Fly Responsibly

In 2019, KLM introduced its Fly Responsibly sustainability initiative, directed at transforming KLM into a more sustainable airline. In addition to fleet renewal, scaling-up production and use of SAF form the cornerstone of KLM’s approach. Cooperation and supportive policies are needed to create a level playing field upon which SAF will become the standard. Elbers: “A successful, ambitious climate policy hinges on cooperating well with industry parties, knowledge institutions and governments. Together, we must reach solid agreements that truly support the energy transition.”

Despite the huge impact of Covid-19, sustainability has remained a top priority for KLM. In 2021, KLM added the first of 25 new Embraer 195-E2 aircraft to its fleet. This aircraft emits 31% less CO2 per passenger than its predecessor. KLM also took part in trials involving sustainable taxiing and operated the world’s first commercial flight powered by a fuel mixture containing synthetic kerosene.

How does SBTi work?

SBTi is a partnership between four NGOs and knowledge institutions: the Carbon Disclosure Project (CDP), World Resources Institute (WRI), UN Global Compact and World Wide Fund for Nature (WWF). SBTi helps private-sector organisations to set climate targets in line with the Paris Climate Agreement, based on what science tells them is necessary to honour the agreement, and to give short and medium-term targets concrete shape. Working with SBTi will enable KLM to gradually reduce its CO₂ emissions per passenger-kilometre. Until the targets for Air France-KLM are set and validated, KLM will continue to work on its current ambitions for 2030.

For the Netherlands, the connection with the rest of the world via Schiphol is of strategic importance. That is why, in 2020, the Dutch State supported KLM with a loan of EUR 1.0 billion and EUR 2.4 billion in guarantees on credit facilities, linked to major conditions. KLM is grateful to the Dutch government for its support.

In time, KLM will also need capital. For that purpose the Dutch State is in talks with Brussels, Air France-KLM, KLM and other stakeholders. As long as these discussions are ongoing, KLM will not comment on the progress of these talks.

The partnership makes it easier for customers to build their ideal trip across the Atlantic by combining flights operated by KLM, Air France, Virgin Atlantic and Delta. Customers booking on a codeshare benefit from seamless connections, and a single booking reference. Customers travelling on codeshare flights will also be able to earn miles, and redeem them via their own airline loyalty scheme.

KLM and Air France increase flight options across the Atlantic

KLM and Air France customers can now access 24 new routes to North America on flights operated by Virgin Atlantic and Delta departing the UK including connections via London Heathrow or Manchester. Customers can benefit from additional frequencies to destinations such as Miami from Amsterdam via London Heathrow alongside increased options to fly between Paris and New York-JFK via Manchester.

Virgin Atlantic brings the UK’s Regions closer to North America

Virgin Atlantic customers can now book a wide range of additional flights at virginatlantic.com – opening up 58 new routes from 18 UK airports across the Atlantic with KLM and Air France. Examples of new route options from the UK include Edinburgh – Toronto via Amsterdam, and London Heathrow - Chicago via Paris.

More options to fly Delta

Delta is building on its successful partnerships with Air France, KLM and Virgin Atlantic, giving customers from these airlines more opportunity to fly on Delta’s transatlantic services. Virgin customers travelling between the United Kingdom and the US now have the choice to connect onto all of Delta’s flights over Amsterdam and Paris. Meanwhile Air France and KLM customers have additional options to fly either nonstop or via the UK on all Delta services to the US.

Virgin Atlantic, Delta and Air France–KLM are set to form an expanded joint venture later in 2019. Subject to final clearance from regulators, the airlines will be founding members of a $13bn transatlantic partnership for customers between the UK, Europe and North America, offering over 300 daily transatlantic flights, 108 non-stop routes, and over 340 destinations.

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

For further press information please contact:

Virgin Atlantic press office on press.office@fly.virgin.com or call 01293 747373

Air France press office call +33 1 41 56 56 00 or visit www.airfranceklm.com

KLM press office on mediarelations@klm.com or call +31206494545

Delta Air Lines press office on Media.Delta@delta.com or call +1 404 715 2554

Notes to Editor:

1. The combined codeshare network serves 18 airports in the U.K. including: Aberdeen, Belfast, Belfast City, Birmingham, Bristol, Cardiff, Durham, Edinburgh, Glasgow, Humberside, Inverness, Leeds-Bradford, London-City, London-Gatwick, London-Heathrow, Manchester, Newcastle and Norwich.

