KLM Newsroom

Positive results in KLM‘s annual report 2015

Tue, 05 Apr 2016 16:38:56 +0200

One of the main things KLM did in 2015 was to reconfirm the strategy of decreasing costs, investing in our future and transforming our organisation. As part of the AIR FRANCE KLM Group strategy Perform 2020, we took action throughout the year on all three fronts and began to see the first tangible results. Our costs are down, our productivity is up and our investments in customer and products are bearing fruit. KLM has continued to grow and show positive financial results. The report also details the year’s results according to the five pillars of KLM’s Flight Plan 2015: Customer and Product, Network and Fleet, Operations, People and Organisation and Finance.

KLM staff share in the company’s improved results
This year, all KLM staff with a Dutch contract will benefit from the company’s preliminary improvements in its operational results. The collective labour agreements from recent years have included arrangements to let the staff share in the profits. On 18 February, KLM published its 2015 annual results. With operational results of EUR 388 million, the profit-sharing scheme will now be paid out.

Furthermore, we did not give pay rises to management in 2016. This is in line with the business challenges that KLM now faces. The salaries fall far below the market average. Every year the KLM Supervisory Board evaluates KLM’s remuneration policy and the company’s actual results. As is the case for a large number of KLM staff, a system of variable income also applies for management. The KLM Supervisory Board sets this variable income based on the achievement of the company’s financial and non-financial targets. The size of this variable income is determined in part by KLM’s and AIR FRANCE KLM’s operational results (EBITDA).

(*) The annual report 2015 can be found by clicking on the image.

Air France KLM - Full Year 2015 Results.

Thu, 18 Feb 2016 07:15:00 +0100

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.

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 1^st 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.

	Full Year
EBITDA per business (€m)	2015	2014ex strike	Change like-for-like
Passenger network	2,124	1,617	+625
Cargo	-210	-126	-43
Maintenance	453	464	-49
Transavia	2	-8	+41
Other	78	67	+2
Total	2,447	2,014	+576

Full Year 2015 EBITDA improved by 341 million euros like-for-like at Air France and 221 million euros like-for-like at KLM. EBITDA margins were up at both airlines, reaching 9.3% at Air France and 9.2% at KLM.

	Full Year
EBITDA per airline (€m)	2015	2014ex strike	Change like-for-like
Air France	1,525	1,282	+341
EBITDA margin	9.3%	8.0%	+1.1 pt
KLM	911	722	+221
EBITDA margin	9.2%	7.5%	+1.9 pt
Other/ eliminations	11	9	+14
Total	2,447	2,014	+576

The Full Year 2015 operating result stood at 816 million euros versus -129 million euros in 2014, a 945 million euro increase. Like-for-like, the operating result increased by 698 million euros, corrected for the strike (impact of 425 million euros) and currency effects (negative impact of 178 million euros).

The net result, group share stood at 118 million euros against a loss of 225 million euros a year ago. It included notably the non-current result related to the capital gain on the sale of Amadeus shares (+218 million euros) and the London Heathrow slots (+230 million euros), offset by the change in value of the hedging portfolio (-225 million euros), the unrealized foreign exchange loss (-360 million euros) and restructuring costs (-159 million euros). On an adjusted basis, the net result, group share stood at 220 million euros against -540 million euros in 2014, an 760 million euro increase.

Earnings and diluted earnings per share stood at 0.34 euros (-0.75 euros in 2014), and at0.68 euros on an adjusted basis (-1.82 euros in 2014). The Board of Directors decided not to submit a proposed dividend distribution to the next Annual General Meeting.

The return on capital employed² (ROCE) increased by 3.4 points to 8.6% at year end 2015.

[1] 2016 average Brent price of USD 37, average jet fuel market price of USD 365 per ton, assuming average exchange rate of 1.10 USD per euro for January-December 2016.

Fourth Quarter 2015

In the Fourth Quarter 2015, total revenues stood at 6.3 billion euros versus 6.2 billion euros in 2014, up 2.2%, but down -3.4% on a like-for-like basis. Currencies had a positive 276 million euro impact on revenues, primarily due to the strengthening of the dollar against the euro.

EBITDAR stood at 816 million euros, up by 273 million euros versus 2014. EBITDA amounted to 551 million euros, up by 235 million euros. On a like-for-like basis, EBITDA increased by 188 million euros, primarily driven by the strong increase of the passenger network performance.

The operating result stood at 150 million euros versus -169 million euros in 2014. Currencies had a 59 million euro negative impact on the operating result in Fourth Quarter 2015.

Passenger network[1]

Passenger network	Full Year 2015	Full Year 2014	*Change*	*Change* *like-for-like*
Passengers (thousands)	79,016	77,450	+2.0%
Capacity (ASK m)	276,899	270,789	+2.3%	+0.7%
Traffic (RPK m)	235,715	229,347	+2.8%	+1.2%
Load factor	85.1%	84.7%	+0.4 pt	+0.4 pt
Total passenger revenues (€m)	20,541	19,570	+5.0%	-2.6%
Scheduled passenger revenues (€m)*	19,707	18,740	+5.2%	-2.6%
Unit revenue per ASK (€ cts)	7.12	6.92	+2.8%	-3.3%
Unit revenue per RPK (€ cts)	8.36	8.17	+2.3%	-3.7%
Unit cost per ASK (€ cts)	6.81	6.95	-2.0%	-6.7%
Operating result (€m)	842	-83	+925	+687
Of which long-haul (estimated)	1,140	740	+400
Of which medium-haul hub feeding (est.)	-230	-320	+90
Of which medium-haul point-to-point (est.)	-70	-120	+50

* FY 2014 restated for change in revenue allocation (45 million euros transferred from “other passenger” to “scheduled passenger revenues”)

Full Year 2015 total passenger revenues amounted to 20,541 million euros, up 5.0% and down 2.6% like-for-like. The operating result of the passenger business stood at 842 million euros, versus a loss of 83 million euros over the Full Year 2014, an increase of 925 million euros. Like-for-like, the operating result improved by 687 million euros.

The Group maintained its strict capacity discipline, increasing total passenger capacity by 0.7% excluding the strike impact. Unit revenue per Available Seat Kilometer (RASK) remained volatile, up 2.0% in nominal value strike corrected and down by 3.3% on a like-for-like basis.

On the long-haul network, the capacity measured in ASKs was up 3.0%, while unit revenue was down 4.4% excluding currency impact, affected by the capacity-demand imbalances observed on different parts of the network, and by the large drop in demand out of Brazil and Japan. In addition, several routes were affected by travel budget reductions implemented by oil and gas related customers, notably to Africa. Nevertheless, the estimated long-haul operating result was up 400 million euros to 1,140 million euros.

As planned, medium-haul point-to-point capacity (excluding the Paris and Amsterdam hubs) was further reduced by 11.5%, leading to a significant improvement in unit revenue of +7.0% like-for-like contributing to the improvement of the point-to-point operating result by 50 million euros. The medium-haul feeding activity (the Paris and Amsterdam hubs) unit revenues decreased by 1.6% like-for-like. The medium-haul hub feeding estimated operating result stood at a loss of 230 million euros, an improvement of 90 million euros versus Full Year 2014.

The unit cost per Available Seat Kilometer (CASK) was further reduced by 6.7% like-for-like. Excluding the positive impact of the fuel bill and the additional pension charges, the CASK decreased by 0.5% over the year.

Over the Full Year 2016, the Group will maintain its strict capacity discipline in the passenger business, with planned stable capacity.

Passenger network	Q4 2015	Q4 2014	*Change*	*Change* *Like-for-like*
Passengers (thousands)	19,156	19,095	+0.3%
Capacity (ASK m)	67,636	67,019	+0.9%	+0.9%
Traffic (RPK m)	56,719	55,763	+1.7%	+1.7%
Load factor	83.9%	83.2%	+0.7 pt	+0.7 pt
Total passenger revenues (€m)	4,983	4,861	+2.5%	-2.7%
Scheduled passenger revenues (€m)*	4,787	4,648	+3.0%	-2.3%
Unit revenue per ASK (€ cts)	7.08	6.94	+2.1%	-3.2%
Unit revenue per RPK (€ cts)	8.44	8.34	+1.3%	-4.0%
Unit cost per ASK (€ cts)	6.85	7.19	-4.8%	-9.9%
Operating result (€m)	156	-171	+327	+292

* Q4 2014 restated for change in revenue allocation (16 million euros transferred from “other passenger” to “scheduled passenger revenues”)

In the Fourth Quarter of 2015, passenger revenues amounted to 4,983 million euros, up 2.5%, but down 2.7% like-for-like. The revenues were impacted by the terrorist attacks in Paris in November 2015, with an estimated negative impact of 120 million euros. The operating result of the passenger business stood at 156 million euros, versus -171 million euros in the same period last year, up 327 million euros on a reported basis and up 292 million euros like-for-like.

Unit revenue per Available Seat Kilometer (RASK) increased by 2.1% and decreased by 3.2% like-for-like.

Cargo business

Cargo	Full Year 2015	Full Year 2014	*Change*	*Change* *Like-for-like*
Tons (thousands)	1,206	1,303	-7.5%
Capacity (ATK m)	14,908	15,608	-4.5%	-5.8%
Traffic (RTK m)	9,008	9,843	-8.5%	-10.0%
Load factor	60.4%	63.1%	-2.6 pt	-2.7 pt
Total external revenues (€m)	2,425	2,681	-9.5%	-17.4%
Scheduled cargo revenues (€m)	2,263	2,509	-9.8%	-17.8%
Unit revenue per ATK (€ cts)	15.18	16.08	-5.6%	-12.8%
Unit revenue per RTK (€ cts)	25.12	25.49	-1.4%	-8.8%
Unit cost per ATK (€ cts)	16.82	17.43	-3.5%	-10.8%
Operating result (€m)	-245	-212	-33	-14

The Group continued to restructure its Cargo activity to address weak global trade from/to Europe and structural air cargo industry overcapacity. During Full Year 2015, full-freighter capacity was reduced by more than 23%, leading to a strike-adjusted decrease in total capacity of 5.8%. Revenue per Available Ton Kilometer (ATK) was down by 12.8% like-for-like, reflecting the persistently weak demand.

