AIRFRANCE KLM full year 2015 results: back in the black figures

0
53
  • Revenues of 26.1 billion euros, up 4.6%, down 3.2% like-for-like[1]
  • EBITDA[2] of 2,447 million euros, a reported increase of 858 million euros and up 576 million euros like-for-like
  • Operating result of 816 million euros, up 945 million euros and up 698 million euros like-for-like; net income of 118 million euros
  • Unit costs[3] down 0.6% like-for-like
  • Significant reduction in net debt2, from 5.4 billion euros at end 2014 down to 4.3 billion euros at 31 December 2015

 

[1] Like-for-like: excluding currency and September 2014 pilot strike impact (425 million euros in operating result). Same definition applies in rest of press release unless otherwise stated.

[2] See definition in appendix

[3] On a constant currency, fuel-price and pension related basis. See computation in appendix

FOURTH QUARTER 2015

  • Revenues of 6.3 billion euros, up 2.2%, down 3.4% like-for-like.
  • Negative impact on revenues of the Paris terrorist attacks estimated at 120 million euros
  • EBITDA of 551 million euros, up 188 million euros like-for-like
  • Operating result of 150 million euros, up 284 million euros like-for-like

OUTLOOK

  • High level of uncertainty regarding fuel price and unit revenue due to geopolitical context and industry capacity environment
  • Impact of fuel savings on P&L expected to be significantly offset by downward pressure on unit revenue and negative currency impacts
  • Continued progress in unit cost reduction targeted between 0.8% and 1.2% in 2016
  • Free operating cash flow generation after disposals between 0.6 billion euros and EUR 1.0 billion euros in 2016
  • Further significant net debt reduction

The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 17 February 2016 to approve the accounts for Full Year 2015.

“We are very pleased to post positive results and a reduced net debt for the Group in 2015, reflecting the efforts of all the staff and the loyalty of our passengers. The measures deployed with Transform 2015 have paid off and we are delivering the strategy implemented in the Perform 2020 plan, with focused growth in long haul, E&M and the European low-cost operations while restructuring loss-making businesses and reducing unit costs. In spite of the favorable environment created by lower fuel prices, we will not reduce our ambition to improve our competitive position while economic and geopolitical uncertainties remain high.„

Alexandre de Juniac, Chairman and CEO of Air France-KLM

Key data

Fourth quarter

Full Year

2015

2014

Change

2015

2014

Change

Passengers (thousands)

21,323

21,047

+1.3%

89,821

87,358

+2.8%

Capacity (EASK m)

81,639

81,565

+0.1%

337,993

332,602

+1.6%

Revenues (€m)

6,346

6,212

+2.2%

26,059

24,912

+4.6%

Change like-for-like (%)

-3.4%

-3.2%

EBITDAR (€m)

816

543

+273

3,474

2,462

+1,012

EBITDA (€m)

551

316

+235

2,447

1,589

+858

EBITDA margin

8.7%

5.1%

+3.6 pt

9.4%

6.4%

+3.0 pt

EBITDA change like-for-like (€m)

+188

+906

Operating result (€m)

150

-169

319

816

-129

945

Operating margin

2.4%

-2.7%

+5.1 pt

3.1%

-0.5%

+3.6 pt

Operating result like-for-like (€m)

+284

+698

Net result, group share (€m)

276

308

-32

118

-225

+343

Restated net result, group share (€m)

23

-307

+330

220

-540

+760

Earnings per share (€)

0.93

1.07

-0.14

0.34

-0.75

+1.09

Diluted earnings per share (€)

0.93

0.78

+0.15

0.34

-0.75

+1.09

Adjusted earnings per share (€)

0.77

-1.03

+1.80

0.68

-1.82

+2.50

Diluted adjusted earnings per share (€)

0.77

-1.03

+1.80

0.68

-1.82

+2.50

Operating free cash flow (€m)

73

-101

+174

606

-164

+770

Net debt at end of period (€m)

4,307

5,407

-1,100

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.
  • The costs of temporary staff are no longer recorded in “External expenses” but in “Salaries and related costs”.

