith, CEO of Air France – KLM. “The success of the first set of capital-strengthening measures completed in April, allows us to look forward to the summer season with greater confidence, hoping that the progress of the vaccination roll-out worldwide and the implementation of travel passes will allow borders to reopen and traffic to recover. In the meantime, we have accelerated the implementation of our transformation plan to build a solid post-crisis model. This includes the execution of our voluntary departure plans, which are progressing as expected. In the coming months, we will continue our strict cost control approach while reinforcing our sustainability commitments, in line with our ambitious environmental roadmap."
Business review
Network: Passenger traffic still suffering from travel restrictions, partly compensated by strong Cargo performance
Network | First Quarter | ||
2021 | Change | Change | |
Total revenues (€m) | 1,858 | -56.6% | -55.5% |
Scheduled revenues (€m) | 1,712 | -57.9% | -56.8% |
Operating result (€m) | -1,060 | -331 | -349 |
First quarter 2021 revenues decreased by 55.5% at constant currency to 1.9 billion euros. The operating result amounted to -1.1 billion euros, a 350 million euros decrease at constant currency compared to last year. Ongoing focus on cash flow by continuing the deferral of payments, cost savings measures, negotiations with suppliers on payment terms, staff reductions and partial activity schemes.
Passenger network: Recovery in Q1 hampered by tough travel restrictions worldwide, with North America, Latin America and Asia as the most impacted areas
First Quarter | |||
Passenger network | 2021 | Change | Change |
Passengers (thousands) | 4,467 | -71.7% | |
Capacity (ASK m) | 33,586 | -46.2% | |
Traffic (RPK m) | 13,433 | -73.1% | |
Load factor | 40.0% | -39.9 pt | |
Total passenger revenues (€m) | 1,019 | -73.3% | -72.7% |
Scheduled passenger revenues (€m) | 965 | -73.7% | -73.1% |
Unit revenue per ASK (€ cts) | 2.87 | -51.2% | -49.9% |
Last year March the Group was already heavily impacted by the Covid-19 crisis. The passenger network activity in the First quarter was reduced at 54% of last year’s level while the number of passengers decreased by 72%. Compared with the First quarter of 2019 the Available Seat Kilometers were at index 48%. Thanks to the Group’s balanced network and strong Cargo business the passenger network activity level was above the estimated capacity level guided during the Fourth quarter 2020 results presentation and the Group operated more capacity than their competitors.
During the First quarter, the Group added two Embraer 195 E2 to the fleet and welcomed as well one Airbus 350-900 and two Boeing 777-300. With these investments the Group continue to build an efficient fleet and shows its sustainable commitment.
Cargo: Strong performance, with continuation of capacity shortage
First Quarter | |||
Cargo business | 2021 | Change | Change |
Tons (thousands) | 268 | +10.4% | |
Capacity (ATK m) | 2,688 | -15.8% | |
Traffic (RTK m) | 2,074 | +13.2% | |
Load factor | 77.2% | +19.7 pt | |
Total Cargo revenues (€m) | 839 | +80.0% | +87.5% |
Scheduled cargo revenues (€m) | 748 | +87.5% | +95.2% |
Unit revenue per ATK (€ cts ) | 27.84 | +122.7% | +131.7% |
Limited air cargo capacity together with high demand resulted in the First quarter again in a high loadfactor and high yield in the cargo industry. Despite a reduction in capacity of -15.8%, primarily driven by the reduction in belly capacity of passenger aircraft, the Group was able to increase the transported Tons and showed unit revenue per ATK up 131.7% against constant currency versus last year.
Since the start of the Covid-19 vaccin transportation, Air France-KLM Cargo has transported millions Covid-19 vaccines to more than 30 destinations worldwide. During the coming months the Group estimates a steady increase in the number of vaccine shipments.
Transavia: Operating result –120 million euros as impacted by Covid-19 crisis
First Quarter | ||
Transavia | 2021 | Change |
Passengers (thousands) | 352 | -85.0% |
Capacity (ASK m) | 1,012 | -79.3% |
Traffic (RPK m) | 583 | -86.9% |
Load factor | 57.6% | -33.5 pt |
Total passenger revenues (€m) | 37 | -84.8% |
Unit revenue per ASK (€ cts) | 3.68 | -21.6% |
Unit cost per ASK (€ cts) | 15.56 | +144.3% |
Operating result (€m) | -120 | -38 |
The First quarter operating result ended -38 million euros lower compared to last year at an operational loss of -120 million euros, as a result of the ongoing Covid-19 crisis with strict border restrictions in Europe and North Africa.