Cargo unit cost was down 10.8% like-for-like, as a result of the lower fuel price and of the good cost performance. Unit cost excluding fuel price and currency was down 2.5% in spite of the capacity reduction. Headcount was reduced by 8.8% over the course of the year.

Within the framework of Perform 2020, the Group phased out 5 full-freighters during 2015 and plans to operate only 5 full-freighters by summer 2016. This reduction should enable the full-freighter business to return to operating breakeven in 2017. The loss for the full-freighter activity was reduced to 42 million euro, a significant decrease by 55 million euros during Full year 2015.

Cargo	Q4 2015	Q4 2014	*Change*	*Change* *Like-for-like*
Tons (thousands)	309	334	-7.7%
Capacity (ATK m)	3,631	3,944	-7.9%	-7.9%
Traffic (RTK m)	2,297	2,546	-9.8%	-9.8%
Load factor	63.3%	64.6%	-1.3 pt	-1.3 pt
Total Cargo revenues (€m)	612	714	-14.3%	-19.5%
Scheduled cargo revenues (€m)	567	676	-16.1%	-21.3%
Unit revenue per ATK (€ cts)	15.62	17.14	-8.9%	-14.6%
Unit revenue per RTK (€ cts)	24.68	26.55	-7.0%	-12.8%
Unit cost per ATK (€ cts)	16.25	17.90	-9.2%	-14.9%
Operating result (€m)	-23	-31	+8	+9

In the Fourth Quarter of 2015, cargo revenues amounted to 612 million euros, down 14.3%. On a like-for-like basis, revenue were down by 19.5% and unit revenue per Available Ton Kilometer (RATK) decreased by 14.6%.

The Group continued its efforts to reduce unit costs, down 14.9% on a like-for-like basis. The operating result improved by 9 million euros like-for-like.

Maintenance

Maintenance	Full Year 2015	Full Year 2014	*Change*	*Change* *Like-for-like*
Total revenues (€m)	4,012	3,392	+18.3%
Third party revenues (€m)	1,577	1,251	+26.1%	7.3%
Operating result (€m)	214	174	+40	-20
Operating margin (%)	5.3%	5.1%	+0.2 pt	-0.8 pt

Full Year 2015 third party maintenance revenues amounted to 1,577 million euros, up 26.1% and by 7.3% like-for-like. Revenues benefited not only from the strong dollar relative to the euro and from the contracts gained in previous years.

Over the period, the Group recorded a 12% increase in its order book to 8.4 billion dollars, including significant contract wins with contracts for GE90 engines and B787 components.

The operating result amounted to 214 million euros, up 40 million, corresponding to an operating margin of 5.3%. Like-for-like, the operating results decreased by 20 million euros.

Maintenance	Q4 2015	Q4 2014	*Change*	*Change* *Like-for-like*
Total revenues (€m)	1,080	919	+17.5%
Third party revenues (€m)	429	356	+20.5%	6.0%
Operating result (€m)	47	61	-14	-23
Operating margin (%)	4.4%	6.6%	-2.3 pt	-2.7 pt

In the Fourth Quarter of 2015, third party maintenance revenues were 429 million euros, up 20.5% and up 6.0% like-for-like. The operating result decreased by 14 million euros to 47 million euros.

Transavia

Transavia	Full Year 2015	Full Year 2014*	*Change*
Passengers (thousands)	10,805	9,908	+9.1%
Capacity (ASK m)	22,432	21,299	+5.3%
Traffic (RPK m)	20,169	19,136	+5.4%
Load factor	89.9%	89.8%	+0.1 pt
Total passenger revenues (€m)	1,099	1,056	+4.1%
Scheduled passenger revenues (€m)	1,086	1,046	+3.8%
Unit revenue per ASK (€ cts)	4.84	4.92	-1.6%
Unit revenue per RPK (€ cts)	5.38	5.48	-1.7%
Unit cost per ASK (€ cts)	5.00	5.09	-1.8%
Operating result (€m)	-35	-36	+1

* FY 2014 restated for change in revenue allocation (45 million euros transferred from “other passenger” to “scheduled passenger revenues”)

In the Full Year 2015, as planned within the Perform 2020 framework, Transavia capacity was up by 5.3%, reflecting the accelerated development in France (capacity up by 24.6%) and the ongoing repositioning in the Netherlands (with scheduled capacity up 17% and charter capacity down 13%). Traffic rose by 5.4% and passengers approached 11 million. The load factor remained high (89.9%, up 0.1 point) despite the strong increase in capacity.

Total revenues stood at 1,099 million euros, up 4.1%. Unit revenue per ASK decreased by 1.6% while unit cost per ASK decreased by 1.8%. The operating result was -35 million euros, up 1 million euro.

The development of Transavia will further accelerate in 2016 with overall ASK + 15%, with the main contributions being the growth in capacity in Transavia France and the opening of the new Munich base in March 2016, starting with 4 B737-aircraft serving 18 destinations.

Transavia	Q4 2015	Q4 2014*	*Change*
Passengers (thousands)	2,167	1,952	+11.0%
Capacity (ASK m)	4,592	4,316	+6.4%
Traffic (RPK m)	4,006	3,794	+5.6%
Load factor	87.2%	87.9%	-0.7 pt
Total passenger revenues (€m)	207	193	+7.2%
Scheduled passenger revenues (€m)	205	191	+7.3%
Unit revenue per ASK (€ cts)	4.45	4.47	-0.4%
Unit revenue per RPK (€ cts)	5.10	5.09	+0.3%
Unit cost per ASK (€ cts)	5.25	5.25	+0.1%
Operating result (€m)	-37	-34	-3

* Q4 2014 restated for change in revenue allocation (10 million euros transferred from “other passenger” to “scheduled passenger revenues”)

In the Fourth Quarter of 2015, Transavia capacity was up 6.4%. Traffic rose by 5.6% resulting in a load factor decrease of 0.7 point to 87.2%. Unit revenue per ASK was down 0.4%. Transavia’s total revenue stood at 207 million euros, up 7.2%. The operating result was -37 million euros, down 3 million euros year-on-year.

Other business: Catering

Catering	Full Year 2015	Full Year 2014	*Change*
Total revenues (€m)	947	871	+8.7%
Third party revenues (€m)	374	311	+20.3%
EBITDA (€m)	62	42	+20
Operating result (€m)	37	18	+19

In Full Year 2015, third party catering revenues amounted to 374 million euros, up 20.3%, reflecting the signature of new contracts and the launch of new operations in Africa, Asia and Latin America. The operating result stood at 37 million euros, up 19 million euros.

Financial situation

In € million	Full Year 2015	Full Year 2014	*Change*
Cash flow before change in WCR and Voluntary Departure Plans, continued operations	+1,997	+1,039	+958
Cash out related to Voluntary Departure Plans	-172	-154	-18
Change in Working Capital Requirement (WCR)	+75	+113	-38
Operating cash flow	+1,900	+998	+902
Net investments before sale & lease-back	-1,294	-1,360	+66
Cash received through sale & lease-back transactions	-	+198	-198
Net investments after sale & lease-back	-1,294	-1,162	-132
Operating free cash flow	+606	-164	+770
Of which intangible asset disposal (LHR slots)	+246	-	+246
Adjusted operating free cash flow	+360	-164	+524

In Full Year 2015, the operating cash flow before change in working capital requirement (WCR) and cash out related to Voluntary Departure Plans increased by 958 million euros to 1,997 million euros, .

The Group disbursed 172 million euros for Voluntary Departure Plans. The change in WCR contributed 75 million euros to operating cash flow. Net investments stood at 1,294 million euros, including the disposal of the London Heathrow slots amounting to 246 million euros. Excluding the slots, net investments stood at 1,540, an increase of 378 million euros.

As a result, operating free cash flow amounted to 606 million euros, versus a negative 164 million euros a year earlier.

Operating free cash flow does not include free cash flow from financial investments, including the cash-in of 327 million euros from the sale of Amadeus shares in January and the hybrid bond transaction in April raising 600 million euros.

Net debt amounted to 4.3 billion euros at 31 December 2015, versus 5.4 billion euros at 31 December 2014. The 12 months trailing adjusted net debt / EBITDAR ratio stood at 3.3x at 31 December 2015 compared to 4.0x at 31 December 2014 excluding strike impact.

The balance sheet pension situation moved from a net liability of 710 million euros at 31 December 2014 to a net liability of 222 million euros at 31 December 2015, an improvement of 488 million euros as a result of changes in actuarial assumptions (pension indexation) and 10 year discount rate (1.65% to 1.80%).

The Group continues to enjoy a good level of liquidity, with net cash of 3.8 billion euros at 31 December 2015, and undrawn credit lines of 1.78 billion euros that were renewed in 2015.

Outlook

The Group is currently deploying all the operational initiatives planned within the framework of the strategic plan Perform 2020:

The continuous development of the passenger network business based on an upgraded product offer, an increased customer focus, a stronger positioning of brands and the reinforcement of strategic partnerships.
The further optimization of its Air France point-to-point operations, with the creation of a single structure, aiming at a return to operating breakeven by 2017.
A new step in the accelerated development in the European leisure market, under the Transavia brand, growing by 20% on the French market in 2016 and the opening of the new Munich base in March 2016 with 101 weekly flights throughout the 2016 summer season
The finalisation of the cargo repositioning with a fleet reduced to 5 full-freighter as per June 2016
The continuous development of the maintenance business

In parallel, a structured approach to achieve unit cost reduction is being deployed across all entities of the Group, and cost reduction initiatives are being rolled out.

The global context in 2016 remains highly uncertain regarding fuel prices, the continuation of the overcapacity situation on several markets and the geopolitical and economic context in which we operate. In consequence, the Group expects the expected savings on the fuel bill to be significantly offset by unit revenue pressure and negative currency impacts.

