<< Mitteilung

2019-07-31 07:11

Air France-KLM results at 30 june 2019

31 July 2019

RESULTS AS AT 30 JUNE 2019

Increased 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 GroupSecond QuarterFirst half
2019Change12019Change1
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+5497-131
Net income – Group part (€m)80-30-240-81
Adj. operating free cash flow (€m)110+111351+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

NetworkSecond Quarter First Half
2019ChangeChange
constant currency
2019ChangeChange
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+7712-138-68

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 QuarterFirst Half
Passenger network2019ChangeChange
constant currency
2019ChangeChange
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 QuarterFirst Half
Cargo business2019ChangeChange
constant currency
2019ChangeChange
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 QuarterFirst Half
Transavia2019Change2019Change
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 pt92.0%+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 QuarterFirst Half
Maintenance2019ChangeChange
constant currency
2019ChangeChange
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+1102+30+18
Operating margin (%)4.9%+0.3 pt-0.2 pt4.5%+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 QuarterFirst half
 2019ChangeChange
constant currency
2019ChangeChange
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+1141,571-99-42
Operating result (€m)400+54+7297-131-69
Operating margin (%)5.7%+0.5 pt+0.8 pt0.7%-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 QuarterFirst Half
In € million2019Change2019Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)1,096+1751,465+31
Cash out related to Voluntary Departure Plans (€m)-6+92-11+110
Change in Working Capital Requirement (WCR) (€m)-19-45787-46
Net cash flow from operating activities (€m)1,071+2222,241+95
Net investments before sale & lease-back* (€m)-711-136-1,389+99
Operating free cash flow (€m)360+86852+194
Reduction of lease debt-250+25-501+16
Adjusted operating free cash flow **110+111351+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 flow
The 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 € million30 Jun 201931 Dec 2018
Net debt 5,6986,164
EBITDA trailing 12 months4,1184,217
Net debt/EBITDA trailing 12 months1.4 x1.5 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 QuarterFirst Half
 2019Change2019Change
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)258-70202-186
Operating margin (%)8.9%-2.8 pt3.8%-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 57
Netherlands: Local +31 (0)20 703 8261 
UK: Local +44 (0)330 336 9411
US: 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                                                                                          Press
Marie-Agnès de Peslouan                   Wouter van Beek                                                       
+33 1 49 89 52 59                                 +33 1 49 89 52 60                                 +33 1 41 56 56 00
madepeslouan@airfranceklm.com        Wouter-van.Beek@airfranceklm.com


Income Statement

 Second QuarterFirst Half
In millions euros20192018Change20192018Change
Sales7,0506,626+6.4%13,03612,432+4.9%
Other revenues01-100.0%01-100.0%
Revenues7,0506,626+6.4%13,03612,432+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 expenses241200+20.4%454436+4.1%
EBITDA1,1471,049+9.3%1,5711,670-5.9%
Amortization, depreciation and provisions-747-703+6.2%-1,474-1,442+2.2%
Income from current operations400346+15.6%97228-57.5%
Sales of aircraft equipment100nm23-4nm
Other non-current income and expenses-3520nm-30-23+30.4%
Income from operating activities375366+2.5%90201-55.2%
Cost of financial debt-115-122-5.8%-221-236-6.4%
Income from cash and cash equivalent1510+55.2%2720+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 tax236168+40.5%-214-89+140.4%
Income taxes-161-62+160.7%-33-68-51.5%
Net income of consolidated companies75106-29.2%-247-157+57.3%
Share of profits (losses) of associates65+20.0%8-1nm
Income from continuing operations81111-27.0%-239-158+51.3%
Net income from discontinued operations00nm00nm
Net income for the period81111-26.4%-239-158+50.3%
Minority interest110.0%110.0%
Net income for the period – Group part80110-27.3%-240-159+50.9%