2. Virgin Atlantic codeshare on Air France operated Flights:

Virgin Atlantic codeshare on KLM operated Flights:

Virgin Atlantic codeshare on Delta operated Flights from CDG and AMS:

3. Air France and KLM codeshare on Virgin operated Flights:

Expanded Air France and KLM codeshare on Delta operated Flights from the UK:

About Virgin Atlantic

Virgin Atlantic was founded by entrepreneur Sir Richard Branson 34 years ago with innovation and customer service at its core. Today Virgin Atlantic carries 5.4 million customers annually, and was recently voted Britain’s only Global Five Star Airline by APEX two years running in the Official Airline Ratings. Headquartered in London, Virgin Atlantic employs over 10,000 people worldwide and operates a fleet of 46 aircraft serving 26 destinations across four continents. Alongside joint venture partner Delta Air Lines they operate a leading transatlantic network - offering up to 38 flights per day between the UK and US with onward connections to over 200 US and international cities. In 2019 Virgin Atlantic will take delivery of their first Airbus A350-1000 aircraft - helping to transform the fleet into one of the quietest and most fuel efficient in the sky. Virgin Atlantic recently achieved the highest sustainability ranking of any airline globally with an A- Leadership rating in the 2018 Carbon Disclosure Project performance assessment.

On May 15, 2018 Air France-KLM, Delta Air Lines and Virgin Atlantic Limited signed definitive agreements to combine the existing trans-Atlantic joint ventures. This transaction is in the process of regulatory clearance. Upon completion the airlines’ expanded joint venture will become the preferred choice for customers travelling across the Atlantic offering the most comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. Customers will also benefit from the co-location of facilities at key hub airports to improve connectivity and access to each carrier’s airport lounges for premium passengers.

For more information visit: www.virginatlantic.com or www.virginholidays.co.uk or via Facebook, Twitter and Instagram @virginatlantic @virginholidays

A world leader with a strong European base, the Air France-KLM group's main areas of activity are passenger and cargo air transport and aircraft maintenance.

About Air France-KLM

Air France-KLM is the leading group in terms of international traffic on departure from Europe. It offers its customers access to a network covering 314 destinations in 116 countries thanks to Air France, KLM Royal Dutch Airlines and Transavia. With a fleet of 548 aircraft in operation and 101.4 million passengers carried in 2018, Air France-KLM operates up to 2,300 daily flights, mainly from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol.

Its Flying Blue frequent flyer programme is one of the leaders in Europe with over 15 million members.

Together with its partners Delta Air Lines and Alitalia, Air France-KLM operates the largest transatlantic joint venture with more than 275 daily flights.

The Group also offers cargo transport and aeronautical maintenance solutions.

Air France-KLM is a member of the SkyTeam alliance which has 19 member airlines, offering customers access to a global network of over 14,500 daily flights to more than 1,150 destinations in more than 175 countries.

airfranceklm.com

@AirFranceKLM

About Delta

Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in products, services, innovation, reliability and customer experience. Powered by its 80,000 people around the world, Delta continues to invest billions in its people, improving the air travel experience and generating industry-leading shareholder returns. Headquartered in Atlanta, Delta offers more than 5,000 daily departures and as many as 15,000 affiliated departures including the premier SkyTeam alliance, of which Delta is a founding member. The airline serves nearly 200 million people every year, taking customers to more than 300 destinations in over 50 countries. Delta operates significant hubs and key markets at airports in the United States and worldwide in conjunction with its alliance partners. More about Delta can be found on the Delta News Hub as well as delta.com, via @DeltaNewsHub on Twitter and Facebook.com/delta.

[1] As soon as regulatory approvals permit

[2] Starts 31Mar19

[3] Starts 6Jun19

[4] Resumes 31Mar19

[5] Not available for connecting itineraries in the UK or EUR

[6] Starts 31MAR19

Transavia’s passenger figures declined by 3.6% in August, with traffic decreasing faster than capacity, resulting in slightly lower load factor (93.9%) than in August last year. 

klik hier voor het hele persbericht

You can find the press release of AF/KL on the website of the Air France-KLM Group.

Jean-Marc Janaillac will discuss the results and the personal consequences he has attached to this outcome with the AFKL Board and the AF Board next week. In anticipation of these discussions, I would be happy to contribute to the stability and internal cohesion of the AFKL Group wherever possible. Internal support and solidarity are extremely important during such trying times.

The joint Air France KLM Traffic Results of January 2018 are available in the download box in this message.

