Air France KLM First Half 2017 Results.
Result improvement driven by solid traffic and unit revenue performance
- Robust traffic resulting in an improved load factor, up 1.4 pts compared to last year
- Confirmation of the positive trend in Group (Passenger + Transavia) unit revenue per available seat kilometer (RASK) ex-currency: +1.9% during the Second Quarter
- First Half operating result 353 million euros, up 135 million euros
- Major advances in strengthening the network of alliances
- Air France Pilot agreement paving the way for the creation of Joon
- Air France Cabin crew signed 5-year labor agreement
- Long haul forward bookings for coming four months above previous year’s level
- Unit revenue variation at constant currency expected to be slightly up for the Second Half 2017
- Despite the negative effects of the increased load factor and profit sharing on the unit cost evolution, the Group is expecting a unit cost reduction for 2017 between 1.0% and 1.5% at constant currency, fuel price and pension related expenses.
- Expected decrease in fuel bill in Second Half 2017 to be 100 million euros
- Target of positive free cash flow before disposals reiterated with capex at the high-end of the 1.7-2.2 billion euros range
In a context of solid traffic growth and enhanced unit revenue trend, Air France-KLM delivered improved operating income and operating free cash flow. Over the period, the Group continued to execute on its strategic priorities of growing revenues and improve competitiveness. The agreement reached with Air France pilots in July allows the Group to launch the creation of Joon in line with the original schedule. I am also very pleased with the strengthening of our network of alliances: the combination between our North-Atlantic alliance with Delta and Delta and Virgin Atlantic joint-venture, and the reinforcement of our partnership with China Eastern position Air France-KLM as the European pillar of the leading global airline network. These are important milestones showing that Air France-KLM is on the right path to achieve Trust Together’s strategic objectives.
Jean Marc Janaillac, Chairman and CEO of Air France-KLM