KLM Cargo showed positive results in July. Traffic increased by 2.7% against a drop in capacity of 1.4%. The result was an increase in cargo load factor of 2.5%^pts to 65%. Transavia welcomed fewer passengers in July than in the same month the previous year. With decreased traffic and capacity, load factor decreased slightly as a result of the earlier suspension of activities in Munich.

(*) The joint Air France KLM traffic results are available in the download box of this message.

At KLM Cargo, the 2.3% drop in cargo transport was less strong than the 3.2% decrease in capacity, which increased the cargo load factor by 0.6 percentage point.

The joint Air France KLM traffic results for July 2017 are available in the download box in this message. 

The Cargo business continued to face unrelenting challenges in July with almost 12% less traffic against a capacity reduction of close to 7%, resulting in a decrease in load factor of almost 3 percentage points.

Transavia NL continued with the successful replacement of (long-haul) charter flights with (far shorter) scheduled services. This generated a sharp increase in passenger numbers.

As a result, passenger operations once again reflect strong traffic figures for the busy summer season, showing that we’re heading in the right direction. I can see how hard everyone is working to make KLM a great company again. Within this context, “Change, Compete & Win” are and will remain key words for me. The necessary changes must be pushed through, however difficult this may be. Without this, we will not be able to achieve the margins necessary for a healthy future. And we must do so in order to regain our stature as a company with a bright future as well as a proud history. I am confident that we can achieve this together.

“Proud of our history, committed to our future”

CEO KLM Pieter Elbers

• 7.5 million passengers, -0.6%
• Slight decrease in load factor of the long-haul network, while stable in the short and medium-haul network
• Excluding the estimated impact of the Air France cabin crew strike, the unit revenue per available seat kilometer (RASK) ex-currency down mid-single digit compared to July 2015, reflecting the weak supply-demand balance in the different regions of the network and soft local flows to France
• The impact of the seven day Air France cabin crew strike (period July 27th – August 2nd) on the operating result is estimated around € 90million

Please find the entire pressrelease in the download section of this release.

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

1.3 million passengers, up 9.4%

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

8.9 million passengers, up 2.4%

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

STATISTICS

Passenger network activity*

* Air France, KLM, and HOP!

Transavia activity

Total group passenger activity**

** Air France, KLM, HOP! and Transavia

Cargo activity

• 7.5 million passengers, +1.3%
• Continued reduction of domestic France point-to-point capacity (ASK), - 7.2%
• Unit revenue per available seat kilometer (RASK) ex-currency down compared to July 2013, affected by industry over-capacity on North America and Asia routes

Transavia

• 1.2 million passengers, + 5.4%
• Ongoing accelerated development of Transavia France: capacity (ASK) +21.5%

Cargo

• Unit revenue per available ton kilometer (RATK) ex-currency down compared to July 2013

Agenda

• 8^th September 2014: August 2014 Traffic
• 11^th September 2014: Investor day on new strategic plan ‘PERFORM 2020’
• 8^th October 2014: September 2014 Traffic

• On the Americas network, traffic rose 2.4% for capacity up by 1.6% leading to a 0.7 point rise in load factor to the record level of 91.3%
• The Asia network recorded a 4.6% rise in traffic and capacity, the load factor gaining 0.1 points to 89.4%.
• On the Africa and Middle East network, traffic increased by 1.3% for capacity up by 3.1%. The load factor declined by 1.5 points to 83.6%.
• The Caribbean and Indian Ocean network saw a 2.5% fall in traffic in line with the 2.3% reduction in capacity. The load factor was virtually unchanged (-0.2 points) at 85.2%.
• Traffic on the European network was stable (+0.1%) for capacity down 1.8%, leading to a 1.6 point improvement in load factor to 82.0%.

Cargo
Cargo recorded a 5.8% drop in traffic for capacity down 2.9%, the load factor declining by 1.8 points to 59.7%. Unit revenue per available tonne kilometre (RATK) ex-currency decreased compared with July 2012.

The group realised a satisfactory third quarter across all its businesses with the exception of cargo. In passenger, the limited capacity increase in the industry led to an improvement in unit revenues, which, for the group, were also helped by a positive foreign exchange effect due to the depreciation of the euro versus other currencies. On the other hand, the cargo business continued to deteriorate over the quarter. As previously indicated, measures undertaken in the context of the plan Transform 2015 are starting to have a significant impact on costs.

(!) on the right side of this page you can download the complete overview of the Financial Year 2012 - Quarter July-September 2012 document (PDF).

• On the Americas network traffic rose by 9.6%, in line with the increase in capacity (+9.3%). The load factor gained 0.3 points to 90.3%.
• Traffic on the Asia network was up 8.1% for capacity up 6.6%. The load factor stood at 91.4% (+1.3 points). With a load factor of 86%, Japan routes are improving, with traffic 14% lower than last year.
• The Africa and Middle East network continued to be affected by the various crises. Traffic declined by 4.1% for capacity down 3.9%. The load factor was stable at 85.0% (-0.2 points).
• The Caribbean and Indian Ocean network saw a rise of 9.4% in traffic for capacity up by 7.2%. The load factor gained 1.6 points to 83.4%.
• The European network remained dynamic with traffic up by 7.2% for capacity up by 3.8%. The load factor reached 82.0%, a rise of 2.7 points.

Cargo business
The context was comparable to previous months, with unrest in Africa and the Middle East and a situation of overcapacity on Asia departures. Despite strict capacity control (+0.6%), traffic declined by 2.7%, leading to a 2.1 point reduction in load factor to 64.0%. The unit revenue per available ton kilometer (RATK) ex currency declined relative to the previous year.

Recent developments

• On 7th July 2011, the Annual General Meeting approved the change in the financial year end, now fixed at 31st December.
• On 11th July 2011, Air France presented its new offer from Marseille in the context of its ‘provincial bases project’. As of 2nd October 2011, Air France will offer 13 new direct flights. This strategy will be extended in spring 2012 to Toulouse, Nice and Bordeaux.

Traffic rose by 1.2% in July with stable capacity, leading to a 1.1 points increase in load factor to 86.2%. Passenger numbers amounted to 6.9 million.

As in the previous two months, unit revenue per available seat kilometer (RASK) ex-currency saw a strong year-on-year rise, with a marked recovery in both Premium and Economy classes. In long-haul, the rise was especially strong on the Asia and Americas networks. In medium-haul, the capacity adjustments undertaken in the context of the product overhaul led to a high load factor of 79.1%, the highest ever achieved since the merger of Air France and KLM. On the Paris-Europe routes, unit revenues were driven by the strong performance of the new ‘Premium eco’ class, aimed at the business traveler.

• On the Americas network, traffic declined by 1.4% with capacity down 1.5%. The load factor gained 0.1 point to 90.1%.
• Traffic on the Asia network was dynamic (+5.1%) for capacity up 2.4%. The load factor stood at 90.1%, a rise of 2.3 points.
• On the Africa and Middle East network, traffic was up 3.4% with capacity up by 3.1%. The load factor was slightly up (+0.3 points) at 85.3%.
• On the Caribbean and Indian Ocean network traffic rose by 4.6% for capacity up by 5.4%. The load factor shed 0.6 points to 81.8%.
• The European network saw further capacity adjustments (-4.4%). Traffic declined slightly (-1.4%), leading to a load factor of 79.1%, a rise of 2.4 points.

Cargo business

Traffic rose 1.7% with capacity reduced by 2.1%. The load factor gained 2.4 points to 66.2%. Unit revenues per available tonne kilometer (RATK) rose strongly relative to July 2009.