There is currently a network failure in the Amadeus global computer system, which is used by KLM and other airlines. The failure has consequences for all Amadeus users, including KLM and Air France. Owing the failure, the KLM booking system is temporarily not working as it should, and there also are problems with rebooking passengers. Previous problems relating to check-in have now been resolved. Until now, 24 flights have been delayed as a result.

The study obtained by current affairs programme EenVandaag, surveying 50 Air France and KLM managers, was commissioned by the French-Dutch trade unions and assesses the sentiments of both French and Dutch managers.

In view of the discussions held in recent years and months, we understand the sentiments expressed and acknowledge the circumstances sketched in the report. There is room for improvement in some areas. However the report also addresses other areas which are performing well. We will consider these sentiments with all due diligence.

During the coming period, we will join hands with Air France to see how we can learn from this and bring about improvements wherever necessary.

At the same time, KLM continues to renew the KLM Cityhopper fleet. Last Saturday KLM took possession of its fifth Embraer 175 and plans to increase the number to fifteen. Transavia also showed also a very considerable growth in January. The decrease in service at KLM Cargo slowed in January compared to the 10% average across 2016. It now stands at 4.9%, below that of January 2016 against a reduced capacity of 1.6%.

(*) The joint Air France KLM Traffic Results of January 2017 can be found in the download box. 

Growth was strong in Europe, with passenger traffic up 8% and capacity up 8.5%. Load factor was particularly high on routes to Spain and Portugal. Performance was also strong in North America and Asia, with load factor to Montreal at 93% and a sharp increase in load factor to Atlanta. Passenger traffic to Beijing was up 5%, with capacity stable. The increase in passenger traffic to African destinations also exceeded capacity growth. There was a 15% increase in traffic on routes to South Africa.

In a declining market, KLM Cargo saw a slight increase in cargo traffic to North and South American destinations.

These great figures for October may be attributed to the efforts of the KLM employees out there offering every passenger a special travel experience.”

Pieter Elbers, KLM President & CEO

(*) The Air France KLM traffic results can be found in the download section of this release. 

Pieter Elbers 
President-directeur KLM 

(*) Left the press release about Trust Together Air France - KLM.

• Revenues of 11.82 billion euros, down 2.6% both reported and like-for-like
• EBITDAR of 1,522 million euros, an improvement of 486 million euros, up 597 million euros like-for-like
• Strong operating free cash flow² generation: 373 million euros
• Further net debt reduction: net debt² of 4.04 billion euros, down 265 million euros compared to 31 December 2015
• Adjusted net debt / EBITDAR² ratio of 2.9x, an improvement of 0.5 points compared to 31 December 2015

FULL YEAR 2016 OUTLOOK

• High level of geopolitical and economic uncertainties, increasing pressure on unit revenues and special concern about France as a destination
• Impact of fuel savings on P&L expected to be more than offset in the coming quarters by downward pressure on unit revenue and negative currency impacts
• Continued progress in unit cost reduction, targeted at around 1% ex fuel in 2016
• Free operating cash flow generation after disposals maintained between 0.6 billion euros and 1.0 billion euros in 2016
• Further significant net debt reduction 

The Board of Directors of Air France-KLM, chaired by Jean-Marc Janaillac, met on 26^th July 2016 to approve the accounts for the First Half of the Financial Year 2016.

Key data

* Servair reclassified as discontinued operation.

The consolidated financial statements of the Group were revised as of 1^st January 2016 in order to reflect Servair as a discontinued operation. The 2015 financial statements have been restated accordingly. Details of this restatement can be found in the appendix of this press release.

Second Quarter 2016 total revenues stood at 6.22 billion euros versus 6.56 billion euros in Second Quarter 2015, down 5.2% as a result of increasing pressure on unit revenue and down 3.7% like-for-like.

Currencies had a negative 104 million euro impact on revenues, primarily driven by the weakening of currencies other than the US dollar against the euro, notably the BRL, GBP, CNY, CAD and ZAR. The negative effect on revenues was partly offset by the positive effect of currencies on costs, which amounted to 58 million euros. The net impact of currencies on the operating result thus amounted to a negative 46 million euros.

Total operating costs were 7.5% lower year-on-year and down 6.7% on a like-for-like basis. Ex-fuel, they increased by 0.3% and by 0.5% on a like-for-like basis. Unit cost per EASK was down 1.5%, on a constant currency, fuel price and pension-related expense basis, against stable capacity measured in EASK (+0.3%).

The fuel bill amounted to 1,167 million euros, down 29.7% and down 27.6% like-for-like. Based on the forward curve at 15 July 2016, the Full Year 2016 fuel bill is expected to reach 4.6 billion euros[1] and the Full Year 2017 fuel bill could amount to 4.4 billion euros.

