2023 Full Year Results
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*FULL YEAR RESULTS 2023*
February 29, 2024
*Sustained demand translating into improved operating margin at 5.7%*
*Group’s equity restored *
· Group capacity at 93% compared to 2019 with load factor at 87%
· Group revenues at €30.0bn, up 14% compared to last year
· Operating result at €1.7bn with an operating margin at 5.7%, up +1.2pt compared to last year
· Net income at €0.9bn driving a return in positive equity at €0.5bn for the first time since 2019
· Net debt down by €1.3bn, compared to end of 2022 leading to a Net debt/EBITDA ratio of 1.2x; Cash at hand at €10.5bn
· 2 inaugural credit ratings highlighting the Group’s ongoing transformation and an improved financial structure
Commenting on the results, *Mr. Benjamin Smith, Group CEO*, said:
“In 2023, we delivered on our commitment to strong operational and financial performance, while also maintaining our position as a benchmark airline Group for sustainability. Among our major achievements, we can be satisfied of our efforts to further strengthen our balance sheet and restore the Group’s equity. We also placed a historic order for fifty Airbus A350s with purchase rights for forty additional aircraft, thereby accelerating our fleet’s renewal with latest-generation aircraft that offer improved fuel efficiency, lower CO2 and noise emissions, and an enhanced experience for our customers. We also confirmed our position as the world's leading user of sustainable aviation fuel, demonstrating our determination to double down on this key decarbonization lever to achieve our sustainability objectives. I would like to thank all Air France-KLM employees whose hard work has made these accomplishments possible. Looking ahead to 2024, a key priority will be to continue reinforcing our performance, via the continued execution of our strategy. This year will mark Air France-KLM’s 20th anniversary, an occasion made all the more special by the Paris 2024 Olympic and Paralympic Games, of which Air France is a proud official sponsor. We look forward to welcoming the world to France – athletes, delegates, supporters and more – onboard our aircraft to celebrate the world’s largest event.”
*Operating result impacted by cargo unit revenue, geopolitical situation and disruptions in Q4 *
*Fourth quarter* *Full Year* *2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Revenues (€m) *7,407* *+3.9* *%* *+6.7* *%* *30,019* *+13.7* *%* *+15.1* *%*
EBITDA (€m) *601* *-185* *-159* *4,208* *593* *624*
Operating result (€m) *-56* *-190* *-164* *1,712* *519* *550*
Operating margin (%) *-0.8* *%* *-2.6pt* *-2.3pt* *5.7* *%* *+1.2pt* *+1.2pt*
Net income – Group part (€m) *-256* *-752* *934* *206*
Adj. operating free cash flow (€m) *-1,198* *-648* *-392* *-2,295*
*31 Dec 2023* *31 Dec 2022*
Net Debt 5,041 6,337
EBITDA trailing 12 months 4,208 3,615
Net Debt/EBITDA ratio 1.2x 1.8x
*Fourth quarter* *Full Year* *2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Group unit revenue per ASK
(€ cts) 8.56 -3.6% -1.2% 8.80 +3.3% +4.5%
Group unit cost per ASK (€ cts) at constant fuel 8.63 -0.7% +3.5% 8.25 +1.8% +4.7%
*Fourth Quarter 2023*
In the fourth quarter, revenues were up +6.7% at a constant currency compared to Q4 2022 supported by a combination of an increase in capacity (+6%) and an improved passenger yield (+3.2%) partly absorbed by a cargo unit revenue decrease (-31.8%).
The operating result was €190 million below last year standing at -€56 million and was impacted by the geopolitical situation in Africa and in the Middle East (€65m) and an increase of the unit cost, although partly compensated by a lower jet fuel price.
The group unit cost per ASK at constant fuel and constant currency is up 3.5% versus last year due an increase in operational disruption costs for €70 million and a one-time non-cash impact (IFRS2) related to the employee shareholding plan for €30m.
*Full-Year 2023*
Air France-KLM recorded the highest revenue in its history in 2023, amounting to €30bn, up +15.1% at constant currency. The operating margin stood at 5.7%, sequentially improving by +1.2pt compared to last year thanks to a combination of strong yield and load factor. Net income amounted to €934 million, up by €206 million, which, combined with the quasi equity financings occurred during the year, leads to a return in positive equity (€0.5bn).
The full year adjusted operating free cash flow was impacted by the payment of the wage taxes, pensions & social charges accumulated during Covid (€350 million).
In January 2024, Air France fully redeemed €610 million of the deferred pensions payment to the Caisse des Retraites des Personnels Navigants (CRPN). The Group thanks the CRPN pilots for their support. The Group will redeem the remaining social charges and wage taxes of around €1.7 billion until 2027.
The net debt ended at €5.0 billion representing an improvement of €1.3 billion compared to 2022.
*Passenger unit revenue up thanks to improved load factor and yield*
*Fourth quarter* *Full Year* *2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Passengers (thousands) 22,347 +6.4% 93,565 +12.3%
Capacity (ASK m) 77,024 +6.0% 309,505 +9.5%
Traffic (RPK m) 65,691 +5.3% 270,134 +13.7%
Passenger load factor 85.3% -0.6pt 87.3% +3.3pt
Passenger unit revenue per ASK (€ cts) 7.90 +0.4% +2.8% 8.15 +9.5% +10.7%
In the fourth quarter 2023, Air France-KLM welcomed 22.3 million passengers which is 6.4% above previous year. As capacity increased by 6.0% and traffic grew by 5.3%, the load factor was broadly stable at -0.6 point compared to last year.