First quarter activity level was only around 20% of last year’s production, with a unit revenue down -21.6% compared to 2020. Load factor at 57.6% was impacted by travel restrictions imposed. The production level of Transavia France was slightly higher at and index of 26 compared to 2020, thanks to the start of domestic routes.
Transavia plan to grow is still valid, well positioned to capture the leisure traffic recovery foreseen in the coming months towards the end of the summer, being a major opportunity for the Group’s competitiveness gain. The adding of eight Boeing 737-800 aircraft to Transavia France fleet in the first quarter is part of this plan.
Maintenance: Operating result stabilizing
First Quarter | |||
Maintenance | 2021 | Change | Change |
Total revenues (€m) | 622 | -45.3% | |
Third-party revenues (€m) | 259 | -47.5% | -40.3% |
Operating result (€m) | -8 | -5 | 9 |
Operating margin (%) | -1.3% | -0.9 pt | +0.4 pt |
The First quarter operating result stood at -8 million euros, a decrease of 5 million euros, against a constant currency an increase of 9 million euros.
During the First quarter 2021, third-party revenues declined by 47.5%. This decrease is explained not only by the COVID crisis starting mid-March 2020, but also by the work made by the Maintenance business to reduce the airlines costs for example through use of greentime to avoid engine shop visits as much as possible. Despite this drop in external revenues the operating margin stabilized versus the First quarter 2020.
Salary cost decreased thanks to partial activity schemes and a sharp drop in other cost was visibile during the First quarter versus Last year due to a reduced number of shop visits of Air France-KLM Group airlines.
Air France-KLM Group: EBITDA decreased by €0.6bn while revenues down €2.9bn in Q1
First Quarter | |||
2021 | Change | Change | |
Capacity (ASK m) | 34,598 | -48.6% | |
Traffic (RPK m) | 14,015 | -74.2% | |
Passenger unit revenue per ASK (€ cts) | 3.45 | -40.5% | -39.0% |
Group unit revenue per ASK (€ cts) | 5.06 | -20.8% | -18.8% |
Group unit cost per ASK (€ cts) at constant fuel | 8.47 | +11.4% | +20.7% |
Revenues (€m) | 2,161 | -56.9% | -55.5% |
EBITDA (€m) | -627 | -566 | -566 |
Operating result (€m) | -1,179 | -364 | -366 |
Operating margin (%) | -54.6% | -38.3 pt | -37.8 pt |
Net income - Group part (€m) | -1,481 | +320 | |
In the First quarter 2021, the Air France-KLM Group posted an operating result of -627 million euros, down by 566 million euros compared to last year.
Net income amounted to -1.5 billion euros in the First quarter 2021, an increase of 320 million euros compared to last year. The net income result is mainly driven by the operational result and the cost of financial debt.
The net income of the first quarter 2020 included 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.
The First quarter 2021 unit cost increased by 20.7%, primarily caused by Covid-19 related capacity reductions
Group net employee costs were down 39% in the first quarter of 2021 compared to last year, supported by staff reductions and partial activity schemes. The average number of FTEs (Full Time Equivalent) stood at 76,500 in March 2021, down 400 FTE compared to December 2020.
Working capital slightly negative, net debt increased by €1.5bn
First quarter | ||
In € million | 2021 | Change |
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m) | -745 | -574 |
Cash out related to Voluntary Departure Plans (€m) | -45 | -36 |
Change in Working Capital Requirement (WCR) (€m) | -92 | -554 |
Net cash flow from operating activities (€m) | -882 | -1,164 |
Net investments* (€m) | -246 | +612 |
Operating free cash flow (€m) | -1,128 | -552 |
Repayment of lease debt | -216 | +33 |
Adjusted operating free cash flow** | -1,344 | -519 |
* 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 in First quarter 2021 of -1.3 billion euros, a decrease of 519 million euros compared to last year. Mainly explained by a net cash flow from operating activities decline of 1.2 billion euros, partly offset by a reduction in net investments of 612 million euros.
Deferred state tax liabilities and employee related liabilities in combination with continuing focus on working capital management the Group was able to mitigate the negative change in working capital to -92 million euros in the first quarter.
Since the beginning of the crisis, Air France, KLM and Transavia proceeded 2.8 billion euros of refunds to customers, of which 550 million euros during the First quarter 2021.