Total employee costs including temporary staff were down 2.7% to 1,862 million euros. On a constant scope and pension-related expense basis, employee costs decreased by 2.9% and by 3.6% excluding the increase in the profit sharing scheme.

Over the Second Quarter 2016, 15% of the savings achieved on the fuel bill were retained, down significantly from the 55% retained during First Quarter 2016. During the Second Quarter, the positive fuel price effect of 408 million euros was largely offset by pressure on unit revenues (negative 300 million euros) and currency impacts (negative 46 million euros).

EBITDAR amounted to 991 million euros, a reported increase of 179 million euros and up 226 million euros like-for-like.

EBITDA amounted to 728 million euros, an increase of 171 million euros. Like-for-like, EBITDA increased by 211 million euros, mainly as a result of the strong Passenger network performance, which improved by 186 million euros like-for-like.

* Servair reclassified as discontinued operation.

Second Quarter 2016 EBITDA improved by 60 million euros like-for-like at Air France and 151 million euros like-for-like at KLM. EBITDA margins were up at both airlines, reaching 10.0% at Air France and 13.8% at KLM.

* Servair reclassified as discontinued operation.

In the First Half 2016, total revenues stood at 11.8 billion euros versus 12.1 billion euros in the first half 2015, down 2.6% reported and on a like-for-like basis. The fuel bill amounted to 2,263 million euros, a reported decrease of 28.0% and down 29.1% on a like-for-like basis.

Over the first six months, savings achieved on the fuel bill (positive 858 million euros excluding currency) were partly offset by pressure on unit revenues (negative 419 million euros excluding currency) and negative currency impacts (negative 125 million euros) resulting in 37% of the fuel savings being retained.

In the First Half 2016, EBITDA amounted to a positive 994 million euros, an increase of 463 million euros. On a like-for-like basis, EBITDA increased by 582 million euros.

At 952 million euros, the Passenger Network was the main contributor to the EBITDA, up 541 million euros like-for-like. Despite the challenging Cargo operating context, marked by structural industry overcapacity, Cargo EBITDA improved by 37 million euros like-for-like mainly as a result of restructuring efforts.

The operating result stood at 218 million euros versus negative 238 million euros in 2015, an improvement of 456 million euros. Like-for-like, the operating result increased by 580 million euros.

The net result, group share stood at negative a 114 million euros against a negative 638 million euros a year ago.

At 30 June 2016, the trailing 12 months return on capital employed (ROCE) was 11.7%, up 6.3 points compared to 30 June 2015.

Passenger network[2] business

Second Quarter 2016 total passenger network revenues amounted to 4,940 million euros, down 5.8% and down 4.3% like-for-like. The Air France pilot strike negatively impacted the operating result by an estimated 40 million euros. The operating result of the passenger network business stood at 337 million euros, versus 210 million euros for the Second Quarter 2015. Like-for-like, the operating result was up 156 million euros.

The Group maintained its strict capacity discipline, keeping total passenger network capacity stable (-0.2%). Unit revenue per Available Seat Kilometer (RASK) remained volatile and was on average down by 4.1% excluding currency. The increasing pressure on unit revenue during the quarter reflected the weak supply-demand balance in the different regions of the network and increasingly soft flows to France as a destination.

In the First Half 2016, passenger network revenues amounted to 9,413 million euros, down 2.6% and down 2.4% on a like-for-like basis. The operating result of the passenger network business stood at319 million euros, versus a negative 112 million euros in the First Half 2015, an improvement of 431 million euros and 531 million euros like-for-like.

The capacity outlook is unchanged with an increase over the Full Year 2016 of around 1% Available Seat Kilometer (ASK) in the passenger network expected as a result.

Cargo business

The Group continued to restructure its Cargo activity to address the weak global trade and structural air cargo industry overcapacity. During Second Quarter 2016, full-freighter capacity was thus reduced by 16%, leading to a decrease in total Cargo capacity of 3.2%. Revenue per Available Ton Kilometer (ATK) was down by 12.9% like-for-like.

The operating result stood at negative 66 million euros, an improvement of 21 million euros like-for-like resulting from a strong decrease in unit costs (-14.0% like-for-like) due to the restructuring measures taken.

First Half 2016 Cargo revenues amounted to 1,036 million euros, down 15.5% like-for-like. At -116 million euros, the operating result increased by 38 million like-for-like.