The Group passenger unit revenue per ASK was up +2.8% at constant currency compared to last year. This increase was driven by an increase in yield across all long-haul geographies and Short & Medium-haul.
*Upsizing and the completion of a quasi-equity financing of €1.5 billion*
Following the signing on October 26, 2023, of a definitive agreement between Air France-KLM and Apollo (NYSE: APO) regarding the financing of a dedicated operating affiliate of Air France-KLM, the companies announced on November 30^th, that they have completed the transaction for an upsized total amount of €1.5 billion.
The financing by Apollo-managed and third-party investment vehicles supports a dedicated operating affiliate of Air France-KLM that holds the trademark and most of the commercial partners contracts related to Air France and KLM’s joint loyalty program (“Flying Blue”) as well as the exclusive right to issue "Miles” for the airlines and their partners. The financing is accounted for as equity under IFRS. As announced by Air France-KLM during its Q3 2023 results, this outcome materializes the steps implemented by the Group to restore its IFRS equity to positive by year end.
The transaction upsize to €1.5 billion reflects strong investor confidence and the quality of Air France-KLM Flying Blue Miles issuance activity. The transaction terms disclosed in late October 26, 2023, remain unchanged, with a fixed coupon of 6.4% p.a. for the first four years, with the right for Air France KLM to redeem with at overall financing fixed cost of 6.75% at the first call date.
The agreed structure will incur no material changes for Flying Blue members. Air France-KLM will continue managing and operating the Flying Blue loyalty program, and Air France and KLM will each keep full control on the Flying Blue customer database. In addition, the financing structure will not affect social aspects for Air France, KLM nor Air France-KLM employees’ contracts.
*Success of Air France-KLM Group's global employee shareholding plan*
On December 21^st, 2023, Air France-KLM has successfully finalized its "Partners for the future" employee shareholding offer, a capital increase reserved for approximately 75,000 eligible employees of the Group, launched in November 2023.
For this Group's first worldwide operation, approximately 17,000 employees located in 19 countries, representing approximately 22% of the total workforce of the Group, have subscribed to the "Partners for the future" offer, enabling them to invest in Air France-KLM shares on preferential terms.
The total subscription amounts to nearly 46,073,029 euros, corresponding to the issue of 5,716,256 new shares with a par value of one euro each. As a result, the Company's share capital was increased by 5,716,256 euros, from 257,053,613 euros to 262,769,869 euros.
Following this issuance, the employee shareholders in Air France-KLM’s share capital, within the meaning of Article L. 225-102 of the French Commercial Code, is just over 3% of the share capital.
*2024 OUTLOOK *
*Capacity*
The Group expects the capacity in Available Seat Kilometers for Air France-KLM Group including Transavia to increase by 5% in 2024 compared to 2023.
*Unit cost*^*1*
For the first quarter 2024, the Group expects a unit cost up +4% compared to 2023 due to the continuation of high disruption cost in the first two months and a one-time payment of 2% of the yearly salary to the KLM staff as agreed in the Collective Labour Agreement.
For the full year 2024, the Group expects a unit cost in the range of 1% to 2% compared to 2023.
*Capex*
Full year 2024 net capex is expected to stand between 3.0 billion and 3.2 billion euros.
*Business review *
*Strong year for the network operations *
*Network*
*Fourth quarter* *Full Year*
*2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Traffic revenues (€m) 6,055 +1.9% +4.6% 24,560 +12.4% +13.9%
Total revenues (€m) 6,342 +2.2% +4.8% 25,636 +12.6% +14.0%
Operating result (€m) 60 -178 -155 1,693 +562 +574
Operating margin (%) 0.9% -2.9 pt 6.6% 1.6 pt
Compared to the fourth quarter 2022, total revenues increased by +2.2% to €6,342 million. The operating result was positive and stood at €60 million despite geopolitical tensions. The increase in revenues was driven by the high demand in passenger network despite the weakening of Cargo market.
Altogether, the network activity posted a strong operating result at €1,693 million in 2023, representing an improvement of €562 million compared to last year. As a consequence, the operating margin rose by 1.6pt to 6.6%. This result was mainly driven by a combination of strong yield and load factor at passenger business.
Like in Q4 2023, Q1 2024 will be impacted as well by operational disruptions, while Air France started to fly again to Tel Aviv as per 24^th of January.
*Robust growth in unit revenue*
*Passenger network*
*Fourth quarter* *Full Year*
*2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Passengers (thousands) 17,736 +7.6% 72,101 +11.0%
Capacity (ASK m) 67,333 +6.5% 267,061 +8.8%
Traffic (RPK m) 57,527 +5.8% 232,334 +13.0%
Load factor 85.4% -0.6pt 87.0% 3.2pt
Total passenger revenues (€m) 5,691 +6.2% +8.7% 23,148 +20.2% +21.5%
Traffic passenger revenues (€m) 5,546 +6.5% +9.2% 22,548 +20.0% +21.4%
Unit revenue per ASK (€ cts) 8.23 0.0% +2.6% 8.44 +10.2% +11.6%
Fourth quarter 2023 capacity in Available Seat Kilometers (ASK) was 6.5% higher than last year and at 90% of 2019 level. Slightly lower traffic (+5.8%) than capacity growth has led to a steadiness in load factor at 85.4% (-0.6 point compared to last year) while yield continued to rise (+3% against a constant currency).
