JULY 24TH, 2015
AirFrance-KLM Financial Year 2015: First Half results
Revenues of 6.64 billion euros, up 3.0%, down 4.5% like-for-like1
EBITDAR2 of 824 million euros, a decrease of 30 million euros
Operating result of 185 million euros, a decrease of 53 million euros,stable like-for-like
Unit cost2 down 0.5% like-for-like
Revenues of 12.30 billion euros, up 2.4%, down 3.6% like-for-like
EBITDAR of 1,053 million euros, an improvement of 32 million euros
Strong operating free cash flow2 generation: 274 million euros
Further net debt reduction: net debt2 of 4.55 billion euros, down 857 million euros compared to 31 December 2014
Adjusted net debt / EBITDAR ratio3 of 3.8x, an improvement of 0.2 compared to 31 December 2014
FULL YEAR 2015 OUTLOOK: OBJECTIVES MAINTAINED
Unit cost reduction in the 1% to 1.3% range4
Significant reduction in net debt, from 5.4 billion euros at end 2014 down to around 4.4 billion euros at end 2015
ACCELERATION OF PERFORM 2020
Launch of immediate cost-saving measures
Acceleration of all cost reduction initiatives
Adjustment of Winter 2015-16 capacity
The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 23 July 2015 to approve the accounts for the First Half of the Financial Year 2015.
“In the First Half 2015, Air France-KLM’s results were characterized by exceptional volatility in exchange rates and the fuel price, and by on-going pressure on unit revenues. All the Perform 2020 cost-saving initiatives were identified and quantified, and productivity agreements have already been signed at KLM. Transavia is pursuing its rapid development and will serve 47 cities on departure from Paris this summer. The maintenance business is posting strong growth.
The lack of results improvement leads us to implement immediate additional adaptation measures including, in particular, the closure of heavily loss-making routes, the downward revision in capacity for the forthcoming Winter season, together with an acceleration and an increase in the magnitude of our cost-saving initiatives. Following the agreement signed by KLM with its unions, the rapid conclusion of the negotiations with the Air France unions is key to re-launching the results turnaround. At this pivotal moment in Air France-KLM’s history, the Board and I know that we can count on the spirit of responsibility and commitment shared by all the Group’s staff to enable us to return to a growth path." —Alexandre de Juniac, Chairman and CEO of Air France-KLM
The consolidated financial statements of the Group have been revised as of 1st January 2015 in order to improve their clarity. The changes are:
In view of its rapid development, Transavia is now presented as a separate business segment. The passenger business segment is thus renamed from “passenger” to “passenger network”.
Capitalized production costs are no longer deducted from individual cost lines in the profit and loss statement, but are instead fully allocated to the “other income and expenses” line. The impact per quarter of this restatement is provided in the appendix.
Foreign currency effects on provisions are no longer recorded in “amortization, depreciation and provisions” but in “other financial income and expenses”. The closing exchange rate is used to convert provisions at the closing date. Previously, the Group used the average rate of the US dollar to convert maintenance provisions. The consolidated financial statements as of December 31, 2014 have been restated for reason of comparison. The impact of this restatement is provided in the appendix.