One MD11 freighter was retired during the First Quarter, and two MD11 freighters were phased out during the first week of July 2016 reducing the total number of full freighters in operation to six. This reduction should enable the full-freighter business to return to operating breakeven in 2017. The operating result of the Full Freighter business stood at negative 12 million euros over the first six months of 2016, an improvement of 25 million euros compared to the First Half 2015.

Maintenance business

Second Quarter 2016 third party maintenance revenues amounted to 435 million euros, up by 9.8% and by 12.9% like-for-like. Revenues benefited not only from the strong dollar relative to the euro but also from the contracts gained in previous years.

The operating result stood at 57 million euros, up 6 million euros year-on-year, and up 9 million euros like-for-like.

During the First Half 2016, third party maintenance revenues increased by 11.6% and by 9.9% like-for-like. At 95 million euros, the operating result improved by 9 million euros.

Over the period, the maintenance order book recorded a further 10% increase to reach a record high of 9.2 billion dollars, including several new A350 support contracts.

Transavia

In the Second Quarter 2016, Transavia capacity was up by 12.1%, reflecting the accelerated development in France (capacity up by 30%) and the opening of the Munich base on 25^th March 2016. Traffic, measured in revenue passenger kilometers (RPK), rose by 9.8%. The load factor remained high (88.4%) despite the increase in capacity.

The unit revenue per ASK decreased by 4.9%, mainly due to geopolitical unrest and intensification of low cost competition. Unit costs per ASK decreased by 3.3% and by 10.0% at constant currency and stage length. The operating result stood at a negative 12 million euros, down 6 million euros but stable like-for-like.

In the First Half 2016, Transavia revenues amounted to 483 million euros, up 7.3%. The operating result remained stable at a negative 75 million euros.

The rapid development of Transavia will continue in the Second Half of 2016, a capacity increase, measured in Available Seat Kilometer (ASK), of around 15% for the Full Year 2016, unchanged on the previous outlook.

Financial situation

* Servair reclassified as discontinued operation.

In the First Half 2016, the increase of 463 million euros in EBITDA translated into a 491 million euro increase in cash flow before change in WCR and cash out related to Voluntary Departure Plans. The Group disbursed 173 million euros for Voluntary Departure Plans. The change in Working Capital Requirement contributed 793 million euros to operating cash flow. Net investments before sale & lease-back transactions stood at 1,056 million euros. As a result, operating free cash flow reached 373 million euros, up 108 million euros compared to the First Half of 2015.

Net debt amounted to 4.0 billion euros at 30 June 2016, versus 4.3 billion euros at 31 December 2015, an improvement of 265 million euros. Currencies had a significant negative impact of 142 million euro on net debt.

The trailing 12 months adjusted net debt/EBITDAR ratio stood at 2.9x at 30 June 2016, down 0.5 points compared to 31 December 2015, and down 1.0 points compared to 30 June 2015.

The 80 basis point fall in discount rates (for period > 20 years) during First Half 2016 led to another significant increase in the actuarial valuation of retirement obligations of more than 2.7 billion euros. The change in asset value amounted to 811 million euros during the First Half. The balance sheet pension situation thus moved from a net liability of 177 million euros at 31 December 2015 to a net liability of 1,979 million euros at 30 June 2016.

At 30 June 2016, equity, group share, amounted to negative 733 million euros, down 1,006 million euros over the First Half mainly due to the increase in the net pension liability.

The Group continues to enjoy a good level of liquidity, with net cash of 3.8 billion euros at 30 June 2016, and undrawn credit lines of 1.8 billion euros.

Outlook

The global context in 2016 remains highly uncertain regarding the geopolitical and economic environment in which we operate, fuel prices and the continuation of the overcapacity in the airline industry resulting in an increasing pressure on unit revenues and a special concern about France as a destination.

Under these conditions, the Group is expecting for Full Year 2016:

• Free operating cash flow generation after disposals is maintained between 0.6 billion euros and 1.0 billion euros. The updated 2016 investment plan (between 1.8 billion euros and 2.0 billion euros, including buying back aircraft under operating lease) and disposals programme (between 0.3 billion euros and 0.6 billion euros) will continue to be adjusted depending on operating cashflow generation
• Impact of fuel savings on the P&L expected to be more than offset in the coming quarters by downward pressure on unit revenue and negative currency impacts
• Non fuel unit cost reduction target remain around 1% at constant currency
• Further significant reduction in net debt

*****

Limited review procedures were carried out by the external auditors. Their limited review report was issued following the Board Meeting.

The results presentation is available at www.airfranceklm.com on July 27^th 2016 from 7:15am CET.

INCOME STATEMENT