In € million | 31 Mar 2021 | 31 Dec 2020 |
Net debt | 12,553 | 11,049 |
EBITDA trailing 12 months | -2,255 | -1,689 |
Net debt/EBITDA trailing 12 months | na | na |
Air France and KLM continued to be negatively impacted by travel restrictions
First Quarter | ||
2021 | Change | |
Air France Group Operating result (€m) | -840 | -304 |
Operating margin (%) | -62.6% | -44.9 pt |
KLM Group Operating result (€m) | -337 | -61 |
Operating margin (%) | -36.2% | -23.3 pt |
OUTLOOK
Due to the stricter lockdown in France until, at least beginning of May, continuation of the lockdown in the Netherlands and travel restrictions worldwide still in place, the Group anticipates a difficult start of the Second quarter whereby the customer booking behaviour is still short-term oriented.
The key to reduce travel restrictions and reopen borders is a rapid roll-out of wide-scale vaccination. The vaccination pace in Europe is slower than in the US where the domestic demand recovers quickly thanks to the high speed vaccination process.
In this context the Group expects capacity in Available Seat kilometers circa index 50% for Air France-KLM in the Second quarter 2021 compared to 2019 for the Network passenger activity.
During the second half of the second quarter the Group will progressively ramp up capacity given the vaccination deployment in Europe.
For the Third quarter the Group foresees a capacity in Available Seat kilometers between index 55% and 65% compared to 2019 for the Network passenger activity thanks to estimated higher demand.
At 31 March 2021, the Group has a 8.5 billion euros of liquidity and credit lines at disposal. This level can be considered comfortable, given the expected recovery in the summer, despite the cash requirements for 2021 which include:
Q2 2021 EBITDA expected to be in the same range as EBITDA Q1 2021
Capex spending inferior at 2.0 billion euros in 2021, but largely funded for fleet investments
Restructuring cash out at 0.5 billion euros in 2021, part of which is financed by the associated reduction in the wage bill
A first set of capital strengthening measures was successfully executed in April and resulted in an increase in equity of 4 billion euros and cash of 1 billion euros.
The Air France-KLM group continues to work on strengthening its balance sheet. Additional equity and quasi-equity measures are currently under consideration. Extraordinary resolutions will be presented at the next Annual General Meeting, aiming to give the Board of Directors great flexibility to restore equity and initiate the gradual refinancing of state aid and restore leverage ratio.
******
The first quarter 2021 accounts are not audited by the Statutory Auditors.
The results presentation is available at www.airfranceklm.com on 6 May 2021 from 7:15 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO) will be held on 6 May 2021 at 08.30 CET.
To connect to the conference call, please dial:
France: Local +33 (0)1 76 77 25 07
Netherlands: Local +31 (0)20 703 8259
UK: Local +44 (0)330 336 9434
US: Local +1 720-543-0206
Confirmation code: 6657799
Investor Relations Press
Olivier Gall Michiel Klinkers
+33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 00
olgall@airfranceklm.com Michiel.klinkers@airfranceklm.com
Income Statement
First quarter | |||
€m | 2021 | 2020 | Change |
Sales | 2,161 | 5,020 | -56.9% |
Other revenues | 0 | 0 | nm |
Revenues | 2,161 | 5,020 | -56.9% |
Aircraft fuel | -463 | -1,185 | -60.9% |
Chartering costs | -69 | -89 | -22.5% |