Consolidated Balance Sheet

Assets30 June 201931 Dec 2018
In million euros
Goodwill217217
Intangible assets1,2481,194
Flight equipment10,54110,167
Other property, plant and equipment1,5301,503
Right-of-use assets5,0795,243
Investments in equity associates305311
Pension assets174331
Other financial assets1,3841,487
Deferred tax assets441544
Other non-current assets242264
Total non-current assets21,16121,261
Assets held for sale00
Other short-term financial assets469325
Inventories702633
Trade receivables2,5582,191
Other current assets1,2241,062
Cash and cash equivalents4,4183,585
Total current assets9,3717,796
Total assets30,53229,057


Liabilities and equity30 June 201931 Dec 2018
In million euros
Issued capital429429
Additional paid-in capital4,1394,139
Treasury shares-67-67
Perpetual403403
Reserves and retained earnings-3,327-3,051
Equity attributable to equity holders of Air France-KLM1,5771,853
Non-controlling interests1312
Total Equity1,5901,865
Pension provisions2,2852,098
Return obligation liability and other provisions3,0973,035
Financial debt5,9495,733
Lease debt3,4733,546
Deferred tax liabilities04
Other non-current liabilities293459
Total non-current liabilities15,09714,875
Return obligation liability and other provisions558492
Current portion of financial debt1,080826
Current portion of lease debt955989
Trade payables2,5002,460
Deferred revenue on ticket sales4,4073,153
Frequent flyer program837844
Other current liabilities3,5053,548
Bank overdrafts35
Total current liabilities13,84512,317
Total equity and liabilities30,53229,057


Statement of Consolidated Cash Flows from 1st January until 30th June 2019

In million euros30 June 201930 June 2018
Net income from continuing operations-239-158
Net income from discontinued operations00
Amortization, depreciation and operating provisions1,4751,442
Financial provisions8957
Loss (gain) on disposals of tangible and intangible assets-317
Loss (gain)on disposals of subsidiaries and associates-20
Derivatives – non monetary result24-23
Unrealized foreign exchange gains and losses, net52108
Other non-monetary items64-182
Share of (profits) losses of associates-81
Deferred taxes3061
Financial Capacity1,4541,313
Of which discontinued operations00
(Increase) / decrease in inventories-73-67
(Increase) / decrease in trade receivables-371-517
Increase / (decrease) in trade payables24163
Change in other receivables and payables1,2071,254
Change in working capital requirements787833
Change in working capital from discontinued operations00
Net cash flow from operating activities2,2412,146
Purchase of property, plant and equipment and intangible assets-1,464-1,534
Proceeds on disposal of property, plant and equipment and intangible assets7546
Proceeds on disposal of subsidiaries, of shares in non-controlled entities83
Acquisition of subsidiaries, of shares in non-controlled entities0-8
Dividends received73
Decrease (increase) in net investments, more than 3 months205
Net cash flow used in investing activities of discontinued operations00
Net cash flow used in investing activities-1,354-1,485
Increase of equity due to new convertible bond540
Perpetual (including premium)00
Issuance of debt762295
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 operations00
Net cash flow from financing activities-39-1,270
Effect of exchange rate on cash and cash equivalents and bank overdrafts-138
Effect of exch. rate on cash and cash eq. and bank overdrafts of disc. ops.00
Change in cash and cash equivalents and bank overdrafts835-601
Cash and cash equivalents and bank overdrafts at beginning of period3,5804,667
Cash and cash equivalents and bank overdrafts at end of period4,4154,066
Change in treasury of discontinued operations00


Key Performance Indicators

EBITDA

 Second QuarterFirst Half
In millions euros2019201820192018
Income/(loss) from current operations40034697228
Amortization, depreciation and provisions7477031,4741,442
EBITDA1,1471,0491,5711,670

Restated net result, group share         

 Second QuarterFirst Half
In million euros2019201820192018
Net income/(loss), Group share 80110-240-159
Net income/(loss) from discontinued operations0000
Unrealized foreign exchange gains and losses, net-1213252108
Change in fair value of financial assets and liabilities (derivatives) 5-74-20-60
Non-current income and expenses 25-20727
Depreciation of shares available for sale -6-22-12-22
De-recognition of deferred tax assets 0000
Restated net income/(loss), group part92125-213-106
Coupons on perpetual-8-12-12-12
Restated net income/(loss), group share including coupons on perpetual (used to calculate earnings per share)84113-225-118
Restated net income/(loss) per share (in €)0.200.26-0.53-0.28