Under these conditions, the Group is expecting for 2016:

Free operating cash flow generation after disposals between 0.6 billion euros and 1.0 billion euros. The 2016 investment plan (between 1.6 billion euros and 2.0 billion euros) and disposals programme (between 0.2 billion euros and 0.5 billion euros) will be adjusted depending upon operating cashflow generation
2016 unit cost reduction target around 1%
Further significant reduction in net debt

Based on current market conditions and without any major adverse event, the Group is retaining its unit cost reduction target being an average of 1.5% per year, amending the related period from 2015-2017 to 2016-2018.

The Group is maintaining its medium term financial targets:

Adjusted net debt²/EBITDAR ratio of around 2.5 by end 2017
Base businesses to consistently generate annual positive free cash flow
ROCE of 9% to 11% in 2017

*****

The audit procedures for the consolidated accounts have taken place. The certification report will be published following the completion of procedures necessary for the filing of the Registration Document.

The results presentation is available at www.airfranceklm.com on 18 February 2016 from 7:15am CET.

A press conference will be held on 18 February 2016 at 10.30 CET at the Pullman Paris Tour Eiffel hotel, 18, avenue de Suffren (75015 Paris).

A live webcast of the press conference will also be available on the website (password AFKL).

[1] Air France, KLM and HOP!. Transavia is reported in its own business segment.

INCOME STATEMENTS

		Fourth Quarter			Full Year
	In million euros	2015	2014*	Change	2015	2014*	Change

Sales		6,346	6,212	2.2%	26,059	24,912	4.6%
Other revenues		2	1	100%	3	18	-83%
External Expenses		-3,812	-3,890	-2.0%	-15,682	-15,171	3.4%
Aircraft fuel		-1,363	-1,703	-20%	-6,183	-6,629	-6.7%
Chartering costs		-105	-109	-3.7%	-430	-438	-1.8%
Landing fees and en route charges		-469	-455	3.1%	-1,947	-1,840	5.8%
Catering		-161	-147	9.5%	-655	-591	11%
Handling charges and other operating costs		-389	-377	3.2%	-1,536	-1,476	4.1%
Aircraft maintenance costs		-715	-480	49%	-2,372	-1,729	37%
Commercial and distribution costs		-193	-205	-5.9%	-896	-870	3.0%
Other external expenses		-417	-414	0.7%	-1,663	-1,598	4.1%
Salaries and related costs		-1,980	-1,891	4.7%	-7,852	-7,636	2.8%
Taxes other than income taxes		-37	-39	-5.1%	-167	-169	-1.2%
Other income and expenses		297	150	98%	1,113	508	119%
EBITDAR		816	543	50%	3,474	2,462	41%
Aircraft operating lease costs		-265	-227	17%	-1,027	-873	17%
EBITDA		551	316	74%	2,447	1,589	54%
Amortization, depreciation and provisions		-401	-485	-17%	-1,631	-1,718	-5.1%
Income from current operations		150	-169	NA	816	-129	NA
Sales of aircraft equipment		-2	5	NA	-6	0	NA
Sales of subsidiaries		0	0	NA	224	185	21%
Other non-current income and expenses		217	805	-73%	81	695	NA
Income from operating activities		365	641	-43%	1,115	751	48%
Income from cash and cash equivalents		16	19	-16%	63	76	-17%
Cost of financial debt		-82	-109	-25%	-373	-446	-16%
Net cost of financial debt		-66	-90	-27%	-310	-370	-16%
Foreign exchange gains (losses), net		-40	-20	-100%	-360	-199	-81%
Change in fair value of financial assets and liabilities		46	54	-15%	-178	-92	-94%
Other financial income and expenses		0	-31	NA	-67	-68	-1.5%
Income before tax		305	554	-45%	200	22	808%
Income taxes		-29	-216	-87%	-43	-195	-78%
Net income of consolidated companies		276	338	-18%	157	-173	NA
Share of profits (losses) of associates		4	-24	NA	-30	-39	23%
Income from continuing operations		280	314	-11%	127	-212	NA
Net income from discontinued operations		0	0	NA	0	-4	NA
Net income for the period		280	314	-11%	127	-216	NA
Minority interest		-4	-6	-33%	-9	-9	0.0%
Net income for the period - Group		276	308	-10%	118	-225	NA

* Restated, see page 17

CONSOLIDATED BALANCE SHEET

Assets In million euros	December 31, 2015	December 31, 2014*
Goodwill	247	243
Intangible assets	1,018	1,009
Flight equipment	8,743	8,728
Other property, plant and equipment	1,670	1,750
Investments in equity associates	118	139
Pension assets	1,773	1,409
Other financial assets	1,224	1,502
Deferred tax assets	702	1,042
Other non-current assets	295	243
Total non-current assets	15,790	16,065
Assets held for sale	4	3
Other short-term financial assets	967	787
Inventories	532	538
Trade accounts receivables	1,800	1,728
Other current assets	1,138	961
Cash and cash equivalents	3,104	3,159
Total current assets	7,545	7,176
Total assets	23,335	23,241

* Restated, see page 17

Liabilities and equity In million euros	December 31, 2015	December 31, 2014*
Issued capital	300	300
Additional paid-in capital	2,971	2,971
Treasury shares	(85)	(86)
Perpetual	600	-
Reserves and retained earnings	(3,561)	(3,877)
Equity attributable to equity holders of Air France-KLM	225	(692)
Non-controlling interests	48	39
Total Equity	273	(653)
Pension provisions	1,995	2,119
Other provisions	1,513	1,404
Long-term debt	7,060	7,994
Deferred tax liabilities	11	14
Other non-current liabilities	484	536
Total non-current liabilities	11,063	12,067
Provisions	742	731
Current portion of long-term debt	2,017	1,885
Trade payables	2,395	2,444
Deferred revenue on ticket sales	2,515	2,429
Frequent flyer programs	760	759
Other current liabilities	3,567	3,330
Bank overdrafts	3	249
Total current liabilities	11,999	11,827
Total liabilities	23,062	23,894
Total equity and liabilities	23,335	23,241

* Restated, see page 17

CONSOLIDATED STATEMENT OF CASH FLOWS

In million euros	2015	2014*
Net income from continuing operations	127	(212)
Net income from discontinued operations	-	(4)
Amortization, depreciation and operating provisions	1,631	1,725
Financial provisions	59	68
Result on disposals of tangible and intangible assets	(224)	(19)
Result on disposals of subsidiaries and associates	(224)	(184)
Derivatives – non monetary result	91	73
Unrealized foreign exchange gains and losses, net	294	163
Share of (profits) losses of associates	30	39
Deferred taxes	4	158
Impairment	5	114
Other non-monetary items	32	(1,042)
Subtotal	1,825	879
Of which discontinued operations	-	(6)
(Increase) / decrease in inventories	36	(24)
(Increase) / decrease in trade receivables	(55)	98
Increase / (decrease) in trade payables	(62)	29
Change in other receivables and payables	156	10
Change in working capital from discontinued operations	-	20
Net cash flow from operating activities	1,900	1,012
Acquisition of subsidiaries, of shares in non-controlled entities	(7)	(43)
Purchase of property plants, equipments and intangible assets	(1,647)	(1,431)
Proceeds on disposal of subsidiaries, of shares in non-controlled entities	342	354
Proceeds on disposal of property, plant and equipment and intangible assets	353	269
Dividends received	5	20
Decrease / (increase) in net investments, more than 3 months	(208)	285
Net cash flow used in investing activities of discontinued operations	-	(20)
Net cash flow used in investing activities	(1,162)	(566)
Capital increase	1	-
Perpetual	600	-
Sale of minority interest without change in control	4	-
Issuance of debt	1,077	1,583
Repayment on debt	(1,549)	(2,024)
Payment of debt resulting from finance lease liabilities	(664)	(565)
New loans	(89)	(10)
Repayment on loans	140	36
Dividends paid	(24)	(3)
Net cash flow from financing activities	(504)	(983)
Effect of exchange rate on cash and cash equivalents and bank overdrafts	(43)	(77)
Change in cash and cash equivalents and bank overdrafts	191	(614)
Cash and cash equivalents and bank overdrafts at beginning of period	2,910	3,518
Cash and cash equivalents and bank overdrafts at end of period	3,101	2,910

* Restated, see page 17

KEY FINANCIAL INDICATORS

EBITDA and EBITDAR

In million euros	Q4 2015	Q4 2014*	FY 2015	FY 2014*
Income/(loss) from current operations	150	(169)	816	(129)
Amortization, depreciation and provisions	401	485	1,631	1,718
EBITDA	551	316	2,447	1,589
Aircraft operating lease costs	(265)	(227)	(1,027)	(873)
EBITDAR	816	543	3,474	2,462

* Restated, see page 17

Adjusted net income

	Q4 2015	Q4 2014*	FY 2015	FY 2014*
Net income/(loss), Group share (in €m)	276	308	118	(225)
Net income/(loss) from discontinued operations (in €m)	0	0	0	4
Deferred tax linked to legal modification pension plan Netherlands	0	206	0	206
Unrealized foreign exchange gains and losses, net (in €m)	26	(14)	294	163
Change in fair value of financial assets and liabilities (derivatives) (in €m)	(67)	(61)	91	73
Non-current income and expenses (in €m)	(215)	(810)	(299)	(880)
Depreciation of shares available for sale (in €m)	3	1	16	30
Cargo deferred tax assets (in €m)	0	63	0	89
Adjusted net income/(loss) (in €m)	23	(307)	220	(540)
Adjusted net income/(loss) per share (in €)	0.77	-1.03	0.68	-1.82

* Restated, see page 17

Return on capital employed (ROCE)