Landing fees and en route charges | -215 | -387 | -44.4% |
Catering | -58 | -164 | -64.6% |
Handling charges and other operating costs | -191 | -359 | -46.8% |
Aircraft maintenance costs | -345 | -614 | -43.8% |
Commercial and distribution costs | -59 | -194 | -69.6% |
Other external expenses | -298 | -404 | -26.2% |
Salaries and related costs | -1,166 | -1,916 | -39.1% |
Taxes other than income taxes | -41 | -56 | -26.8% |
Other income and expenses | 117 | 287 | -59.2% |
EBITDA | -627 | -61 | +927.9% |
Amortization, depreciation and provisions | -552 | -754 | -26.8% |
Income from current operations | -1,179 | -815 | +44.7% |
Sales of aircraft equipment | -3 | -1 | +200.0% |
Other non-current income and expenses | -4 | -45 | -91.1% |
Income from operating activities | -1,186 | -861 | +37.8% |
Cost of financial debt | -189 | -102 | +85.3% |
Income from cash and cash equivalent | 1 | 7 | -85.7% |
Net cost of financial debt | -188 | -95 | +98.3% |
Other financial income and expenses | -90 | -666 | -86.5% |
Income before tax | -1,464 | -1,622 | -9.7% |
Income taxes | -11 | -173 | -93.6% |
Net income of consolidated companies | -1,475 | -1,795 | -17.8% |
Share of profits (losses) of associates | -7 | -8 | -12.5% |
Net income for the period | -1,482 | -1,803 | -17.8% |
Minority interest | -1 | -2 | -50% |
Net income for the period – Group part | -1,481 | -1,801 | -17.8% |
Consolidated Balance Sheet
Assets | 31 Mar 2021 | 31 Dec 2020 |
In million euros | ||
Goodwill | 221 | 215 |
Intangible assets | 1,259 | 1,230 |
Flight equipment | 10,800 | 11,031 |
Other property, plant and equipment | 1,476 | 1,548 |
Right-of-use assets | 4,795 | 4,678 |
Investments in equity associates | 223 | 230 |
Derivatives assets long term | 101 | 92 |
Pension assets | 551 | 211 |
Other financial assets | 808 | 795 |
Deferred tax assets | 257 | 282 |
Other non-current assets | 3 | 4 |
Total non-current assets | 20,494 | 20,316 |
Other short-term financial assets | 615 | 607 |
Derivatives assets short term | 262 | 160 |
Inventories | 529 | 543 |
Trade receivables | 1,340 | 1,248 |
Other current assets | 1,017 | 914 |
Cash and cash equivalents | 5,059 | 6,423 |
Total current assets | 8,822 | 9,895 |
Total assets | 29,316 | 30,211 |
Liabilities and equity | 31 Mar 2021 | 31 Dec 2020 |
In million euros | ||
Issued capital | 429 | 429 |
Additional paid-in capital | 4,139 | 4,139 |
Treasury shares | -25 | -25 |
Perpetual | 0 | 0 |
Reserves and retained earnings | -11,045 | -9,970 |
Equity attributable to equity holders of Air France-KLM | -6,502 | -5,427 |
Non-controlling interests | 9 | 9 |
Total Equity | -6,493 | -5,418 |
Pension provisions | 2,105 | 2,147 |
Other provisions | 3,780 | 3,670 |
Long-term debt | 14,238 | 14,171 |
Lease financial debt | 2,599 | 2,425 |
Derivatives liabilities long term | 56 | 122 |
Deferred tax liabilities | 136 | 22 |
Other non-current liabilities | 1,760 | 1,294 |
Total non-current liabilities | 24,674 | 23,851 |
Provisions | 1,342 | 1,337 |
Current portion of long-term debt | 1,325 | 1,318 |
Current portion of lease financial debt | 831 | 839 |
Derivatives liabilities short term | 92 | 363 |
Trade payables | 1,372 | 1,435 |
Deferred revenue on ticket sales | 2,233 | 2,394 |
Frequent flyer programs | 917 | 916 |
Other current liabilities | 3,019 | 3,175 |
Bank overdrafts | 4 | 1 |
Total current liabilities | 11,135 | 11,778 |
Total equity and liabilities | 29,316 | 30,211 |
Statement of Consolidated Cash Flows from 1st Jan until 31 March 2021