This performance had a positive impact on Unit revenue per ASK which rose by 2.6% at a constant currency.
During the fourth quarter we observed per area the following trends:
*North Atlantic*
Q4 capacity for the region was +7.0% vs 2022 with a slightly lower load factor of -0.6pt and yield increased by 2.9% vs 2022. Overall a good performance, especially with additional capacity increasing revenues versus 2022.
*Latin America*
Demand remained very strong over the fourth quarter, enabling to further increase the yield by 3.9% with a high load factor at 89% against a robust 2022. Dynamic regions were Brazil and Central America.
*Asia & Middle East*
Capacity in the fourth quarter has significantly increased versus 2022, by 34.4% however still -26% below 2019 Growth was mainly driven by the growth in China. Yield and load factor remained stable compared to last year despite the geopolitical disruptions across the area. Middle East was impacted by side effects on Egypt and Lebanon due to cancellation on Israel. Dynamic regions over the quarter were India and South East Asia.
*Caribbean & Indian Ocean*
The fourth quarter continued to show capacity reductions compared to 2022 (-14.6%) due to redeployment of fleet to other long-haul areas. This lower capacity pushed the load factor up to 87% and yield improved by 12.3%.
*Africa*
Despite the geopolitical situation in Niger, Mali and Burkina Faso, the Group enjoyed continued strong demand resulting in a moderate growth of capacity where unit revenues kept stable. The yield showed resiliency and was up 1% above 2022 while the load factor was broadly stable (-0.7pt).
*Short and Medium-haul*
Capacity increased by +5.4% with different dynamics. KLM Medium Haul went up +11%, last year was relatively low due to operational issues. Air France Short and Medium Haul went moderate up by 2%. Air France reduced further its footprint in France.
*Cargo: a lower unit revenue compared to 2022 due to cargo market situation*
*Cargo business*
*Fourth quarter* *Full Year*
*2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Tons (thousands) 235 -0.3% 875 -6.1%
Capacity (ATK m) 3,577 +5.0% 14,076 +6.2%
Traffic (RTK m) 1,772 +0.9% 6,550 -4.9%
Load factor 49.5% -2.0pt 46.5% -5.4pt
Total Cargo revenues (€m) 651 -22.9% -20.3% 2,488 -29.0% -27.6%
Traffic Cargo revenues (€m) 510 -30.4% -28.2% 2,012 -34.0% -32.9%
Unit revenue per ATK (€ cts) 14.23 -33.8% -31.8% 14.29 -37.9% -36.8%
In the fourth quarter, unit revenue was below last year, driven by a -31% yield decrease and a 2 points lower load factor due to an increase of belly capacity. The yield is still 32% higher than 2019.
Compared to last year, full-year revenues dropped by -22.9% although less than previous quarters. The traffic was stable year over year at 0.9% on the back of a strong demand in 2022. The load factor was 2.0 points below 2022, due to the increased belly capacity. The yield declined as well resulting in a decrease in unit revenue per Available Ton Kilometer of -31.8% at constant currency.
*Transavia: full year load factor up by 4 points while capacity continued to increase*
*Transavia*
*Fourth quarter* *Full Year*
*2023* *change* *2023* *change*
Passengers (thousands) 4,611 +2.4% 21,464 +16.9%
Capacity (ASK m) 9,692 +2.9% 42,445 +13.6%
Traffic (RPK m) 8,163 +2.3% 37,800 +18.7%
Load factor 84.2% -0.5pt 89.1% +3.9pt
Total Passenger revenues (€m) 536 +4.4% 2,640 +19.0%
Unit revenue per ASK (€ cts) 5.61 +3.2% 6.34 +4.6%
Unit cost per ASK (€ cts) 6.79 +2.3% 6.56 +3.8%
Operating result (€m) -114 -1 -97 +2
The operating result of -€114 million in the fourth quarter is explained by seasonality and the geopolitical tensions in the Middle East (-€20m). Transavia’s capacity increased by 2.9%, traffic increased by 2.3%, and the number of passengers increased by 2.4% resulting in a broadly stable load factor at 84.2% in the fourth quarter.
During 2023, Transavia pursued its growth to respond to the demand and satisfy customer expectations with a capacity increase of +13.6% compared to 2022. In total, the company launched 35 new routes in 2023 to various destinations in Europe and beyond from several French airports.
The forward booking load factor for the first half of 2024 is broadly stable compared to last year awhile capacity continues to grow. Transavia France restarted as per 1^st of February to fly again to Israel.
*Maintenance business: Strong recovery in 2023 despite supply chain issues*
*Maintenance*
*Fourth quarter* *Full Year*
*2023* *change* *change*
*constant currency* *2023* *change* *change*
*constant currency*
Total revenues (€m) 1,208 +18.6% 4,242 +18.3%
Third party revenues (€m) 521 +28.7% +40.0% 1,712 +23.2% +26.9%
Operating result (€m) 25 +10 +15 150 -13 -6
Operating margin (%) 2.1% +0.6pt +0.9pt 3.5% -1.0pt -0.9pt
The maintenance segment continued its growth in the fourth quarter 2023. Total revenues increased by 18.6% compared with the same quarter last year while third party revenues increased by 40.0% at constant currency, showing a very strong recovery. The operating margin stood at 2.1%, which is 0.6 point higher than in 2022.