Full year 2015

Full Year 2015 total revenues stood at 26.1 billion euros versus 24.9 billion euros in 2014, up 4.6%. Corrected for the strike impact, revenues increased by 2.5% mainly as a result of a strong currency tailwind. Total revenues were down 3.2% like-for-like.

The Fourth Quarter 2015 results were affected by the Paris terrorist attacks in November. The estimated impact in the Fourth Quarter 2015 revenues was 120 million euros.

Total operating costs were up +0.8% year-on-year and 5.8% lower on a like-for-like basis. Ex-fuel, they increased by 3.5% and by 1.1% on a like-for-like basis. Unit cost per EASK was reduced by 0.6%, on a constant currency, fuel price and pension basis, against capacity measured in EASK up by +0.2%, corrected for the strike.

The 2015 fuel bill amounted to 6,183 million euros, down 6.7% and 22.3% like-for-like. Based on the forward curve at 5 February 2016, the Full Year 2016 fuel bill could amount to 4.5 billion euros[1]

Total employee costs including temporary staff were up 2.8% to 7,852 million euros. They included a non-cash increase of 139 million euros in pension related expenses at KLM due to changes in actuarial assumptions (lower discount rate). On a constant scope and pension expense basis and adjusted for the strike, they increased by 0.7%. Excluding the profit sharing scheme, net employee costs decreased by 0.2%.

In Full Year 2015, the positive currency impact on revenues reached 1,510 million euros. In spite of the higher profits on currency hedging, the negative impact on costs reached 1,688 million euros. The net impact of currencies on the operating result thus amounted to a negative 178 million euros.

EBITDAR amounted to 3,474 million euros, a reported increase of 1,012 million euros. Like-for-like, EBITDAR increased by 585 million euros, mainly driven by good second half trading. Over the Full Year 2015, 30% of the savings achieved on the fuel bill were retained; positive 1,721 million euros excluding currency was partially offset by pressure on unit revenues (negative 1,028 million euros excluding currency) and currency impacts (negative 178 million euros).

EBITDA amounted to 2,447 million euros, an increase of 858 million euros. Like-for-like, EBITDA increased by 576 million euros, mainly as a result of the strong Passenger network performance, which improved by 625 million euros like-for-like over the full year.

GROUP FLEET AT 31 DECEMBER 2015

Aircraft type

AF

(incl. HOP!)

KL

(incl. KLC & Martinair)

Transavia

Owned

Financelease

Operating

lease

Total

In operation

Change / 31/12/14

B747-400

3

22

21

1

3

25

25

-3

B777-300

40

10

9

22

19

50

50

5

B777-200

25

15

16

11

13

40

40

B787-9

2

2

2

2

2

A380-800

10

1

4

5

10

10

A340-300

13

5

5

3

13

12

-1

A330-300

5

5

5

5

A330-200

15

11

4

7

15

26

25

-2

Total Long-Haul

106

65

56

50

65

171

169

1

B737-900

5

1

1

3

5

5

B737-800

25

45

8

9

53

70

70

9

B737-700

18

8

3

8

15

26

26

-1

A321

21

5

6

10

21

20

-4

A320

46

8

3

35

46

43

-2

A319

38

15

10

13

38

38

-3

A318

18

11

7

18

15

-3

Total Short and Medium-Haul

123

48

53

51

44

129

224

217

-4

ATR72-600

5

5

5

5

5

ATR72-500

6

1

3

2

6

6

-5

ATR42-500

13

5

3

5

13

13

Canadair Jet 1000

14

14

14

14

1

Canadair Jet 700

14

14

14

13

Canadair Jet 100

7

7

7

-4

Embraer 190

10

30

4

15

21

40

40

2

Embraer 170

16

8

2

6

16

16

Embraer 145

18

13

5

18

16

1

Embraer 135

5

5

5

-1

Fokker 70

18

18

18

16

-3

Total Regional

108

48

89

28

39

156

139

-4

B747-400ERF

3

2

1

3

3

-2

B747-400BCF

3

3

3

1

B777-F

2

2

2

2

MD-11-CF

5

3

2

5

3

MD-11-F

-3

Total Cargo

2

11

7

3

3

13

9

-5

Total Air France-KLM

339

172

53

203

125

236

564

534

-12

Amstelveen, 18 February 2016

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.