€m | 31 Mar 2021 | 31 Mar 2020 |
Net income from continuing operations | -1,482 | -1,803 |
Amortization, depreciation and operating provisions | 553 | 754 |
Financial provisions | 27 | 51 |
Loss (gain) on disposals of tangible and intangible assets | 3 | 1 |
Loss (gain)on disposals of subsidiaries and associates | 0 | 0 |
Derivatives – non monetary result | -41 | 432 |
Unrealized foreign exchange gains and losses, net | 125 | 142 |
Impairment | 8 | 21 |
Other non-monetary items | 3 | 48 |
Share of (profits) losses of associates | 7 | 8 |
Deferred taxes | 7 | 166 |
Financial Capacity | -790 | -180 |
(Increase) / decrease in inventories | 8 | 22 |
(Increase) / decrease in trade receivables | -72 | 596 |
Increase / (decrease) in trade payables | -85 | -309 |
Increase / (decrease) in advanced ticket sales | -153 | 179 |
Change in other receivables and payables | 210 | -26 |
Change in working capital requirements | -92 | 462 |
Net cash flow from operating activities | -882 | 282 |
Purchase of property, plant and equipment and intangible assets | -466 | -869 |
Proceeds on disposal of property, plant and equipment and intangible assets | 220 | 11 |
Proceeds on disposal of subsidiaries, of shares in non-controlled entities | 0 | 356 |
Acquisition of subsidiaries, of shares in non-controlled entities | -4 | -1 |
Dividends received | 0 | 0 |
Decrease (increase) in net investments, more than 3 months | 1 | 0 |
Net cash flow used in investing activities | -249 | -503 |
Increase of equity due to new convertible bond | 0 | 0 |
Perpetual (including premium) | 0 | 0 |
Issuance of debt | 302 | 2,710 |
Repayment on financial debt | -331 | -588 |
Payments on lease debt | -216 | -249 |
Decrease (increase ) in loans, net | 2 | -3 |
Dividends and coupons on perpetual paid | 0 | 0 |
Net cash flow from financing activities | -243 | 1,870 |
Effect of exchange rate on cash and cash equivalents and bank overdrafts | 7 | -3 |
Change in cash and cash equivalents and bank overdrafts | -1,367 | 1,646 |
Cash and cash equivalents and bank overdrafts at beginning of period | 6,422 | 3,711 |
Cash and cash equivalents and bank overdrafts at end of period | 5,055 | 5,357 |
Change in treasury of discontinued operations | 0 | 0 |
Return on capital employed (ROCE)31
In million euros | 31 Mar 2021 | 31 Dec 2020 | 30 Sep 2020 | 30 June 2020 | 31 Mar 2020 | 31 Dec 2019 | 30 Sep 2019 | 30 June 2019 |
Goodwill and intangible assets | 1,479 | 1,445 | 1,470 | 1,500 | 1,564 | 1,522 | 1,481 | 1,465 |
Flight equipment | 10,800 | 11,031 | 11,009 | 10,919 | 11,465 | 11,334 | 10,829 | 10,747 |
Other property, plant and equipment | 1,476 | 1,548 | 1,535 | 1,551 | 1,579 | 1,580 | 1,554 | 1,530 |
Right of use assets | 4,795 | 4,678 | 4,789 | 4,938 | 5,119 | 5,173 | 5,300 | 5,470 |
Investments in equity associates | 223 | 230 | 224 | 267 | 299 | 307 | 310 | 305 |
Financial assets excluding marketable securities and financial deposits | 146 | 146 | 135 | 133 | 142 | 140 | 131 | 125 |
Provisions, excluding pension, cargo litigation and restructuring | -4,083 | -3,922 | -4,001 | -4,130 | -4,190 | -4,058 | -4,101 | -3,888 |
WCR, excluding market value of derivatives | -6,410 | -6,505 | -6,894 | -6,779 | -6,650 | -6,310 | -6,285 | -6,957 |
Capital employed | 8,426 | 8,651 | 8,267 | 8,399 | 9,328 | 9,688 | 9,219 | 8,797 |
Average capital employed (A) | 8,436 | 9,258 | ||||||
Adjusted results from current operations | -4,913 | 612 | ||||||
- Dividends received | 0 | -2 | ||||||