During 2023, external revenues strongly increased by +23.2% despite the supply chain disruption and a tight labour market.
The maintenance order book was evaluated at US$8.7 billion at December 31, 2023.
*Fleet*
Compared to the end of 2022 the group added three B787-10, seven A350-900, sixteen B737-800, sixteen A220-300, four Embraer 195-E2 and two Embraer 190. The Group welcomed as well its first A320 Neo and A321 Neo in December. The following aircraft left the fleet: three B737-700, three A321, two A320, six A319, three A318, three Embraer 170 and four CRJ-1000, as a result the fleet increased by twenty nine aircraft.
The Group will continue to invest in new generation aircraft in order to improve its economic performance and will decrease its C0[2] emission and reduce noise.
*Strong profitability for both airlines in 2023*
*Air France Group*
*Fourth quarter* *Full Year*
*2023* *change* *2023* *change*
Revenue (in €m) 4,552 +0.3% 18,518 +13.7%
EBITDA (in €m) 390 -142 2,657 +696
Operating result (in €m) -22 -165 1,085 +602
Operating margin (%) -0.5% -3.6pt 5.9% +2.9pt
Air France full-year performance is stemming from a strong performance of long-haul resulting in an increase of revenue of +13.7%. Operating result improved substantially to €1.1 billion, which is €602 million euros higher than last year. Transformation efforts as well as strong pricing momentum bore fruits and enabled Air France to improve its operating margin by 2.9pt, compared to 2022, to 5.9% despite the geopolitical situation faced since the second half of the year.
*KLM Group*
*Fourth quarter* *Full Year*
*2023* *change* *2023* *change*
Revenue (in €m) 2,993 +8.5% 12,050 +12.8%
EBITDA (in €m) 227 -34 1,572 -107
Operating result (in €m) -18 -16 650 -56
Operating margin (%) -0.6% -0.5pt 5.4% -1.2pt
KLM’s revenue grew by +12.8% on the back of improved operations, although not optimal yet due to supply chain, while operating margin stood at 5.4%, down -1.2pt compared to last year. KLM was operating with capacity constraints and in the fourth quarter some disruptions occurred linked to the bad weather in Amsterdam and weighted on the operating result development.
Nb: Sum of individual airline results does not add up to AF-KLM total due to intercompany eliminations at Group level.
The audit procedures have been completed. The audit report is in the process of being issued.
******
The results presentation is available at *www.airfranceklm.com* on February 29, 2024 from 7:15 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on February 29, 2024 at 08.30 am CET.
To connect to the webcast, please use below link:
*https://channel.royalcast.com/landingpage/airfranceklm/20240229_1/*
*Investor Relations* *Press Office*
*Michiel Klinkers* *Marouane Mami* +33 1 41 56 56 00
Michiel.klinkers@airfranceklm.com marouane.mami@airfranceklm.com mail.mediarelations@airfranceklm.com
*Income statement*
*Fourth Quarter* *Year to Date*
in € million *2023* *2022* *Variation* *2023* *2022* *Variation* restated * restated *
*Revenues from ordinary activities* *7,407* *7,128* *4* *%* *30,019* *26,393* *14* *%*
Aircraft fuel *-1,945* -2,057 -5 % *-7,305* -7,241 1 %
Carbon emission *-64* -82 -22 % *-203* -141 44 %
Chartering costs *-142* -101 41 % *-551* -387 42 %
Landing fees and air routes charges *-450* -439 3 % *-1,908* -1,710 12 %
Catering *-211* -195 8 % *-829* -720 15 %
Handling charges and other operating costs *-464* -418 11 % *-1,856* -1,608 15 %
Aircraft maintenance costs *-718* -613 17 % *-2,549* -2,256 13 %
Commercial and distribution costs *-244* -246 -1 % *-1,029* -887 16 %
Other external expenses *-530* -412 29 % *-1,909* -1,488 28 %
Salaries and related costs *-2,339* -2,049 14 % *-8,650* -7,289 19 %
Taxes other than income taxes *-32* -38 -16 % *-164* -156 5 %
Other income and expenses *333* 308 8 % *1,142* 1,105 3 %
*EBITDA* *601* *786* *-24* *%* *4,208* *3,615* *16* *%*
Amortization, depreciation and provisions *-657* -652 1 % *-2,496* -2,422 3 %
*Income from current operations* *-56* *134* *nm* *1,712* *1,193* *44* *%*
Sales of aircraft equipment *-1* 21 nm *32* 66 -52 %
Other non-current income and expenses *-79* *-21* *nm* *-67* -65 3 %
*Income from operating activities* *-136* *134* *nm* *1,677* *1,194* *40* *%*
Cost of financial debt *-157* -153 3 % *-600* -569 5 %
Income from cash & cash equivalent *77* 33 133 % *253* 41 nm
*Net cost of financial debt* *-80* *-120* *-33* *%* *-347* *-528* *-34* *%*
Other financial income and expenses *-27* 295 nm *-183* -324 -44 %
*Income before tax* *-243* *309* *nm* *1,147* *342* *nm*
Income taxes *12* 183 -93 % *-164* 390 nm
*Net income of consolidated companies* *-231* *492* *nm* *983* *732* *nm*
Share of profits (losses) of associates *–* 12 nm *7* 12 -42 %
*Net Income for the period* *-231* *504* *nm* *990* *744* *33* *%*
Non-controlling interests *25* 8 nm *56* 16 nm