Return on capital employed (ROCE)1

In million euros30 June 201930 June 201830 June 201830 June 2017
Goodwill and intangible assets1,4651,3791,3791,309
Flight equipment10,54110,08110,0819,539
Other property, plant and equipment1,5301,4431,4431,378
Right of use assets5,0795,5655,5655,577
Investments in equity associates305294294294
Financial assets excluding shares available for sale, marketable securities and financial deposits133122122106
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 8,8689,2719,2719,088
Average capital employed (A)9,0709,180
Income from current operations1,2011,610
- Dividends received-1-3
- Share of profits (losses) of associates613
- Normative income tax-358-481
Income from current operations after tax (B)8481,139
ROCE, trailing 12 months (B/A)9.3%12.4%

Net debt

 Balance sheet at
In million euros30 June 201931 Dec 2018
Financial debt6,6856,216
Lease debt4,3404,450
Financial assets pledged (OCEANE swap)00
Currency hedge on financial debt57
Accrued interest-52-67
Gross financial debt (A)10,97810,606
Cash and cash equivalents4,4183,585
Marketable securities4974
Cash pledges269265
Deposits (bonds)548522
Bank overdrafts-3-5
Other-11
Net cash (B)5,2804,442
Net debt (A) – (B)5,6986,164

Adjusted operating free cash flow

 Second QuarterFirst Half
In million euros2019201820192018
Net cash flow from operating activities, continued operations1,0718492,2412,146
Investment in property, plant, equipment and intangible assets-747-595-1,465-1,534
Proceeds on disposal of property, plant, equipment and intangible assets 36207646
Operating free cash flow360274852658
Payments on lease debt-250-275-501-517
Adjusted operating free cash flow110-1351141


Unit cost: net cost per ASK

 Second QuarterFirst half
 2019201820192018
Revenues (in €m)7,0506,62713,03612,432
Income/(loss) from current operations (in €m) -/-40034697228
Total operating expense (in €m)6,6506,28112,93912,204
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)5,8075,49911,24510,678
Capacity produced, reported in ASK*85,20781,538160,793154,941
Net cost per ASK (in € cents per ASK)6.826.756.996.89
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)6.826.986.997.09
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 QuarterFirst Half
 2019Change2019Change
Revenue (in €m)4,284+9.1%7,982+6.7%
EBITDA (in €m)609+170813+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+218764+127
Operating cash flow (before WCR and restructuring) margin13.8%+4.3 pt9.6%+1.1 pt


KLM Group

 
Second QuarterFirst Half
 2019Change2019Change
Revenue (in €m)2,899+3.7%5,284+2.0%
EBITDA (in €m)537-66744-172
Operating result (en m€)258-70202-186
Operating margin (%)8.9%-2.8 pt3.8%-3.7 pt
Operating cash flow before WCR and restructuring cash out (in €m)507-35692-95
Operating cash flow (before WCR and restructuring) margin17.5%-1.9 pt13.1%-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 typeAF
(incl. HOP)
KLM
(incl. KLC & MP)
TransaviaOwnedFinance  leaseOperating leaseTotalIn operationChange /  31/12/18
B747-400 10 10  1010-1
B777-3004314 1124225757 
B777-2002515 241154040 
B787-9913 731222222
B787-10 1 1  11 
A380-80010  1451010 
A340-3005  5  55-1
A330-300 5   555 
A330-200158 11 122323 
Total Long-Haul1076607032711731731
B737-900 5 2 355 
B737-800 30722910631021029
B737-700 16735152323-2
A32120  11 92020 
A32043  35354343 
A31933  20 133333-1
A31818  162 1818 
Total Medium-Haul114517984221382442446
ATR72-6006    665-1
ATR72-5001    11 -1
ATR42-5003    33 -5
Canadair Jet 100014  14  1414 
Canadair Jet 70011  11  11102
Embraer 1901232 7142344442
Embraer 175 17 314 1717 
Embraer 17015  9151515 
Embraer 14517  143 1713 
Total Regional79490583238128118-3
B747-400ERF 3 3  33 
B747-400BCF 1 1  11 
B777-F2  2  22 
Total Cargo240600660
          
Total30217079218862475515414






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.