In million euros	31 Dec. 2015	31 Dec. 2014*	31 Dec. 2014*	31 Dec. 2013**
Goodwill and intangible assets	1,265	1,252	1,252	1,133
Flight equipment	8,743	8,728	8,728	9,391
Other property, plant and equipment	1,670	1,750	1,750	1,819
Investments in equity associates, excluding Alitalia	118	139	139	177
Other financial assets excluding shares available for sale, marketable securities and financial deposits	225	152	152	129
Provisions, excluding pension, cargo litigation and restructuring	(1,558)	(1,434)	(1,434)	(1,106)
WCR, excluding market value of derivatives	(5,125)	(4,928)	(4,928)	(4,905)
Capital employed on balance sheet	5,338	5,659	5,659	6,638
Average capital employed on balance sheet	5,499		6,149
Capital employed related to flight equipment under operating leases (operating leases x7)	7,189		6,111
Average capital employed (A) excluding Alitalia	12,688		12,260
Operating result, adjusted for operating leases	1,165		168
- Dividends received	(3)		(17)
- Share of profits (losses) of associates, excluding Alitalia	(30)		(39)
- Tax recognized in the adjusted net result	(43)		100
Adjusted result after tax, excluding Alitalia (B)	1,089		212
ROCE, trailing 12 months (B/A)	8.6%		1.7%
Adjusted result after tax, excl. Alitalia, excluding strike (C)	1,089		637
ROCE excluding strike, trailing 12 monhts (C/A)	8.6%		5.2%

* Restated, see page 17

** Restated for IFRIC 21, CityJet reclassified as discontinued operation

Net debt

Balance sheet at *(In million euros)*	31 December2015	31 December 2014
Current and non-current financial debt	9,077	9,879
Deposits on aircraft under finance lease	(453)	(584)
Financial assets pledged (OCEANE swap)	(393)	(196)
Currency hedge on financial debt	(40)	(21)
Accrued interest	(95)	(123)
Gross financial debt (A)	8,096	8,955
Cash and cash equivalents	3,104	3,159
Marketable securities	466	73
Cash pledges	18	399
Deposits (bonds)	204	166
Bank overdrafts	(3)	(249)
Net cash (B)	3,789	3,548
Net debt (A) – (B)	4,307	5,407

Adjusted net debt and adjusted net debt/EBITDAR ratio

	31 December 2015	31 December 2014
Net debt (in €m)	4,307	5,407
Aircraft operating leases x 7 (trailing 12 months, in €m)	7,189	6,111
Adjusted net debt (in €m)	11,496	11,518
EBITDAR (trailing 12 months, in €m)	3,474	2,462
EBITDAR excluding strike (trailing 12 months, in €m)	3,474	2,887
Adjusted net debt/EBITDAR ratio (trailing 12 months)	3.3X	4.7x
Adjusted net debt/EBITDAR ratio, excluding strike (trailing 12 months)	3.3X	4.0x

Operating free cash flow

In million euros	FY 2015	FY 2014
Net cash flow from operating activities	1,900	998
Investment in property, plant, equipment and intangible assets	(1,647)	(1,431)
Proceeds on disposal of property, plant, equipment and intangible assets	353	269
Operating free cash flow excluding discontinued operations	606	(164)
Intangible asset disposal (LHR slots)	(246)	0
Adjusted operating free cash flow excluding discontinued operations	360	(164)

Net cost per EASK

	Q4 2015	Q4 2014*	FY 2015	FY 2014*
Revenues (in €m)	6,346	6,212	26,059	24,912
Income/(loss) from current operations (in €m)	150	(169)	816	(129)
Total operating expense (in €m)	(6,196)	(6,381)	(25,243)	(25,041)
Passenger network business – other revenues (in €m)**	196	213	834	830
Cargo business – other revenues (in €m)	45	38	162	172
Third-party revenues in the maintenance business (in €m)	429	356	1,577	1,251
Transavia - other revenues (in €m)	2	2	13	10
Third-party revenues of other businesses (in €m)	115	88	417	354
Net cost (in €m)	5,409	5,684	22,240	22,424
Net cost excluding strike (in €m)		5,668		22,494
Capacity produced, reported in EASK	81,639	81,565	337,993	332,602
Capacity produced, reported in EASK excluding strike				337,352
Net cost per EASK (in € cents per EASK) excluding strike	6.62	6.95	6.58	6.67
Gross change		-4.7%		-1.3%
Currency effect on net costs (in €m)		278		1,426
Change at constant currency		-9.1%		-7.2%
Fuel price effect (in €m)		(539)		-1,721
Change on a constant currency and fuel price basis		-0.1%		0.0%
Change in pension-related expenses (in €m)		56		139
Net cost per EASK on a constant currency, fuel price and pension-related expenses basis (in € cents per EASK)	6.62	6.70	6.58	6.62
*Change on a constant currency, fuel price and pension-related expenses basis*		-1.1%		-0.6%

* Restated, see page 17

** Passenger other revenues restated for change in revenue allocation (16 million euros transferred from “other passenger” to “scheduled passenger revenues” in Q4, 45 million euros over the Full Year)

INDIVIDUAL AIRLINE RESULTS

Air France Group

	FY 2015	FY 2014*	Change	Changelike-for-like
Revenue (€m)	16,477	15,582	+5.7%	-2.8%
EBITDA (€m)	1,525	845	+680	+341
Operating result (€m)	462	-314	+776	+470
Operating margin	2.8%	-2.0%	+4.8 pt
Operating cash flow before WCR and restructuring cash out (€m)	1,188	665	+523
Operating cash flow (before WCR and restructuring) margin	7.2%	4.3%	+2.9 pt

* Restated, see page 17

KLM Group

	FY 2015	FY 2014*	Change	Changelike-for-like
Revenue (€m)	9,905	9,643	+2.7%	-3.7%
EBITDA** (€m)	911	734	+177	+221
Operating result** (€m)	384	175	+209	+255
Operating margin	3.9%	1.8%	+2.1 pt
Operating cash flow before WCR and restructuring cash out (€m)	746	457	+289
Operating cash flow (before WCR and restructuring) margin	7.5%	4.7%	+2.8 pt

* Restated, see page 17

** KLM EBITDA and operating result are affected by a non-cash increase of 139 million euros in pension-related expenses

NB: Sum of individual airline results does not add up to Air France-KLM total due to intercompany eliminations at Group level.

Restatement of income statement for capitalized costs

To improve the readability of its financial statements, the Group has decided, as from January 1, 2015, to isolate the items relating to capitalized production in a single line of the income statement (within “other income and expenses”) while they had previously been allocated by type of expenditure. The consolidated financial statements as of December 31, 2014 have been restated to facilitate comparison. The impacts of this reclassification on the 2014 income statement are the following:

In million euros	Q1 2014	Q2 2014	Q3 2014	Q4 2014	FY 2014
Aircraft maintenance costs	-84	-90	-96	-103	-373
Other external expenses	-16	-18	-17	-21	-72
Salaries and related costs	-35	-30	-31	-32	-128
Other income and expenses	135	138	145	155	573
Income from current operations	0	0	0	0	0

Modification in the conversion method of provisions in foreign currencies

The Group records provisions for future expenses in foreign currency, primarily for the restitution of aircraft under operating leases. A significant portion of these provisions is made to cover the purchase of spare parts to be purchased in US dollars whatever the functional currency of the entity. To facilitate analysis of the impacts linked to the dollar variation, the Group has decided, with effect from January 1, 2015, to isolate the foreign currency effect on provisions in “Other financial income and expenses” while it had hitherto been recorded in “Amortization, depreciation and provisions”.

Moreover, the closing rate will be used to convert provisions at the closing date. Previously, the Group had 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 reasons of comparison. The impacts of this restatement on the income statement are the following:

In million euros	Q4 2014	FY 2014
Other financial income and expenses	-12	-41
Income before tax	-12	-41
Income taxes	+4	+14
Net income for the period	-8	-27

The impacts of this restatement on the balance sheet are the following:

In million euros	1 January 2014	31 December 2014
Deferred tax assets	-3	+11
Total assets	-3	+11
Reserves and retained earnings	+6	-21
Other provisions	-9	+32
Total equity and liabilities	-3	+11

Change in the income statement presentation

The presentation of the income statement has been reviewed and the Group has decided, with effect from January 1, 2015, to integrate the cost of hired staff in “Salaries and related costs”, while it had been recorded in “External expenses”.

In million euros	FY 2014
External expenses	192
Salaries and related costs	-192
Net income for the period	0

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

Air France KLM - December 2015 Traffic Results

Mon, 11 Jan 2016 07:30:00 +0100

Traffic highlights

The negative impact of the Paris attacks on December revenues is estimated to be around 70 million euros, with significant easing during the last two weeks. Booking trends in December were in line with a progressive recovery.

Passenger network activity (Air France, KLM, HOP!)	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Long-haul	+ 1.7%	+ 1.3%	84.1%	- 0.3
North America	+ 6.7%	+ 4.0%	86.0%	- 2.2
Latin America	+ 3.3%	+ 2.9%	85.1%	- 0.4
Asia	- 3.1%	- 4.2%	81.9%	- 1.0
Africa / Middle East	+ 2.1%	+ 5.7%	83.0%	+ 2.8
Caribbean / Indian Ocean	+ 0.5%	+ 0.5%	85.2%	+ 0.0
Short and Medium-haul	- 2.5%	- 2.0%	77.4%	+ 0.4
Total network airlines	+ 0.9%	+ 0.7%	82.8%	- 0.1

6.2 million passengers, down 1.1%
Network-wide load factor stable in spite of Paris terrorist attacks,
Load factor for both North America and Asia networks, notably Japan routes, impacted by the Paris terrorist attacks,
Excluding the estimated impact of the Paris attacks, unit revenue per available seat kilometer (RASK) ex-currency down compared to December 2014.

Transavia activity	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 8.8%	+ 7.6%	83.2%	- 1.0

0.6 million passengers, up 13.1%

Total group passenger activity (Air France, KLM, HOP!, Transavia)	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 1.3%	+ 1.1%	82.9%	- 0.2

Total group passengers stable at 6.7 million

Cargo activity

Capacity(ATK, %ch.)

Traffic(RTK, %ch.)

Load Factor

(%)

Change (pts)

Total

- 6.6%

- 7.8%

62.5%

- 0.8

Ongoing restructuring of cargo: full-freighter capacity down 29% compared to December 2014
Unit revenue per available ton kilometer (RATK) ex-currency clearly down compared to December 2014

Agenda

8 February 2016: January 2016 traffic
18 February 2016: Full year 2015 results
8 March 2016: February 2016 traffic

AIRFRANCE KLM Financial Year 2015: Third Quarter results.