*Net Income for the period - Equity holders* *-256* *496* *nm* *934* *728* *28* *%*
* Restated figures include the change in accounting principles for CO2 quotas
*Consolidated balance sheet*
*Assets * *December 31, 2023* *December 31, 2022*
(in € million) Restated *
Goodwill *224* 225
Intangible assets *1,128* 1,127
Flight equipment *11,501* 10,614
Other property, plant and equipment *1,431* 1,375
Right-of-use assets *5,956* 5,428
Investments in equity associates *129* 120
Pension assets *45* 39
Other non-current financial assets *1,262* 1,184
Non-current derivatives financial assets *148* 262
Deferred tax assets *698* 714
Other non-current assets *153* 78
*Total non-current assets* *22,675* *21,166*
Other current financial assets *1,292* 620
Current derivatives financial assets *122* 327
Inventories *853* 723
Trade receivables *2,152* 1,785
Other current assets *1,120* 979
Cash and cash equivalents *6,194* 6,626
Assets held for sale *82* 79
*Total current assets* *11,815* *11,139*
*Total assets* *34,490* *32,305*
* Restated figures include the change in accounting principles for CO2 quotas
*Liabilities and equity* *December 31, 2023* *December 31, 2022*
(in € million)
Issued capital *263* 2,571
Additional paid-in capital *7,560* 5,217
Treasury shares *-25* -25
Perpetual *1,076* 933
Reserves and retained earnings *-10,925* -11,700
*Equity attributable to equity holders of Air France-KLM* *-2,051* *-3,004*
Perpetual *2,524* 510
Reserves and retained earnings *27* 14
*Equity attributable Non-controlling interests* *2,551* *524*
*Total equity* *500* *-2,480*
Pension provisions *1,685* 1,634
Non-current return obligation liability and other provisions *3,805* 4,149
Non-current financial liabilities *7,538* 9,657
Non-current lease debt *3,581* 3,318
Non-current derivatives financial liabilities *56* 21
Deferred tax liabilities *—* 1
Other non-current liabilities *1,376* 2,343
*Total non-current liabilities* *18,041* *21,123*
Current return obligation liability and other provisions *1,079* 740
Current financial liabilities *1,664* 896
Current lease debt *848* 834
Current derivatives financial liabilities *139* 83
Trade payables *2,447* 2,424
Deferred revenue on ticket sales *3,858* 3,725
Frequent flyer programs *899* 900
Other current liabilities *5,002* 4,057
Bank overdrafts *13* 3
*Total current liabilities* *15,949* *13,662*
*Total equity and liabilities* *34,490* *32,305*
*Statement of Consolidated Cash Flows from January 1 until December 31*
*Period from January 1 to December 31* *2023* *2022*
(in € million) restated *
Net income *990* 744
Amortization, depreciation and operating provisions *2,496* 2,422
Financial provisions *216* 145
Loss (gain) on disposals of tangible and intangible assets *-63* -92
Loss (gain) on disposals of subsidiaries and associates *–* 1
Derivatives – non monetary result *-2* -4
Unrealized foreign exchange gains and losses, net *-92* 151
Share of (profits) losses of associates *-7* -12
Deferred taxes *106* -436
Impairment *1* 32
Other non-monetary items *-71* -204
*Self-financing capacity* *3,574* *2,747*
(Increase) / decrease in inventories *-135* -155
(Increase) / decrease in trade receivables *-330* -146
Increase / (decrease) in trade payables *-23* 570
Increase / (decrease) in advanced ticket sales *128* 1,092
Change in other assets and liabilities *-89* 574
*Change in working capital requirement* *-449* *1,935*
*Net cash flow from operating activities * *3,125* *4,682*
Acquisition of subsidiaries, of shares in non-controlled entities *-7* -3
Proceeds on disposal of subsidiaries, of shares in non-controlled entities *–* -1
Purchase of property plant and equipment and intangible assets *-3,551* -2,798
Proceeds on disposal of property plant and equipment and intangible assets *867* 880
Dividends received *3* 2
Decrease (increase) in net investments, more than 3 months *-540* -59
Acquisition of warrants (1) *-12* –
*Net cash flow used in investing activities* *-3,240* *-1,979*
Increase of equity *35* 1,551
Capital increase paid by shareholders and non-controlling interests *9* 3
Payments to acquire treasury shares *-1* –
Issuance of perpetual *2,718* 798
Repayment on perpetual *-595* -1,767
Coupon on perpetual *-92* -252
Issuance of debt *2,094* 1,110
Repayment on debt *-3,324* -3,078
Payments on lease debts *-833* -861
New loans *-335* -305
Repayment on loans *129* 45
Dividends paid *-90* –
*Net cash flow from financing activities* *-285* *-2,756*
Effect of exchange rate on cash and cash equivalents *-42* 22
*Change in cash and cash equivalents and bank overdrafts* *-442* *-31*
Cash and cash equivalents and bank overdrafts at beginning of period *6,623* 6,654
Cash and cash equivalents and bank overdrafts at end of period *6,181* 6,623
* Restated figures include the change in accounting principles for CO2 quotas
(1) Participation to warrants issue of GOL 26 September.