- Share of profits (losses) of associates | -56 | 12 | ||||||
- Normative income tax | 1,472 | -155 | ||||||
Adjusted result from current operations after tax (B) | -3,497 | 467 | ||||||
ROCE, trailing 12 months (B/A) | -41.5% | 5.0% | ||||||
Net debt
Balance sheet at | ||
€m | 31 Mar 2021 | 31 Dec 2020 |
Financial debt | 15,461 | 15,388 |
Repo on triple A bonds | -83 | -84 |
Lease debt | 3,347 | 3,184 |
Currency hedge on financial debt | 15 | 27 |
Accrued interest | -174 | -107 |
Gross financial debt (A) | 18,566 | 18,408 |
Cash and cash equivalents | 5,059 | 6,423 |
Marketable securities | 215 | 193 |
Cash securities | 286 | 309 |
Bonds AAA | 540 | 518 |
Bank overdrafts | -4 | -1 |
Others | 0 | 1 |
Repo on triple A bonds | -83 | -84 |
Net cash (B) | 6,013 | 7,359 |
Net debt (A) – (B) | 12,553 | 11,049 |
Adjusted operating free cash flow
First quarter | ||
€m | 2021 | 2020 |
Net cash flow from operating activities, continued operations | -882 | 282 |
Investment in property, plant, equipment and intangible assets | -466 | -869 |
Proceeds on disposal of property, plant, equipment and intangible assets | 220 | 11 |
Operating free cash flow | -1,128 | -576 |
Payments on lease debt | -216 | -249 |
Adjusted operating free cash flow | -1,344 | -825 |
Operating cash burn
| First quarter | |
2021 | 2020 | |
EBITDA | - 627 | -61 |
Provisions (CO2 and other) | 42 | 6 |
Correction of spare parts inventory | 1 | 1 |
Addition to pension provisions | 75 | 77 |
Reversal to pension provisions (cash-out) | -43 | -48 |
Payment linked with shares | 0 | -2 |
Sales of tangible and intangible assets (excluding aeronauticals) | -39 | -2 |
Dividend received | 0 | 0 |
Income from operation activities - cash impact | -591 | -29 |
Restructuring costs | -45 | -9 |
Other non-current income and expenses | 0 | -1 |
Cost of financial debt | -168 | -95 |
Financial income | -4 | 2 |
Realized foreign exchange gain/loss | 27 | -7 |
Termination of trading hedges - cash | -6 | -11 |
Current income tax | -3 | -7 |
Other financial charges & expenses - cash | 0 | -23 |
Other elements | 0 | 0 |
Financial capacity | -790 | -180 |
Unit cost: net cost per ASK
First quarter | ||
2021 | 2020 | |
Revenues (in €m) | 2,161 | 5,020 |
Income/(loss) from current operations (in €m) -/- | 1,179 | 815 |
Total operating expense (in €m) | 3,341 | 5,835 |
Passenger network business – other revenues (in €m) | -55 | -140 |
Cargo network business – other revenues (in €m) | -91 | -67 |
Third-party revenues in the maintenance business (in €m) | -260 | -493 |
Transavia - other revenues (in €m) | 0 | -13 |
Third-party revenues of other businesses (in €m) | -7 | -7 |
Net cost (in €m) | 2,929 | 5,114 |
Capacity produced, reported in ASK* | 34,598 | 67,295 |
Net cost per ASK (in € cents per ASK) | 8.47 | 7.60 |
Gross change | 11.4% | |
Currency effect on net costs (in €m) | -110 | |
Change at constant currency | 13.8% | |
Fuel price effect (in €m) adjusted for 2019 capacity | -286 | |
Net cost per ASK on a constant currency and fuel price basis (in € cents per ASK) | 8.47 | 7.01 |
Change at constant currency and fuel price basis | +20.7% | |
* 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 | ||
2021 | Change | |
Revenue (in €m) | 1,341 | -55.5% |
EBITDA (in €m) | -512 | -445 |
Operating result (en m€) | -840 | -304 |
Operating margin (%) | -62.6% | -44.9 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | -622 | -497 |
Operating cash flow (before WCR and restructuring) margin | -46.4% | -42.2 pt |
KLM Group | First quarter | |