Thu, 29 Oct 2015 07:15:00 +0100

First nine months of 2015

Revenues of 19.7 billion euros, up 3.1% excluding strike impact, down 3.1% like-for-like
EBITDAR of 2,658 million euros, an improvement of 388 million euros like-for-like
Strong operating free cash flow (2) generation: 533 million euros
Further net debt reduction: net debt (2) of 4.33 billion euros, down 1,077 million euros compared to 31 December 2014
Adjusted net debt / EBITDAR ratio (3) of 3.4x, an improvement of 0.6 compared to 31 December 2014

Full year 2015 outlook

Unit cost target: reduction in the 0.5% to 0.7% range (4) (previously: in the 1.0% to 1.3% range)
End 2015 net debt target unchanged: around 4.4 billion euros, down 1 billion euros compared to end of 2014

The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 28 October 2015 to examine the accounts for the Third Quarter of the Financial Year 2015.

1) Like-for-like: excluding currency and September 2014 pilot strike. 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

AIRFRANCE KLM August 2015 Traffic Results.

Wed, 09 Sep 2015 07:30:00 +0200

Traffic highlights

Passenger network activity (Air France, KLM, HOP!)	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Long-haul	+ 2.2%	+ 2.9%	90.9%	+ 0.7
North America	+ 1.7%	+ 2.7%	90.6%	+ 0.9
Latin America	+ 7.1%	+ 6.8%	88.7%	- 0.3
Asia	+ 1.1%	+ 2.5%	93.4%	+ 1.2
Africa / Middle East	+ 2.5%	+ 3.0%	89.9%	+ 0.5
Caribbean / Indian Ocean	- 0.2%	- 0.0%	90.1%	+ 0.2
Short and Medium-haul	- 1.8%	- 0.7%	84.9%	+ 0.9
Total network airlines	+ 1.4%	+ 2.2%	89.8%	+ 0.8

7.3 million passengers, up 1.0%
Long-haul traffic up 2.9% resulting in high load factor (90.9%) on long-haul network
Unit revenue per available seat kilometer (RASK) ex-currency down compared to August 2014

Transavia activity	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 1.3%	+ 1.1%	92.7%	- 0.1

.4 million passengers, up 3.6%
Ongoing accelerated development of Transavia in France (passenger volumes up 21%) partly offset by seasonal charter capacity adjustments in the Netherlands

Total group passenger activity	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 1.4%	+ 2.1%	90.1%	+ 0.7

8.7 million passengers, up 1.4%

Cargo activity

Capacity(ATK, %ch.)

Traffic(RTK, %ch.)

Load Factor

(%)

Change (pts)

Total

- 7.6%

- 8.9%

57.9%

- 0.8

Ongoing restructuring of cargo: full-freighter capacity down 31% compared to August 2014
Unit revenue per available ton kilometer (RATK) ex-currency clearly down compared to August 2014

Agenda

8 October 2015: September 2015 traffic
29 October 2015: Q3 2015 results
9 November 2015: October 2015 traffic

Statistics

		August		Year to date
Total Passenger network*	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	7,349	7,276	1.0%	52,786	52,633	0.3%
Revenue pax-kilometers (m RPK)	23,119	22,612	2.2%	158,359	156,976	0.9%
Available seat-kilometers (m ASK)	25,748	25,399	1.4%	185,496	184,482	0.5%
Load factor (%)	89.8%	89.0%	0.8	85.4%	85.1%	0.3

Long-haul
Passengers carried (‘000s)	2,539	2,467	2.9%	17,190	16,936	1.5%
Revenue pax-kilometers (m RPK)	18,911	18,375	2.9%	128,857	127,169	1.3%
Available seat-kilometers (m ASK)	20,794	20,355	2.2%	148,600	146,728	1.3%
Load factor (%)	90.9%	90.3%	0.7	86.7%	86.7%	0.0

North America
Passengers carried (‘000s)	791	777	1.8%	5,039	4,950	1.8%
Revenue pax-kilometers (m RPK)	5,606	5,456	2.7%	35,774	34,973	2.3%
Available seat-kilometers (m ASK)	6,187	6,086	1.7%	40,440	39,717	1.8%
Load factor (%)	90.6%	89.6%	0.9	88.5%	88.1%	0.4

Latin America
Passengers carried (‘000s)	278	259	7.1%	2,016	1,950	3.4%
Revenue pax-kilometers (m RPK)	2,668	2,498	6.8%	19,391	18,772	3.3%
Available seat-kilometers (m ASK)	3,007	2,807	7.1%	22,345	21,437	4.2%
Load factor (%)	88.7%	89.0%	(0.3)	86.8%	87.6%	(0.8)

Asia / Pacific
Passengers carried (‘000s)	621	603	3.1%	4,232	4,135	2.3%
Revenue pax-kilometers (m RPK)	5,480	5,346	2.5%	36,960	36,582	1.0%
Available seat-kilometers (m ASK)	5,867	5,801	1.1%	42,336	41,924	1.0%
Load factor (%)	93.4%	92.2%	1.2	87.3%	87.3%	0.0

Africa / Middle East
Passengers carried (‘000s)	520	499	4.2%	3,532	3,543	(0.3%)
Revenue pax-kilometers (m RPK)	2,834	2,751	3.0%	19,550	19,799	(1.3%)
Available seat-kilometers (m ASK)	3,152	3,075	2.5%	24,139	24,179	(0.2%)
Load factor (%)	89.9%	89.4%	0.5	81.0%	81.9%	(0.9)

Caribbean / Indian, Ocean
Passengers carried (‘000s)	328	328	(0.1%)	2,371	2,358	0.5%
Revenue pax-kilometers (m RPK)	2,324	2,324	(0.0%)	17,182	17,044	0.8%
Available seat-kilometers (m ASK)	2,580	2,585	(0.2%)	19,340	19,471	(0.7%)
Load factor (%)	90.1%	89.9%	0.2	88.8%	87.5%	1.3

Short and Medium-haul
Passengers carried (‘000s)	4,811	4,809	0.0%	35,597	35,697	(0.3%)
Revenue pax-kilometers (m RPK)	4,208	4,237	(0.7%)	29,501	29,807	(1.0%)
Available seat-kilometers (m ASK)	4,954	5,044	(1.8%)	36,895	37,755	(2.3%)
Load factor (%)	84.9%	84.0%	0.9	80.0%	79.0%	1.0

Transavia activity

		August		Year to date
Transavia	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	1,387	1,339	3.6%	7,457	6,866	8.6%
Revenue pax-kilometers (m RPK)	2,638	2,608	1.1%	14,015	13,277	5.6%
Available seat-kilometers (m ASK)	2,846	2,810	1.3%	15,496	14,748	5.1%
Load factor (%)	92.7%	92.8%	(0.1)	90.4%	90.0%	0.4

Total group passenger activity**

		August		Year to date
Total group**	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	8,737	8,615	1.4%	60,243	59,499	1.3%
Revenue pax-kilometers (m RPK)	25,757	25,220	2.1%	172,374	170,253	1.2%
Available seat-kilometers (m ASK)	28,594	28,209	1.4%	200,992	199,230	0.9%
Load factor (%)	90.1%	89.4%	0.7	85.8%	85.5%	0.3

Cargo activity

		August		Year to date
Total group	2015	2014	Variation	2015	2014	Variation
Revenue tonne-km (m RTK)	759	834	(8.9%)	5,965	6,607	(9.7%)
Available tonne-km (m ATK)	1,312	1,420	(7.6%)	10,031	10,545	(4.9%)
Load factor (%)	57.9%	58.7%	(0.8)	59.5%	62.7%	(3.2)

Traffic July 2015

Mon, 10 Aug 2015 07:30:00 +0200

Traffic highlights

Passenger network activity (Air France, KLM, HOP!)	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Long-haul	+ 2.0%	+ 3.2%	89.8%	+ 1.1
North America	+ 1.1%	+ 3.5%	90.5%	+ 2.1
Latin America	+ 7.0%	+ 4.5%	88.9%	- 2.2
Asia	+ 1.0%	+ 3.2%	92.0%	+ 2.0
Africa / Middle East	+ 3.4%	+ 3.6%	85.3%	+ 0.1
Caribbean / Indian Ocean	- 1.1%	+ 0.9%	90.0%	+ 1.8
Short and Medium-haul	- 1.4%	+ 0.3%	85.6%	+ 1.5
Total passenger network	+ 1.3%	+ 2.7%	89.0%	+ 1.2

7.6 million passengers, up 1.3%

Increase in traffic in all regions of the network

Unit revenue per available seat kilometer (RASK) ex-currency down compared to July 2014

Transavia activity	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 4.4%	+ 6.2%	91.6%	+ 1.5

1.3 million passengers, up 9.4%

Ongoing accelerated development of Transavia in France: capacity up 19% and load factor up 4.4 points

Total group passenger activity	Capacity(ASK, %ch.)	Traffic(RPK, %ch.)	Load Factor (%)	Change (pts)
Total	+ 1.6%	+ 3.0%	89.3%	+ 1.2

8.9 million passengers, up 2.4%

Cargo activity

Capacity(ATK, %ch.)

Traffic(RTK, %ch.)