Attachment

Indizes

LU0916829079 645.1297 (-1.72%)

Aktien und Anleihen

Aktie Kurs Letz. +/-
Aperam (EUR) 25.1 25.71 -2.37%
ArcelorMittal (EUR) 15.236 15.606 -2.37%
BlueMarHoldings (EUR) 4.76 4.76 +0.00%
Brederode (EUR) 69.4 70.4 -1.42%
EDIFY act. ord. (EUR) 49.8 49.8 +0.00%
HellaGmbHKGaa (EUR) 44.88 44.94 -0.13%
ImmoLux-Airport (EUR) 266.0 264.0 +0.76%
Luxempart (EUR) 52.0 52.5 -0.95%
RTLGroup (EUR) 45.6 46.8 -2.56%
ReinetInvest (EUR) 14.2 14.2 +0.00%
SEO .prvB (EUR) 260.0 236.0 +10.17%
SEO 1/5prvB (EUR) 54.0 57.0 -5.26%
SES FDR (EUR) 14.89 14.99 -0.67%
SocFinCaoutchcs (EUR) 26.6 26.6 +0.00%
Socfinaf (EUR) 10.3 10.3 +0.00%
Socfinasia (EUR) 12.4 12.2 +1.64%
Vonovia (EUR) 42.11 42.18 -0.17%
Anleihe Kurs Letz. +/-
AXA 5,25% 16/04/2040 (EUR) 102.989 102.994 -0.00%
AirbusFinan 2,375% 02/04/2024 (EUR) 110.683 110.681 +0.00%
AlticeLux 7,25% 15/05/2022 (EUR) 102.455 102.455 +0.00%
Astaldi 7,125% 01/12/2020 (EUR) 21.5 23.5 -8.51%
BASF 2,5% 22/01/2024 (EUR) 110.784 110.776 +0.01%
BNGBank 4,375% 16/02/2021 (USD) 103.348 103.379 -0.03%
BNPParibas 4,875% pp (EUR) 100.295 100.502 -0.21%
BarclaysBank 4,75% pp (EUR) 97.023 97.004 +0.02%
Bayer 1,875% 25/01/2021 (EUR) 102.291 102.29 +0.00%
Bayer 2,375% 02/04/2075 (EUR) 101.455 101.455 +0.00%
Bekaert 5% 06/12/2019 (EUR) 101.047 101.054 -0.01%
BenOldmanESB 10% 23/10/2021 (EUR) 102.0 102.0 +0.00%
Bombardier 6,125% 15/05/2021 (EUR) 106.195 106.14 +0.05%
Bouygues 3,625% 16/01/2023 (EUR) 113.025 113.016 +0.01%
CasinoGuichardP FRN pp (EUR) 42.834 42.561 +0.64%
CmaCgm 7,75% 15/01/2021 Reg S (EUR) 95.387 94.689 +0.74%
Colombia 8,375% 15/02/2027 (USD) 121.25 119.75 +1.25%
CreditAgricole 7,875% pp (EUR) 100.9 100.934 -0.03%
Daimler 2% 25/06/2021 (EUR) 103.741 103.69 +0.05%
DeutscheBank 2% 02/12/2019 (USD) 96.78 96.75 +0.03%
DeutscheBank 2,2% 17/11/2020 (USD) 98.17 98.19 -0.02%
DtscheLufthansa 5,125% 12/08/2075 (EUR) 106.5 106.545 -0.04%
EFSF 1,875% 23/05/2023 (EUR) 108.985 108.94 +0.04%
EFSF 2,25% 05/09/2022 (EUR) 108.5 108.48 +0.02%
ENI 1,75% 18/01/2024 (EUR) 107.791 107.71 +0.08%
GazCapital 8,625% 28/04/2034 (USD) 141.548 141.655 -0.08%
GiePsaTresor 6% 19/09/2033 (EUR) 145.795 145.49 +0.21%
HeidelbergFinLu 7,5% 03/04/2020 (EUR) 104.16 104.155 +0.00%