2021 | Change | |
Revenue (in €m) | 930 | -56.6% |
EBITDA (in €m) | -111 | -122 |
Operating result (en m€) | -337 | -61 |
Operating margin (%) | -36.2% | -23.3 pt |
Operating cash flow before WCR and restructuring cash out (in €m) | -113 | -98 |
Operating cash flow (before WCR and restructuring) margin | -12.2% | -11.5 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 2021
Aircraft type | AF | KL | Transavia | Owned | Finance lease | Operating lease | Total | In operation | Change / 31/12/20 |
B747-400 | 1 | 1 | 1 | ||||||
B777-300 | 43 | 16 | 20 | 17 | 22 | 59 | 59 | 2 | |
B777-200 | 23 | 15 | 26 | 12 | 38 | 36 | -4 | ||
B787-9 | 10 | 13 | 5 | 6 | 12 | 23 | 23 | ||
B787-10 | 6 | 3 | 3 | 6 | 5 | ||||
A380-800 | 9 | 2 | 3 | 4 | 9 | ||||
A350-900 | 7 | 1 | 5 | 1 | 7 | 7 | 1 | ||
A340-300 | |||||||||
A330-300 | 5 | 5 | 5 | 5 | |||||
A330-200 | 15 | 8 | 11 | 12 | 23 | 21 | |||
Total Long-Haul | 107 | 64 | 0 | 69 | 34 | 68 | 171 | 156 | -1 |
B737-900 | 5 | 5 | 5 | 5 | |||||
B737-800 | 31 | 83 | 29 | 10 | 75 | 114 | 114 | 8 | |
B737-700 | 15 | 5 | 3 | 4 | 13 | 20 | 17 | -3 | |
A321 | 20 | 11 | 9 | 20 | 20 | ||||
A320 | 44 | 4 | 4 | 36 | 44 | 44 | |||
A319 | 32 | 13 | 19 | 32 | 31 | -2 | |||
A318 | 18 | 8 | 10 | 18 | 18 | ||||
Total Medium-Haul | 114 | 51 | 88 | 73 | 18 | 162 | 253 | 249 | 3 |
ATR72-600 | |||||||||
ATR72-500 | |||||||||
ATR42-500 | |||||||||
Canadair Jet 1000 | 14 | 14 | 14 | 14 | |||||
Canadair Jet 700 | 8 | 8 | 8 | 8 | -1 | ||||
Embraer 195 E2 | 2 | 2 | 2 | 2 | 2 | ||||
Embraer 190 | 17 | 32 | 11 | 10 | 28 | 49 | 49 | ||
Embraer 175 | 17 | 3 | 14 | 17 | 17 | ||||
Embraer 170 | 15 | 10 | 5 | 15 | 15 | ||||
Embraer 145 | 13 | 13 | 13 | ||||||
Total Regional | 67 | 51 | 0 | 59 | 24 | 35 | 118 | 105 | 1 |
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 | 290 | 170 | 88 | 207 | 76 | 265 | 548 | 516 | 3 |
FIRST QUARTER 2021 TRAFFIC
Passenger network activity*
Q1 | |||
Total Passenger network* | 2021 | 2020 | Variation |
Passengers carried (‘000s) | 4,467 | 15,766 | (71.7%) |
Revenue pax-kilometers (m RPK) | 13,433 | 49,854 | (73.1%) |
Available seat-kilometers (m ASK) | 33,588 | 62,425 | (46.2%) |
Load factor (%) | 40.0% | 79.9% | (39.9) |
Long-haul | |||
Passengers carried (‘000s) | 1,569 | 5,517 | (71.6%) |
Revenue pax-kilometers (m RPK) | 10,965 | 41,492 | (73.6%) |
Available seat-kilometers (m ASK) | 29,329 | 51,229 | (42.8%) |
Load factor (%) | 37.4% | 81.0% | (43.6) |
North America | |||
Passengers carried (‘000s) | 274 | 1,483 | (81.5%) |
Revenue pax-kilometers (m RPK) | 2,031 | 10,580 | (80.8%) |
Available seat-kilometers (m ASK) | 7,065 | 13,317 | (46.9%) |
Load factor (%) | 28.7% | 79.4% | (50.7) |
Latin America | |||
Passengers carried (‘000s) | 195 | 831 | (76.6%) |
Revenue pax-kilometers (m RPK) | 1,864 | 7,824 | (76.2%) |
Available seat-kilometers (m ASK) | 5,293 | 9,304 | (43.1%) |
Load factor (%) | 35.2% | 84.1% | (48.9) |
Asia / Pacific | |||
Passengers carried (‘000s) | 160 | 1,113 | (85.6%) |
Revenue pax-kilometers (m RPK) | 1,332 | 9,622 | (86.2%) |
Available seat-kilometers (m ASK) | 6,078 | 12,110 | (49.8%) |
Load factor (%) | 21.9% | 79.5% | (57.5) |
Africa / Middle East | |||
Passengers carried (‘000s) | 531 | 1,188 | (55.3%) |
Revenue pax-kilometers (m RPK) | 2,782 | 6,881 | (59.6%) |
Available seat-kilometers (m ASK) | 5,967 | 8,663 | (31.1%) |
Load factor (%) | 46.6% | 79.4% | (32.8) |
Caribbean / Indian Ocean | |||
Passengers carried (‘000s) | 408 | 902 | (54.7%) |