Load Factor

(%)

Change (pts)

Total

- 8.0%

- 10.4%

57.8%

- 1.6

Ongoing restructuring of cargo: full-freighter capacity down 31% compared to July 2014

Unit revenue per available ton kilometer (RATK) ex-currency clearly down compared to July 2014

Agenda

9 September 2015: August 2015 traffic

8 October 2015: September 2015 traffic

29 October 2015: Q3 2015 results

9 November 2015: October 2015 traffic

Investors		Press
Bertrand Delcaire	Dirk Voermans	+33 1 41 56 56 00
+33 1 49 89 52 59	+33 1 49 89 52 60
bedelcaire@airfranceklm.com Website: www.airfranceklm-finance.com	divoermans@airfranceklm.com
www.airfranceklm.com

STATISTICS

Passenger network activity*

		July		Year to date
Total Passenger network*	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	7,584	7,489	1.3%	45,437	45,358	0.2%
Revenue pax-kilometers (m RPK)	22,870	22,276	2.7%	135,240	134,364	0.7%
Available seat-kilometers (m ASK)	25,694	25,372	1.3%	159,748	159,083	0.4%
Load factor (%)	89.0%	87.8%	1.2	84.7%	84.5%	0.2

Long-haul
Passengers carried (‘000s)	2,483	2,399	3.5%	14,651	14,469	1.3%
Revenue pax-kilometers (m RPK)	18,562	17,979	3.2%	109,946	108,794	1.1%
Available seat-kilometers (m ASK)	20,661	20,266	2.0%	127,806	126,373	1.1%
Load factor (%)	89.8%	88.7%	1.1	86.0%	86.1%	(0.1)

North America
Passengers carried (‘000s)	784	763	2.7%	4,248	4,173	1.8%
Revenue pax-kilometers (m RPK)	5,567	5,380	3.5%	30,168	29,516	2.2%
Available seat-kilometers (m ASK)	6,149	6,083	1.1%	34,252	33,631	1.8%
Load factor (%)	90.5%	88.4%	2.1	88.1%	87.8%	0.3

Latin America
Passengers carried (‘000s)	280	267	5.1%	1,739	1,691	2.8%
Revenue pax-kilometers (m RPK)	2,676	2,561	4.5%	16,723	16,274	2.8%
Available seat-kilometers (m ASK)	3,011	2,813	7.0%	19,338	18,629	3.8%
Load factor (%)	88.9%	91.0%	(2.2)	86.5%	87.4%	(0.9)

Asia / Pacific
Passengers carried (‘000s)	610	587	3.9%	3,611	3,532	2.2%
Revenue pax-kilometers (m RPK)	5,366	5,199	3.2%	31,480	31,236	0.8%
Available seat-kilometers (m ASK)	5,833	5,778	1.0%	36,469	36,123	1.0%
Load factor (%)	92.0%	90.0%	2.0	86.3%	86.5%	(0.2)

Africa / Middle East
Passengers carried (‘000s)	489	464	5.2%	3,011	3,044	(1.1%)
Revenue pax-kilometers (m RPK)	2,671	2,579	3.6%	16,716	17,048	(1.9%)
Available seat-kilometers (m ASK)	3,132	3,028	3.4%	20,988	21,104	(0.5%)
Load factor (%)	85.3%	85.2%	0.1	79.6%	80.8%	(1.1)

Caribbean / Indian Ocean
Passengers carried (‘000s)	319	317	0.6%	2,043	2,030	0.6%
Revenue pax-kilometers (m RPK)	2,282	2,261	0.9%	14,858	14,720	0.9%
Available seat-kilometers (m ASK)	2,536	2,563	(1.1%)	16,760	16,886	(0.7%)
Load factor (%)	90.0%	88.2%	1.8	88.7%	87.2%	1.5

Short and Medium-haul
Passengers carried (‘000s)	5,101	5,090	0.2%	30,786	30,888	(0.3%)
Revenue pax-kilometers (m RPK)	4,308	4,297	0.3%	25,294	25,570	(1.1%)
Available seat-kilometers (m ASK)	5,033	5,107	(1.4%)	31,942	32,711	(2.4%)
Load factor (%)	85.6%	84.1%	1.5	79.2%	78.2%	1.0

* Air France, KLM, and HOP!

Transavia activity

		July		Year to date
Transavia	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	1,321	1,207	9.4%	6,069	5,527	9.8%
Revenue pax-kilometers (m RPK)	2,541	2,392	6.2%	11,378	10,669	6.6%
Available seat-kilometers (m ASK)	2,773	2,655	4.4%	12,650	11,937	6.0%
Load factor (%)	91.6%	90.1%	1.5	89.9%	89.4%	0.6

Total group passenger activity**

		July		Year to date
Total group**	2015	2014	Variation	2015	2014	Variation
Passengers carried (‘000s)	8,905	8,696	2.4%	51,506	50,884	1.2%
Revenue pax-kilometers (m RPK)	25,411	24,668	3.0%	146,617	145,033	1.1%
Available seat-kilometers (m ASK)	28,467	28,027	1.6%	172,398	171,020	0.8%
Load factor (%)	89.3%	88.0%	1.2	85.0%	84.8%	0.2

** Air France, KLM, HOP! and Transavia

Cargo activity

		July		Year to date
Total group	2015	2014	Variation	2015	2014	Variation
Revenue tonne-km (m RTK)	752	839	(10.4%)	5,205	5,774	(9.8%)
Available tonne-km (m ATK)	1,301	1,414	(8.0%)	8,719	9,124	(4.4%)
Load factor (%)	57.8%	59.3%	(1.6)	59.7%	63.3%	(3.6)

AirFrance-KLM Financial Year 2015: First Half results.

Fri, 24 Jul 2015 07:15:00 +0200

SECOND QUARTER

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 cost² down 0.5% like-for-like

FIRST HALF

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 ratio[3] 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% 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

ACCELERATION OF PERFORM 2020

Launch of immediate cost-saving measures
Acceleration of all cost reduction initiatives
Adjustment of Winter 2015-16 capacity

[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

----------------------------------------------------------------------------------------------------------------------------------------------------

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.

Key Data

	Second Quarter			First Half
	2015	2014	Change	2015	2014	Change
Passengers (thousands)	23,580	23,390	+0.8%	42,601	42,188	+1.0%
Capacity (EASK m)	85,948	85,807	+0.2%	163,180	162,971	+0.1%
Revenues (€m)	6,642	6,451	+3.0%	12,298	12,005	+2.4%
Change like-for-like (%)			-4.5%			-3.6%
EBITDAR (€m)	824	854	-30	1,053	1,021	+32
EBITDA (€m)	569	641	-72	548	591	-43
EBITDA margin (%)	8.6	9.9	-1.3 pt	4.5	4.9	-0.4 pt
EBITDA change like-for-like (€m)			-17			+92
Operating result (€m)	185	238	-53	-232	-207	-25
Operating margin (%)	2.8%	3.7%	-0.9 pt	-1.9%	-1.7%	-0.2 pt
Operating result changelike-for-like (€m)			+2			+110
Net result, group share (€m)	-79	-11	-68	-638	-619	-19
Restated net result, group share² (€m)	77	146	-69	-427	-339	-88
Earnings per share (€)	(0.27)	(0.04)	-0.23	(2.16)	(2.09)	-0.07
Diluted earnings per share (€)	(0.27)	(0.04)	-0.23	(2.16)	(2.09)	-0.07
Adjusted earnings per share (€)	0.24	0.49	-0.25	(1.46)	(1.15)	-0.31
Diluted adjusted earnings per share (€)	0.21	0.38	-0.17	(1.46)	(1.15)	-0.31
Operating free cash flow (€m)	311	175	+136	274	95	+179
Net debt at end of period (€m)				4,550	5,407	-857

The consolidated financial statements of the Group have been revised as of 1^st 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.

Watch the broadcast of the press conference at 10:30 am CET

AFKL May 2015 Traffic Results

Mon, 08 Jun 2015 09:10:04 +0200

For the entire Press Release follow the link

AIRFRANCE KLM Financial Year 2015: First Quarter results.

Thu, 30 Apr 2015 07:15:00 +0200

FIRST QUARTER RESULTS AFFECTED BY CURRENCY IMPACT

Revenues of 5.7 billion euros, up 1.8%
EBITDAR[1] of 229 million euros, an improvement of 62 million euros
EBITDA1 of -21 million euros, an improvement of 29 million euros
Operating result of -417 million euros, an improvement of 109 million euroslike-for-like[2]
Net negative currency impact of 81 million euros on operating result
Net debt¹ of 5.28 billion euros, down 127 million euros compared to 31 December 2014, and down to 4.68 billion euros including April 2015 hybrid bond issuance
Adjusted net debt / EBITDAR ratio[3] of 3.7x, an improvement of 0.5 compared to 31 March 2014

FULL YEAR 2015 OUTLOOK: OBJECTIVES MAINTAINED

Unit cost¹ reduction target of 1 to 1.3%
Significant reduction of net debt, from 5.4 billion euros at end 2014 down to around 4.4 billion euros at end 2015, in part as a result of the April 2015 hybrid bond issuance

[1] See definition in appendix

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

[3] Trailing 12 months, adjusted for September 2014 pilot strike impact and April 2015 hybrid bond; see definition in appendix

KEY DATA

The consolidated financial statements of the Group have been revised as of 1^st January 2015 in order to improve their legibility. 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 appendix.

First Quarter 2015 total revenues stood at 5.7 billion euros versus 5.6 billion euros in First Quarter 2014, up 1.8%, but down 2.4% like-for-like.

Currencies had a positive 239 million euro impact on revenues, primarily driven by the strengthening of the US dollar against the euro. In spite of higher profits on currency hedging, the negative impact on costs reached 320 million euros. It was larger considering the bigger share of costs than revenues in US dollars, and considering the fact that a sizeable portion of First Quarter 2015 revenues were booked in 2014 at a time when the dollar was weaker. In the First Quarter 2015, the net impact of currencies thus amounted to a negative 81 million euros.

Total operating costs were 1.2% higher year-on-year and down 3.9% on a like-for-like basis. Ex-fuel, they increased by 3.3% and by 1.5% on a like-for-like basis. Unit cost per EASK was stable, on a constant currency, fuel price and pension-related expense basis, against stable capacity measured in EASK (+0.1%).

The fuel bill amounted to 1,480 million euros, down 4.7% and like-for-like down 17.6%, on the back of a 20.3% reduction in jet fuel price after hedging and of a 15.6% negative currency impact. Based on the forward curve at 17 April, the Full Year 2015 fuel bill is expected to reach 6.6 billion euros4[1]. Based on the same forward curve, the Full Year 2016 fuel bill could amount to 6.1 billion euros4.