*Return on capital employed (ROCE)*
In € million *Dec 31, 2023* *Sept 30, 2023* *Jun 30,*
*2023* *Mar 31,*
*2023* *Dec 31,*
*2022* *Sept 30, 2022* *Jun 30,*
*2022* *Mar 31,*
*2022* *restated*^* (2)* *restated*^* (1) (2)* *restated *^*(1) (2)* *restated *^*(1) (2)* *restated *^*(1) (2)* *restated *^*(1) (2)*
Goodwill and intangible assets *1,352* 1,331 1,339 1,351 1,352 1,350 1,361 1,363
Flight equipment *11,501* 11,296 10,957 10,954 10,614 10,298 10,521 10,537
Other property, plant and equipment *1,431* 1,379 1,389 1,372 1,375 1,349 1,358 1,378
Right of use assets *5,956* 5,596 5,480 5,304 5,428 5,536 5,439 5,205
Investments in equity associates *129* 127 121 122 120 111 108 107
Financial assets excluding marketable securities, accrued interests and financial deposits *219* 191 190 169 169 164 162 158
Provisions, excluding pension, cargo litigation and restructuring *-4,346* -4,481 -4,248 -4,255 -4,347 -4,792 -4,473 -4,240
WCR ^(3) *-6,981* -7,804 -8,917 -8,696 -7,213 -7,609 -8,338 -6,736
*Capital employed* *9,261* *7,635* *6,311* *6,321* *7,498* *6,407* *6,138* *7,772*
*Average capital employed (A)* *7,382* *6,954*
Adjusted results from current operations 1,712 1,193
- Dividends received -1 -1
- Share of profits (losses) of associates 7 12
- Normative income tax -444 -311
*Adjusted result from current operations after tax (B)* *1,274* *893*
*ROCE, trailing 12 months (B/A)* *17.3%* *12.8%*
^(1) Proforma figures include restatement related to change in accounting scheme of ETS quotas (see financial statements of the period).
^(2) Compared to previous periods, the working ^capital has been restated to exclude the report of social & fiscal charges granted consequently to Covid.
^(3) Excluding the report of social & fiscal charges granted consequently to Covid.
*Net debt*
(in € million) *December 31, 2023* *December 31, 2022*
Current and non-current financial liabilities *9,202* 10,553
Current and non-current lease debt *4,429* 4,152
Accrued interest *-138* -127
Deposits related to financial liabilities *-107* -101
Deposits related to lease debt *-100* -99
Derivatives impact on debt *-1* -35
*Gross financial liabilities (I)* *13,285* *14,343*
Cash and cash equivalent *6,194* 6,626
Marketable securities > 3 months *1,097* 572
Bonds *966* 811
Bank overdrafts *-13* -3
*Net cash (II)* *8,244* *8,006*
*Net debt (I-II)* *5,041* *6,337*
*Adjusted operating free cash flow*
*Fourth Quarter* *Year to Date* *2023* *2022* *2023* *2022*
(in € million) *restated ** *restated **
Net cash flow from operating activities *-310* *206* *3,125* 4,682
Purchase of property plant and equipment and intangible assets *-1,271* *-750* *-3,551* -2,798
Proceeds on disposal of property plant and equipment and intangible assets *591* *202* *867* 880
*Operating free cash flow* *-990* *-342* *441* *2,764*
Payments on lease debts *-208* *-208* *-833* -861
*Operating free cash flow adjusted* *-1,198* *-550* *-392* *1,903*
* Restated figures include the change in accounting principles for CO2 quotas
*Bridge from EBITDA to Self-financing capacity*
*Fourth Quarter* *Year to Date* *2023* *2022* *2023* *2022*
(in € million) *restated ** *restated **
*EBITDA* *601* *786* *4,208* *3,615*
Provisions (risk and other) *-1* *-1* *-11* -16
Correction of spare parts inventory *–* *-5* *1* -1
Addition to pension provisions *44* *28* *153* 125
Reversal to pension provisions (cash-out) *-48* *-50* *-98* -100
Payment linked with shares *33* *–* *33* 1
Sales of tangible and intangible assets (excluding aeronauticals) *8* *-1* *4* -3
*Income from operating activities - cash impact* *637* *757* *4,290* *3,621*
Restructuring costs *-20* *-58* *-112* -233
Other non-current income and expenses *-3* *–* *-7* -7
Cost of financial liability *-159* *-153* *-710* -582
Financial income *72* *28* *231* 25
Realized foreign exchanges gain/loss *1* *-11* *37* -22
