Air France-KLM first half results: lack of improvement leads to closure of routes


Financial Year 2015: First Half results


 Revenues of 6.64 billion euros, up 3.0%, down 4.5% like-for-like (1)

 EBITDAR (2) 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 cost (2) 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 flow (2) generation: 274 million euros

 Further net debt reduction: net debt (2) of 4.55 billion euros, down 857 million euros compared to 31 December 2014

 Adjusted net debt / EBITDAR ratio (3) of 3.8x, an improvement of 0.2 compared to 31 December 2014


 Unit cost reduction in the 1% to 1.3% range (4)

 Significant reduction in net debt, from 5.4 billion euros at end 2014 down to around 4.4 billion euros at end 2015


 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.

Alexandre de Juniac made the following comments: “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.

1 Like-for-like: excluding currency. Same definition applies in rest of press release

2 See definition in appendix

3 Trailing 12 months, EBITDAR adjusted for September 2014 pilot strike impact; see definition in appendix

4 On a constant currency, fuel price and pension-related expense basis. See computation in appendix


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