Total employee costs including temporary staff were up 2.1% to 1,920 million euros. They included a non-cash increase of 31 million euros in pension-related expenses at KLM due to changes in actuarial assumptions (lower discount rate). On a constant scope and pension-related expense basis, they were flat (+0.3%). In addition, the Group recorded under “non-current income and expenses” a 56 million euro provision for the Voluntary Departure Plan targeting 800 positions that was announced in February.

EBITDAR amounted to 229 million euros, an improvement of 62 million.

4 2015 average Brent price of USD63, average jet fuel price of USD608 per metric ton, average exchange rate of 1.10 USD per euro. 2016 average Brent price of USD69, average jet fuel price of USD663 per metric ton, average exchange rate of 1.10 USD per euro.

EBITDA amounted to a negative 21 million euros, an increase of 29 million euros. On a like-for-like basis, EBITDA improved by 91 million euros. The Passenger network had the largest contribution to the improvement of EBITDA, up 58 million euros, whereas cargo EBITDA decreased by 30 million euros. At 85 million euros, maintenance achieved a good performance on EBITDA level, up 9 million euros.

The operating result stood at -417 million euros versus -445 million euros in 2014, a 28 million euro improvement. Like-for-like, the operating result increased by 109 million euros.

The net result, group share stood at -559 million euros against -608 million euros a year ago. It included notably the non-current result related to the capital gain on the sale of Amadeus shares (+218 million euros), partly offset by the change in value of the fuel hedging portfolio (-26 million euros) and the unrealized foreign exchange loss (-143 million euros). On an adjusted basis, the net result, group share stood at -504 million euros against -485 million euros in First Quarter 2014, a 19 million euro decrease.

At 31 March 2015, the trailing 12 months strike-adjusted return on capital employed¹ (ROCE) was 5.6%, up 1.6 point compared to 31 March 2014.

PASSENGER NETWORK BUSINESS

First Quarter 2015 total passenger network revenues amounted to 4,421 million euros, up 1.3% and down 2.0% like-for-like. The operating result of the passenger network business stood at -322 million euros, versus -378 million euros over the First Quarter 2014. Like-for-like, the operating result improved by 132 million euros.

The Group maintained its strict capacity discipline, keeping total passenger network capacity stable (+0.1%). Unit revenue per Available Seat Kilometer (RASK) remained volatile, down by 2.3% on a like-for-like basis in the First Quarter. On the long-haul network, unit revenue was affected by the expected capacity-demand balances reflected in the unit revenue performance of the different parts of the network: good performance on North America and the Caribbean & Indian Ocean, weaker performance on the Latin American network on the back of a weak economic environment in several key markets, whereas the capacity-demand balances put pressures on both Eastern-Africa and Asia networks.

As planned, short and medium-haul point-to-point capacity (excluding the Paris and Amsterdam hubs) was further reduced by 11.8%, leading to a significant improvement in unit revenue of +9.6% like-for-like, whereas for hub-related short and medium-haul traffic, unit revenues were down -1.4% like-for-like.

CARGO BUSINESS

The Group continued to restructure its cargo activity to address the weak global trade and structural air cargo industry overcapacity. During First Quarter 2015, full-freighter capacity was reduced by 9.6%, while belly capacity increased by 1.2%, leading to a decrease in total capacity of 1.9%. Revenue per Available Ton Kilometer (ATK) was nevertheless down by 11.3% like-for-like, reflecting the structural industry overcapacity, especially on flows from Asia to Europe.

The operating result stood at -63 million euros, a decrease of 15 million euros like-for-like.

Within the framework of Perform 2020, 3 Boeing 747 were retired in the Winter 2014-15 season, while another 5 MD11s will be retired by the end of the Winter 2015-16 season. The Group plans to operate only 5 full-freighters by the end of 2016. This reduction should enable the full-freighter business to return to operating breakeven in 2017 (versus a strike-adjusted loss of around 95 million euros in 2014).

MAINTENANCE BUSINESS

First Quarter 2015 third party maintenance revenues amounted to 380 million euros, up 31.0% and by 13.8% like-for-like. Revenues benefited not only from the strong dollar, but also from the contracts gained in previous years and from weak comparables in Q1 2014. In the quarter, the Group performed its first GEnx engine overhaul.

The operating result stood at 35 million euros, up 13 million euros year-on-year, and down 2 million euros like-for-like.

Over the period, the Group recorded a further 5% increase in its order book to a record high 5.9 billion euros, including several new B787 component support contracts. The Group further expanded its service portfolio with an investment in a US engine parts trading business.

TRANSAVIA

In the First Quarter 2015, Transavia capacity was up by 5.1%, reflecting the accelerated development in France (capacity up by 48%) partly offset by seasonal capacity adjustments in the Netherlands (capacity down 7.5%). Traffic rose by 7.1%. The load factor remained high (87.9%, up 1.7 point) despite the increase in capacity. Unit revenue per ASK increased by +0.7% despite the increase in capacity, resulting in total revenues of 146 million euros, up 5.0%.

Unit costs were up 4.3% on the back of the stronger US dollar, a shorter stage length, ongoing ramp-up investments in France, and the seasonal capacity adjustments performed in the Netherlands.

The operating result was thus down by 11 million euros to reach -69 million euros.

The development of Transavia will further accelerate in 2015: on top of a 30% capacity increase to serve 44 destinations from France, Transavia is launching a new brand identity, a new web site, implementing a tighter integration with Flying Blue, and has recently ordered 20 Boeing 737s.

OTHER BUSINESS: CATERING

In the First Quarter 2015, third party catering revenues amounted to 75 million euros, up 2.7%.The operating result stood at -1 million euros, up 3 million euros.

FINANCIAL SITUATION

In the First Quarter 2015, the increase of 29 million euros in EBITDA translated into a 27 million euro improvement in cash flow before change in WCR and cash out related to Voluntary Departure Plans. The Group disbursed 30 million euros for Voluntary Departure Plans. The change in Working Capital Requirement contributed 477 million euros to operating cash flow. Net investments before sale & lease-back transactions stood at 350 million euros. As a result, operating free cash flow improved by 43 million euros.

The operating free cash flow does not include free cash flow from financial investments, including the cash-in of 327 million euros from the sale of Amadeus shares in January.

Net debt amounted to 5.28 billion euros at 31 March 2015, versus 5.41 billion euros at 31 December 2014. Currencies had a significant 175 million euro negative impact on net debt. After issuance of an hybrid bond in April, net debt would stand at 4.68 billion euros at the end of First Quarter 2015.

Excluding the impact of the pilot strike on EBITDAR and including the hybrid bond issued in April, the trailing 12 months adjusted net debt / EBITDAR ratio stood at 3.7x at 31 March 2015, down 0.3 points compared to 31 December 2014, and 0.5 points compared to 31 March 2014. In parallel, a 661 million euro convertible bond was reimbursed on 1^st April, reducing the diluted share count by more than 70 million shares to 370 million shares.

Despite strong returns on pension plan assets and the positive impact of the changes in Dutch fiscal rules on pensions, the 70 basis point fall in discount rates during First Quarter 2015 led to another significant increase in the actuarial valuation of retirement obligations. The balance sheet pension situation thus moved from a net liability of 710 million euros at 31 December 2014 to a net liability of 1,051 million euros at 31 March 2015.

At 31 March 2015, equity, group share, amounted to -1,515 million euros, down 844 million euros over the quarter due to the strong seasonality of results (net result of -559 million euros) and an increase of 257 million euros in after tax net pension liability. The change in fair value of the fuel hedging portfolio had a limited impact over the quarter. At 31 March 2015, the fair value of the fuel hedging portfolio remained however strongly negative, at around -1.3 billion euros. This level of equity does not take into account the 600 million euro hybrid bond that was issued in April.

The Group continues to enjoy a good level of liquidity, with net cash² of 3.5 billion euros at 31 March 2015, and undrawn credit lines of 1.77 billion euros. At the end of April, the Group renewed some of its credit lines for an amount of 1,100 million euros with a wide pool of international banks. In addition, in January 2015, the Group received net proceeds of 327 million euros on the sale of Amadeus shares, and it issued a 600 million euros hybrid bond in April.

OUTLOOK

All the operational initiatives planned within the framework of the new strategic plan Perform 2020 are being deployed.

In parallel, negotiations with unions on labor productivity are ongoing.

As demonstrated in the First Quarter, almost all of the expected savings on the fuel bill could be offset by unit revenue pressure and negative currency impacts.

For Full Year 2015, the Group maintains its key targets:

unit cost reduction of 1 to 1.3%
net debt around 4.4 billion euros at the end of 2015

Air France KLM Summer Schedule 2015

Tue, 10 Mar 2015 17:46:53 +0100

Long-haul: Air France-KLM is increasing services to Canada and is launching two new routes: Vancouver operated by Air France from 25 March 2015 and Edmonton served by KLM from 5 May 2015. The Group is also improving its position in South America thanks to the launch of a new KLM route to Bogota and Cali (Colombia) from 31 March 2015.

Medium-haul: Air France-KLM is developing its European network on departure from the Amsterdam-Schiphol hub by adding three new destinations operated by KLM Cityhopper as from 18 May 2015: Belfast (Northern Ireland), Krakow (Poland) and Montpellier (France). At Paris-Charles de Gaulle, Air France is increasing capacity to Bordeaux (France), Naples (Italy), Billund (Denmark), Bucharest (Romania) and Budapest (Hungary).

On departure from Paris-Orly and the regional airports, the Group continues to reorganize its short-haul activity, currently regrouped within HOP! Air France's operations.

Low-cost operations: Transavia is continuing its rapid development in France (+30%) and is consolidating its activity in the Netherlands. The company is launching 14 new routes, while strengthening its offer of flights to the most popular summer destinations.