Settlement of forwards derivatives - cash *–* *–* *-3* –
Other financial charges & expenses - cash *-82* *–* *-97* -11
Current income tax *34* *-20* *-64* -46
Other elements *6* *1* *9* 2
*Self-financing capacity* *486* *544* *3,574* *2,747*
* Restated figures include the change in accounting principles for CO2 quotas
*Unit cost: net cost per ASK*
*Fourth Quarter* *Year to date* *2023* *2022* *2023* *2022*
Total operating expenses (in €m) *7,463* *6,994* *28,305* *25,198*
Total other revenues (in €m) *-807* *-673* *-2,768* *-2,284*
*Net cost (in €m)* *6,656* *6,320* *25,537* *22,913*
Capacity produced, reported in ASK *77,024* *72,632* *309,505* *282,761*
*Net cost per ASK (in € cents per ASK)* *8.64* *8.70* *8.25* *8.10*
Gross change *-0.7* *%* *1.8* *%*
Currency effect on net costs (in €m) *-129* *-245*
Change at constant currency *1.4* *%* *2.9* *%*
Fuel price effect (in €m) *-130* *-388*
*Net cost per ASK on a constant currency and constant fuel price *
*(in € cents per ASK)* *8.64* *8.35* *8.25* *7.88*
*Change at constant currency and constant fuel price* *3.5* *%* *4.7* *%*
*Furlough* *+4* *+269* *8.64* *8.35* *8.25* *7.97*
*Change at constant currency and constant fuel price excluding furlough* *3.5* *%* *3.5* *%*
*Group fleet at 31 December 2023*
*Aircraft type* *AF (incl. HOP)*^*2* *KL (incl. KLC & MP)*^*1* *Transavia* *Owned* *Finance lease* *Operating lease* *Total* *In operation* *Change vs 31/12/22*
B777-300 43 16 20 15 24 59 59
B777-200 18 15 28 1 4 33 33
B787-9 10 13 4 7 12 23 23
B787-10 10 2 8 10 10 3
A380-800 4 3 1 4
A350-900 27 3 10 14 27 26 6
A330-300 5 5 5 5
A330-200 15 6 11 10 21 21
Total Long-Haul *117* *65* ** *71* *41* *70* *182* *177* *9*
B737-900 5 5 5 5
B737-800 31 111 35 8 99 142 141 *16*
B737-700 6 4 7 3 10 10
A321NEO 1 1 1 1 *1*
A321 15 8 7 15 15 *-3*
A320NEO 1 1 1
A320 37 4 3 30 37 37 *-2*
A319 13 9 4 13 13 *-4*
A318 6 4 2 6 6 *-3*
A220-300 32 22 10 32 32 17
Total Medium-Haul *103* *42* *117* *94* *11* *157* *262* *260* *22*
Canadair Jet 1000 2 2 2
Embraer 195 E2 18 18 18 18 *4*
Embraer 190 21 30 17 4 30 51 50 *1*
Embraer 175 17 3 14 17 17
Embraer 170 13 10 3 13 13
Total Regional *36* *65* ** *32* *18* *51* *101* *98* *5*
B747-400ERF 3 3 3 3
B747-400BCF 1 1 1 1
B777-F 2 2 2 2
Total Cargo *2* *4* ** *4* ** *2* *6* *6* **
*Total* *258* *176* *117* *201* *70* *280* *551* *541* *36*
*2023 TRAFFIC*
*Passenger network activity*
*Fourth quarter* *Year to date*
*Total network airlines* *2023* *2022* *variation* *2023* *2022* *variation*
Passengers carried (‘000s) 17,736 16,490 8% 72,101 64,968 11%
Revenue pax-kilometers (m RPK) 57,527 54,373 6% 232,334 205,667 13%
Available seat-kilometers (m ASK) 67,333 63,216 7% 267,061 245,391 9%
Load factor (%) 85% 86% -1pt 87% 84% 3pt
*Long-haul*
Passengers carried (‘000s) 6,407 6,119 5% 25,652 22,887 12%
Revenue pax-kilometers (m RPK) 47,987 45,465 6% 191,386 168,184 14%
Available seat-kilometers (m ASK) 55,654 52,138 7% 217,864 198,817 10%
Load factor (%) 86% 87% -1pt 88% 85% 3pt
*North America*
Passengers carried (‘000s) 2,217 2,063 7% 9,192 8,279 11%
Revenue pax-kilometers (m RPK) 15,709 14,792 6% 65,290 59,375 10%
Available seat-kilometers (m ASK) 18,293 17,101 7% 74,667 70,608 6%
Load factor (%) 86% 86% -1pt 87% 84% 3pt
*Latin America*
Passengers carried (‘000s) 850 859 -1% 3,480 3,102 12%
Revenue pax-kilometers (m RPK) 8,047 8,175 -2% 33,025 29,502 12%
Available seat-kilometers (m ASK) 9,060 9,031 0% 36,536 33,097 10%
Load factor (%) 89% 91% -2pt 90% 89% 1pt
*Asia / Middle East*
Passengers carried (‘000s) 1,463 1,149 27% 5,341 3,623 47%
Revenue pax-kilometers (m RPK) 11,516 8,544 35% 41,762 26,104 60%
Available seat-kilometers (m ASK) 13,516 10,060 34% 47,924 32,913 46%
Load factor (%) 85% 85% 0pt 87% 79% 8pt
*Africa*
Passengers carried (‘000s) 1,020 1,040 -2% 4,144 3,870 7%
Revenue pax-kilometers (m RPK) 6,370 6,358 0% 25,548 23,170 10%
