KLM was forced to take drastic measures to manage operations, for example restricting ticket sales to passengers departing from Schiphol and cancelling flights. The airline will continue pursuing these measures in the period ahead to improve network predictability. The essence was and remains: to ensure that every customer who books can fly.

KLM and Transavia carried a total of 9.5 million passengers in the third quarter. Cargo performed well despite having less belly capacity available, and Engineering & Maintenance (E&M) welcomed back customers. Taken together, these factors led to operating profits of €443 million in the third quarter of 2022, compared to €169 million in the same quarter of 2021. Revenues stood at €3.236 billion compared to €1.890 billion in 2021.

On the cost side, KLM faced sharp increases in the past quarter, due in part to the high oil price, inflation, supply chain shortages and costs associated with rebooking and compensating passengers affected by network interventions. Since the start of Schiphol’s security issues in April, which continued through September, direct costs alone have amounted to almost €70 million, compounded by the loss of revenue.

Traditionally, the third quarter is especially strong in the air transport industry, but KLM has now incurred a loss of EUR 234 million for the quarter, down EUR 745 million compared to Q3 last year. The result incurred during the first nine months of 2020 has deteriorated by 1,7 billion compared to 2019.

There were cautious signs of recovery in July and August, with an increase in bookings for KLM’s European flights. Regrettably, KLM was forced to respond to changing travel warnings for many European countries in September, downscaling its European network for the winter season, which will result in a further decline in revenues.

A wide array of measures have already been taken to downsize KLM operations in line with the sharp decline in demand and flights. By the end of the year, the KLM Group will have bid farewell to around 5,000 employees (-15%). In view of recent developments prompted by the second wave of the pandemic and the sombre outlook, further rightsizing of the organisation will be considered.

• 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