Revenue pax-kilometers (m RPK) | 2,957 | 6,586 | (55.1%) |
Available seat-kilometers (m ASK) | 4,926 | 7,836 | (37.1%) |
Load factor (%) | 60.0% | 84.0% | (24.0) |
Short and Medium-haul | |||
Passengers carried (‘000s) | 2,899 | 10,248 | (71.7%) |
Revenue pax-kilometers (m RPK) | 2,467 | 8,362 | (70.5%) |
Available seat-kilometers (m ASK) | 4,260 | 11,195 | (62.0%) |
Load factor (%) | 57.9% | 74.7% | (16.8) |
* Air France and KLM
Transavia activity
Q1 | |||
Transavia | 2021 | 2020 | Variation |
Passengers carried (‘000s) | 352 | 2,349 | (85.0%) |
Revenue pax-kilometers (m RPK) | 583 | 4,456 | (86.9%) |
Available seat-kilometers (m ASK) | 1,011 | 4,892 | (79.3%) |
Load factor (%) | 57.6% | 91.1% | (33.5) |
Total group passenger activity**
Q1 | |||
Total group** | 2021 | 2020 | Variation |
Passengers carried (‘000s) | 4,819 | 18,115 | (73.4%) |
Revenue pax-kilometers (m RPK) | 14,015 | 54,310 | (74.2%) |
Available seat-kilometers (m ASK) | 34,600 | 67,317 | (48.6%) |
Load factor (%) | 40.5% | 80.7% | (40.2) |
** Air France, KLM and Transavia
Cargo activity
Q1 | |||
Total Group | 2021 | 2020 | Variation |
Revenue tonne-km (m RTK) | 2,073 | 1,835 | 13.0% |
Available tonne-km (m ATK) | 2,688 | 3,198 | (16.0%) |
Load factor (%) | 77.1% | 57.4% | 19.8 |
Air France activity
Q1 | |||
Total Passenger network activity | 2021 | 2020 | Variation |
Passengers carried (‘000s) | 3,046 | 9,490 | (67.9%) |
Revenue pax-kilometers (m RPK) | 8,569 | 29,200 | (70.7%) |
Available seat-kilometers (m ASK) | 16,417 | 36,704 | (55.3%) |
Load factor (%) | 52.2% | 79.6% | (27.4) |
Long-haul | |||
Passengers carried (‘000s) | 1,048 | 3,285 | (68.1%) |
Revenue pax-kilometers (m RPK) | 6,994 | 24,177 | (71.1%) |
Available seat-kilometers (m ASK) | 13,918 | 29,913 | (53.5%) |
Load factor (%) | 50.3% | 80.8% | (30.6) |
Short and Medium-haul | |||
Passengers carried (‘000s) | 1,997 | 6,205 | (67.8%) |
Revenue pax-kilometers (m RPK) | 1,575 | 5,024 | (68.7%) |
Available seat-kilometers (m ASK) | 2,500 | 6,792 | (63.2%) |
Load factor (%) | 63.0% | 74.0% | (11.0) |
Q1 | |||
Cargo activity | 2021 | 2020 | Variation |
Revenue tonne-km (m RTK) | 905 | 817 | 10.7% |
Available tonne-km (m ATK) | 1,333 | 1,627 | (18.1%) |
Load factor (%) | 67.9% | 50.2% | 17.7 |
KLM activity
Q1 | |||
Total Passenger network activity | 2021 | 2020 | Variation |
Passengers carried (‘000s) | 1,422 | 6,276 | (77.3%) |
Revenue pax-kilometers (m RPK) | 4,863 | 20,654 | (76.5%) |
Available seat-kilometers (m ASK) | 17,171 | 25,720 | (33.2%) |
Load factor (%) | 28.3% | 80.3% | (52.0) |
Long-haul | |||
Passengers carried (‘000s) | 520 | 2,232 | (76.7%) |
Revenue pax-kilometers (m RPK) | 3,971 | 17,315 | (77.1%) |
Available seat-kilometers (m ASK) | 15,411 | 21,316 | (27.7%) |
Load factor (%) | 25.8% | 81.2% | (55.5) |
Short and Medium-haul | |||
Passengers carried (‘000s) | 901 | 4,043 | (77.7%) |
Revenue pax-kilometers (m RPK) | 893 | 3,339 | (73.3%) |
Available seat-kilometers (m ASK) | 1,760 | 4,404 | (60.0%) |
Load factor (%) | 50.7% | 75.8% | (25.1) |
Q1 | |||
Cargo activity | 2021 | 2020 | Variation |
Revenue tonne-km (m RTK) | 1,168 | 1,017 | 14.8% |
Available tonne-km (m ATK) | 1,355 | 1,571 | (13.8%) |
Load factor (%) | 86.2% | 64.8% | 21.4 |
1 The first quarter of 2020 was impacted by Covid-19, particularly in March
2 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency
³ Change versus 31 December 2020
1 The definition of ROCE has been revised to take into account the seasonal effects of the activity.
Attachment