HornbachBau 3,875% 15/02/2020 (EUR) 101.531 101.57 -0.04%
KfWA 2% 02/05/2025 (USD) 101.126 101.34 -0.21%
Lafarge 4,75% 23/03/2020 (EUR) 102.54 102.545 -0.00%
Luxembourg 2,125% 10/07/2023 (EUR) 110.679 111.015 -0.30%
Luxembourg 2,25% 19/03/2028 (EUR) 121.9 121.99 -0.07%
Luxembourg 2,25% 21/03/2022 (EUR) 107.635 107.59 +0.04%
Luxembourg 2,75% 20/08/2043 (EUR) 143.669 141.305 +1.67%
Luxembourg 3,375% 18/05/2020 (EUR) 102.655 102.66 -0.00%
MOBY 7,75% 15/02/2023 Reg S (EUR) 30.516 30.34 +0.58%
McDonalds 2% 01/06/2023 (EUR) 107.835 107.817 +0.02%
MüchenerRückGes 6% 26/05/2041 (EUR) 110.195 110.182 +0.01%
NBFinanceLtd FRN 07/02/2035 (EUR) 91.647 91.651 -0.00%
NordRheinWFalen 2,375% 16/09/2021 (USD) 100.9 100.94 -0.04%
NovoBanco 100 09/04/2052 (EUR) 22.128 22.199 -0.32%
NovoBanco 3,5% 02/01/2043 (EUR) 99.769 99.227 +0.55%
OMV 6,25% pp (EUR) 127.065 127.11 -0.04%
Pemex 6,5% 02/06/2041 (USD) 93.006 92.477 +0.57%
PetroVenezuela 12,75% 17/02/2022 (USD) 28.7 27.0 +6.30%
PetroVenezuela 5,375% 12/04/2027 (USD) 13.933 13.933 +0.00%
PetroVenezuela 5,5% 12/04/2037 (USD) 13.93 13.93 +0.00%
Philippines 4,2% 21/01/2024 (USD) 108.176 108.451 -0.25%
Portugal 5,125% 15/10/2024 (USD) 113.444 113.802 -0.31%
RWE 3,5% 21/04/2075 (EUR) 108.99 108.99 +0.00%
RWE 6,625% 30/07/2075 (USD) 112.125 112.125 +0.00%
RaiffeisenBkInt 6% 16/10/2023 (EUR) 120.845 120.615 +0.19%
RussianFed 7,5% 31/03/2030 (USD) 120.594 120.558 +0.03%
SNCFMobilites 4,875% 12/06/2023 (EUR) 120.18 120.45 -0.22%
Sanofi 1,75% 10/09/2026 (EUR) 110.96 110.932 +0.03%
StadaArzneimitt 1,75% 08/04/2022 (EUR) 102.28 102.272 +0.01%
SüdzuckIntlFin FRN pp (EUR) 74.373 74.428 -0.07%
TelecomItaliaCa 7,2% 18/07/2036 (USD) 114.254 114.088 +0.15%
TelecomItaliaFi 7,75% 24/01/2033 (EUR) 151.205 151.175 +0.02%
Thyssenkrupp 2,5% 25/02/2025 (EUR) 104.19 104.24 -0.05%
Turkey 7,375% 05/02/2025 (USD) 104.27 104.863 -0.57%
VWIntlFin 4,625% pp (EUR) 110.945 111.285 -0.31%
VWIntlFin 5,125% pp (EUR) 113.205 113.235 -0.03%
Venezuela 11,75% 21/10/2026 (USD) 17.457 19.685 -11.32%
VeoliaEnvironn 6,125% 25/11/2033 (EUR) 173.906 174.049 -0.08%
YPF 8,5% 28/07/2025 Reg S (USD) 77.995 78.378 -0.49%
ØRSTED A/S 6,25% 26/06/3013 (EUR) 120.28 120.28 +0.00%