Available seat-kilometers (m ASK) 7,524 7,449 1% 29,804 27,973 7%
Load factor (%) 85% 85% -1pt 86% 83% 3pt
*Caribbean / Indian Ocean*
Passengers carried (‘000s) 856 1,007 -15% 3,495 4,012 -13%
Revenue pax-kilometers (m RPK) 6,345 7,595 -16% 25,762 30,032 -14%
Available seat-kilometers (m ASK) 7,260 8,496 -15% 28,933 34,225 -15%
Load factor (%) 87% 89% -2pt 89% 88% 1pt
*Short and Medium-haul*
Passengers carried (‘000s) 11,329 10,371 9% 46,450 42,081 10%
Revenue pax-kilometers (m RPK) 9,541 8,909 7% 40,948 37,483 9%
Available seat-kilometers (m ASK) 11,679 11,079 5% 49,197 46,574 6%
Load factor (%) 82% 80% 1pt 83% 80% 3pt
*Transavia activity*
*Fourth quarter* *Year to date*
*Transavia* *2023* *2022* *variation* *2023* *2022* *variation*
Passengers carried (‘000s) 4,611 4,505 2% 21,464 18,355 17%
Revenue seat-kilometers (m RSK) 8,163 7,983 2% 37,800 31,834 19%
Available seat-kilometers (m ASK) 9,692 9,416 3% 42,445 37,369 14%
Load factor (%) 84% 85% -1pt 89% 85% 4pt
*Total Group passenger activity*
*Fourth quarter* *Year to date*
*Total Group* *2023* *2022* *variation* *2023* *2022* *variation*
Passengers carried (‘000s) 22,347 20,995 6% 93,565 83,323 12%
Revenue pax-kilometers (m RPK) 65,691 62,356 5% 270,134 237,501 14%
Available seat-kilometers (m ASK) 77,024 72,632 6% 309,505 282,761 9%
Load factor (%) 85% 86% -1pt 87% 84% 3pt
*Cargo activity*
*Fourth quarter* *Year to date*
*Cargo* *2023* *2022* *variation* *2023* *2022* *variation*
Revenue tonne-km (m RTK) 1,772 1,757 1% 6,550 6,889 -5%
Available tonne-km (m ATK) 3,577 3,407 5% 14,076 13,260 6%
Load factor (%) 50% 52% -2pt 47% 52% -5pt
*Air France activity*
*Fourth quarter* *Year to date*
*Total Passenger network activity* *2023* *2022* *variation* *2023* *2022* *variation*
Passengers carried (‘000s) 10,025 10,153 -1% 41,769 39,130 7%
Revenue pax-kilometers (m RPK) 34,581 33,137 4% 139,682 123,378 13%
Available seat-kilometers (m ASK) 40,610 38,248 6% 160,725 146,731 10%
Load factor (%) 85% 87% -1pt 87% 84% 3pt
*Long-haul*
Passengers carried (‘000s) 4,026 3,824 5% 15,993 14,261 12%
Revenue pax-kilometers (m RPK) 29,496 27,671 7% 116,500 101,245 15%
Available seat-kilometers (m ASK) 34,400 31,583 9% 132,924 119,431 11%
Load factor (%) 86% 88% -2pt 88% 85% 3pt
*Short and Medium-haul*
Passengers carried (‘000s) 5,999 6,328 -5% 25,777 24,868 4%
Revenue pax-kilometers (m RPK) 5,085 5,466 -7% 23,182 22,133 5%
Available seat-kilometers (m ASK) 6,210 6,665 -7% 27,801 27,300 2%
Load factor (%) 82% 82% 0pt 83% 81% 2pt
*Cargo activity*
Revenue tonne-km (m RTK) 910 929 -2% 3,307 3,559 -7%
Available tonne-km (m ATK) 2,050 1,953 5% 7,989 7,497 7%
Load factor (%) 44% 48% -3pt 41% 47% -6pt
*KLM activity*
*Fourth quarter* *Year to date*
*Total Passenger network activity* *2023* *2022* *variation* *2023* *2022* *variation*
Passengers carried (‘000s) 7,711 6,337 22% 30,332 25,838 17%
Revenue pax-kilometers (m RPK) 22,946 21,236 8% 92,652 82,289 13%
Available seat-kilometers (m ASK) 26,722 24,968 7% 106,336 98,660 8%
Load factor (%) 86% 85% 1pt 87% 83% 4pt
*Long-haul*
Passengers carried (‘000s) 2,381 2,294 4% 9,659 8,626 12%
Revenue pax-kilometers (m RPK) 18,491 17,793 4% 74,885 66,939 12%
Available seat-kilometers (m ASK) 21,254 20,555 3% 84,940 79,386 7%
Load factor (%) 87% 87% –pt 88% 84% 4pt
*Short and Medium-haul*
Passengers carried (‘000s) 5,330 4,043 32% 20,673 17,212 20%
Revenue pax-kilometers (m RPK) 4,456 3,443 29% 17,766 15,350 16%
Available seat-kilometers (m ASK) 5,468 4,413 24% 21,396 19,274 11%
Load factor (%) 81% 78% 3pt 83% 80% 3pt
*Cargo activity*
Revenue tonne-km (m RTK) 862 828 4% 3,244 3,330 -3%
Available tonne-km (m ATK) 1,526 1,453 5% 6,087 5,762 6%
Load factor (%) 56% 57% 0pt 53% 58% -4pt
--------------------
1 against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)
2 Excluding Transavia
*Attachment*
· 2023 Q4 - AFKLM - Press release