New products and services: Air France-KLM is continuing its move upmarket. At the end of the summer season, 20 Air France Boeing 777 will be equipped with the latest BEST cabins. After renovating its World Business Class cabin on all its Boeing 747-400, KLM is gradually equipping its fleet of Boeing 777 with its new World Business Class and Economy Class. From April 2015, Air France is also introducing a new leather seat on 24 Airbus A319 on departure from Paris-Charles de Gaulle. It will then equip 25 Airbus A320 in the first half of 2016.

Partnerships: As well as strengthening its joint ventures (Delta, Alitalia, China Southern, China Eastern, Kenya Airways, Air Mauritius) and its strategic agreements (GOL), Air France-KLM is continuing the development of its partnerships all over the world. To offer more and more flight frequencies and destinations, the Group is extending its cooperation with the Canadian airline WestJet. The Group also has strong ambitions In Asia, illustrated by the signing of a cooperation agreement between KLM and Xiamen Airlines and the code-share agreement with Garuda on flights between Amsterdam and Jakarta.

LONG-HAUL: +1.8%

Air France-KLM’s long-haul activity is increasing by +1.8%.

North America

For the 2015 summer season, Air France-KLM is increasing services to Canada. As of 25 March 2015, Air France is launching a new route to Vancouver, with up to 5 weekly flights from Paris-Charles de Gaulle. KLM is also introducing a new service between Amsterdam-Schiphol and Edmonton on 5 May 2015, with 3 weekly flights, then 4 weekly flights as of 22 June 2015.

Air France-KLM is developing its partnership with the Canadian airline WestJet, by offering new connecting opportunities in North America in addition to the new Paris-Vancouver and Amsterdam-Edmonton routes. Moreover, the Group is maintaining its close cooperation with Delta Air Lines as part of the trans-Atlantic joint venture.

Between May and September 2015, the seasonal service to Minneapolis-Saint Paul (USA) will be resumed from Paris-Charles de Gaulle. To meet market demand, Air France will be operating a second daily flight to San Francisco (USA) during the peak summer season (from mid-June to the end of August 2015). KLM is also further extending its second flight to Los Angeles to the full summer period, offering 12 weekly frequencies.

Central and South America and the Caribbean

As from 31 March 2015, KLM is launching a new service to Bogota and Cali (Colombia) from Amsterdam-Schiphol with 3 weekly frequencies. As a continuation of the winter season, Air France is increasing capacity to Panama City, with 5 weekly flights. Services to Brasilia (Brazil), launched in summer 2014, are maintained with 3 weekly frequencies.

In addition, Air France-KLM is maintaining its close cooperation with the Brazilian airline GOL, in order to offer numerous connecting opportunities to its customers on the Brazilian domestic network.In the Caribbean, as a continuation of the winter schedule, Air France-KLM is adjusting capacity during the peak summer season. The Company will offer up to 13 weekly flights to Pointe à Pitre and up to 11 weekly flights to Fort de France. Moreover, during the peak summer period, KLM will be operating a second non-stop flight twice a week to Curacao, in addition to the daily flight from Amsterdam-Schiphol.

Asia

Air France is continuing its daily service to Hong Kong (China) by Airbus A380 (5 weekly flights) and by Boeing 777-300 (2 weekly flights). The Company is also increasing capacity to Seoul (South Korea), serving this destination by Boeing 777-300 with 383 seats as well as to Singapore, with three additional flights operated during the peak summer period. Air France is continuing to serve Tokyo-Haneda Airport (Japan) up to 13 times a week in addition to the daily flight to Tokyo-Narita which provides connections to Noumea (New Caledonia).

The Group is also continuing to strengthen its cooperation with its Asian partners to offer an even wider choice of flights and destinations. In particular, KLM and Garuda Indonesia have set up a code-share agreement on both airlines’ flights between Amsterdam and Jakarta (Indonesia). KLM has also signed a cooperation agreement with the Chinese airline Xiamen Airlines, illustrating their commitment to strengthening accessibility between the Netherlands and China.

Africa and the Indian Ocean

As a continuation of the winter season, Air France will serve Abidjan (Ivory Coast) daily, including 3 weekly flights by Airbus A380. The Company is also increasing capacity to Dakar (Senegal), by operating the route from Paris-Charles de Gaulle by Boeing 777-300 with 383 seats.

In East Africa, KLM is continuing to specifically adjust its network to market expectations by increasing capacity to Dar es Salaam (Tanzania) and Entebbe (Uganda). Both destinations are served non-stop three times a week from Amsterdam-Schiphol, providing new connecting opportunities to Europe and North America in particular. On the other days these destinations are offered respectively as a continuation of the services to Kilimanjaro (Tanzania) and Kigali (Rwanda). KLM is also strengthening its cooperation with its partner Kenya Airways by offering new connections to Zambia, Zimbabwe, Zanzibar and the Indian Ocean, as a continuation of the service to Nairobi airport which boasts new airport facilities.

In the Indian Ocean, Air France serves Reunion Island up to 11 times per week, including 5 night flights.

Middle East

Air France’s new BEST cabins have been flying to Dubai (UAE) since 23 February 2015. In September 2015, these cabins will also be available to Beirut (Lebanon). Furthermore, the Group maintains its code-share agreements with Middle East Airlines, Saudia and Etihad.

New long-haul products and services

Air France-KLM is continuing to roll out new products and services aiming to be among the best in the world.

By the end of the 2015 summer season, the new Air France BEST cabins will equip 20 aircraft and fly to 18 long-haul destinations:

North America: Los Angeles, New York, Toronto, Washington;
South America: Sao Paulo;
Africa: Bangui, Douala, Libreville, Malabo, Yaoundé;
Middle East: Beirut, Dubai;
Asia: Beijing, Guangzhou, Jakarta, Shanghai, Singapore, Tokyo-Haneda.

On its BEST fleet (Boeing 777-200 and 777-300), Air France is adapting to customer demand during the peak summer period (from mid-July to the end of August) by adjusting in just ten hours the seating configuration of its aircraft. This 'quick change' can replace certain Business class seats with additional Economy seats. These additional seats correspond to the operation of the 3 additional Boeing 777-200 during the entire season.

Furthermore, having renovated its World Business Class cabin on all its Boeing 747-400, KLM is gradually equipping its Boeing 777-200 and then its 777-300 with its new World Business Class and Economy Class. At the end of 2016, 80% of KLM’s fleet will be equipped with fully renovated cabins.

MEDIUM-HAUL: -1.9%

For the 2015 summer season, the Group’s medium-haul capacity is continuing to readjust and is down by -1.9%.

On departure from the hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol

For the 2015 summer season, KLM is expanding its European network on departure from its hub at Amsterdam-Schiphol by adding three new destinations: Belfast (Northern Ireland), Krakow (Poland) and Montpellier (France). These new services will be operated from 18 May 2015 with one daily flight. Furthermore, the number of daily KLM flights to Florence and Basel is increasing from 3 to 4.

On departure from Paris-Charles de Gaulle, Air France is adding a daily flight to Bordeaux (France), Naples (Italy), Billund (Denmark), Bucharest (Romania) and Budapest (Hungary). As of April 2015, the company will be introducing an upgraded product (greater flexibility for business trips, new gourmet attentions) as well as a new leather seat which will be progressively installed on board 24 Airbus A319s. This seat will subsequently equip 25 Airbus A320s during the first half of 2016.

On departure from Paris-Orly and the French regions

As from summer 2015, HOP! Air France is regrouping the entire short-haul network under a single commercial offer. This unified network includes all short-haul routes from Paris-Orly and the French regions. These routes are operated by Air France Airbus or HOP! regional aircraft.

HOP! Air France is continuing to restructure its network during summer 2015 -

On departure from Paris-Orly, HOP! Air France is rationalizing its offer to Toulouse, Strasbourg and Mulhouse by decreasing the number of frequencies while increasing the capacity of its aircraft.

On departure from the French regions, as a continuation of the adjustments initiated in the winter, HOP! Air France is suspending its international flights. However, to meet customer demand, certain destinations will still be operated during the summer holiday period, notably routes to Beirut and North Africa on departure from Marseille; Spain, Italy and Greece on departure from Toulouse; Tel Aviv and Athens on departure from Nice.

TRANSAVIA: +7.8%

As a continuation of the winter season, Transavia is continuing its rapid development in France (+30%) and is consolidating its operations in the Netherlands (-0.8%).

With the ambition to be the leading low-cost airline in terms of destinations from Paris-Orly in 2015, Transavia France is launching 10 new routes this summer:

- On departure from Paris-Orly: Valencia, Dublin, Munich, Thessaloniki, Tirana, Warsaw, Casablanca, Fez and Amsterdam.

- On departure from Nantes: Madrid.

Furthermore, the company is increasing frequencies on many routes including Barcelona, Madrid, Oporto and Lisbon.

In the same way, Transavia Netherlands is concentrating its activity on the hub at Amsterdam-Schiphol, where it will offer new frequencies to Tel Aviv, Larnaca, Malta and Paris-Orly. The Company is also increasing its offer of flights to Alicante, Barcelona, Malaga, Pisa, Naples and Thessaloniki.

Transavia Netherlands will also operate a new route from Rotterdam-The Hague to Berlin. On departure from Eindhoven, the service launched to Athens in February 2015 will continue this summer.

To accompany this rapid growth, Transavia has ordered 20 Boeing B737-800, with 17 firm orders and another three options. These aircraft will support the rapid growth of Transavia France and the development of Transavia Netherlands. The delivery of these aircraft will begin in January 2016 and will continue until 2018.

KLM Newsroom

Positive results in KLM‘s annual report 2015

Air France KLM - Full Year 2015 Results.

Operating result (€m)

Passenger network[1]

Cargo business

Maintenance

Transavia

Other business: Catering

Outlook

Assets

Liabilities and equity

Air France KLM - December 2015 Traffic Results

AIRFRANCE KLM Financial Year 2015: Third Quarter results.

AIRFRANCE KLM August 2015 Traffic Results.

Traffic July 2015

AirFrance-KLM Financial Year 2015: First Half results.

Operating result (€m)

AFKL May 2015 Traffic Results

AIRFRANCE KLM Financial Year 2015: First Quarter results.

Air France KLM Summer Schedule 2015