Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — Q1 2025 Earnings Presentation
24 slides from Air France-klm Sa's earnings presentation, April 2025
Slide 1: Q1 2025 Results
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Slide 2: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Benjamin Smith – Chief Executive Officer Air France-KLM 2
Slide 3: Improved performance with robust cash flow generation
Passengers carried Group revenues IMPROVED PERFORMANCE WITH +4% +8% ROBUST CASH FLOW GENERATION 21.8m €7.2bn 20.9m €6.7bn • Revenues up by 8%, driven by all businesses including maintenance • Group unit revenue up +3.0%¹ versus last year • Operating result improved by €161m, to -€328m, significantly
Slide 4: Europe destination remains attractive despite uncertainty
EUROPE DESTINATION REMAINS ATTRACTIVE DESPITE UNCERTAINTY Industry bookings for May-June 2025 travel Europe inbound market is +2.1% YoY EU2 Inbound +7.3% YoY strongly increasing… EU2 weight: 34% EU2 weight: 49% …while outbound market to the US is redirecting to other markets United -2.4% YoY EU2 out
Slide 5: Transforming the group's airlines products to better meet market demand
TRANSFORMING THE GROUP’S AIRLINES PRODUCTS TO BETTER MEET MARKET DEMAND UNIQUE BRAND PORTFOLIO Amsterdam as Global Hub AMS LONG- HAUL Paris as Global Hub and large destination1 CDG Point-to-Point to Amsterdam and hub feeding AMS SHORT & MEDIUM- Point-to-Point to Paris and hub feeding CDG HAUL Hybrid
Slide 6: Launch of the new Air France La Première product
LAUNCH OF THE NEW AIR FRANCE LA PREMIÈRE PRODUCT, THE NEW LUXURY TRAVEL EXPERIENCE ON THE GROUND AND IN THE SKIES Day bed and armchair Transforms into a full flat bed 5 windows 3.5m2, +25% space Complete privatization option Double suite, fully partitioned 3 stars dining menu Star-chef signed menus
Slide 7: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 7
Slide 8: First quarter operating result supported by unit revenue and fuel price development
FIRST QUARTER OPERATING RESULT SUPPORTED BY UNIT REVENUE AND FUEL PRICE DEVELOPMENT Operating margin Operating result evolution +161m -4.6% +2.8pt 190 -51 -23 Revenue YoY -489 181 -136 -328 Q1 2024 Unit revenue1 Unit cost2 Fuel price3 Currency Other Q1 2025 €7.2bn +7.7% YoY Net result Operating Key
Slide 9: Continued margin expansion for network and maintenance
CONTINUED MARGIN EXPANSION FOR NETWORK AND MAINTENANCE Unit Revenue2 Revenues Operating result Operating Q1 2025 vs Q1 2024 Capacity 1 Change Change Change Constant Curr. (€ m) (€ m) margin +2.5% +2.8% 5,416 +6.3% Network -193 +163m -3.2% +3.1 pt +0.3% +16.2% 622 +10.8% Transavia +13.6% +0.1% 526 +1
Slide 10: Solid operating result development for both airlines
SOLID OPERATING RESULT DEVELOPMENT FOR BOTH AIRLINES THANKS TO STRONG UNIT REVENUE AND IMPROVED OPERATIONS Q1 2025 vs Q1 2024 Capacity Revenues Change Operating Change Operating Change change (€ m) YoY result YoY margin YoY (€ m) +5.5% 4,346 +7.8% -183 +66 -4.2% +2.0 pt +1.4% 2,946 +7.7% -199 +92 -6
Slide 11: Solid unit revenue development supported by long haul and premium segment performance
SOLID UNIT REVENUE DEVELOPMENT SUPPORTED BY LONG HAUL AND PREMIUM SEGMENT PERFORMANCE Q1 2025 vs Q1 2024 Total Long-Haul Short & Medium-Haul1 Transavia Total 87% 82% 86% 86% 7.8% 13.6% 3.8% 3.0% 1.5% 3.9% 2.3% -0.2 pt 0.0 pt -0.6 pt -2.7% -2.3 pt Premium1 North America Caribbean & Indian Ocean Asia
Slide 12: Unit cost increased mainly due to premiumization, haul mix and airport & ATC charges
UNIT COST INCREASED MAINLY DUE TO PREMIUMIZATION, HAUL MIX AND AIRPORT & ATC CHARGES Unit cost1 per ASK evolution In % year-over-year 1.1% -0.6% 2.1% 3.0% 1.5% 0.7% -0.6% Labour price Productivity Operations incl. Airport & ATC charges Unit revenue FY 2025 unit cost Q1 2025 Unit revenue fuel efficie
Slide 13: Positive recurring adjusted operating free cash flow supported by summer ticket sales
POSITIVE RECURRING ADJUSTED OPERATING FREE CASH FLOW SUPPORTED BY SUMMER TICKET SALES Q1 2025 Free cash flow evolution Exceptionals: Leverage ratio (Net debt/EBITDA) 1.6x In € m • €122m deferred social charges and wages taxes Cash at hand at end March €9.3bn 1,537 7,332 6,928 -1,009 155 -139 589 122
Slide 14: Outlook
OUTLOOK Steven Zaat – Chief Financial Officer Air France-KLM 14
Slide 15: Consistent trend in bookings despite uncertainty
CONSISTENT TREND IN BOOKINGS DESPITE UNCERTAINTY Long-Haul Short & Medium-Haul Transavia Total Long Haul North Atlantic 76% Q2 75% 72% 74% 71% 71% 64% 63% 2024 2025 2024 2025 2024 2025 2024 2025 Forward booking load factor 2024 Forward booking load factor 2025 Snapshot of the 23rd of April 2024 and
Slide 16: Total fuel bill further down due to geopolitical context
TOTAL FUEL BILL FURTHER DOWN DUE TO GEOPOLITICAL CONTEXT SAF premium 170 310 cost (€m) 7,310 ~6,700 Fuel bill after hedge excl SAF ($m) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Market Brent ($ per bbl) 80 75 67 66 65 68 price Jet fuel ($ per metric ton) 872 804 754 740 735 757 FY 2026 21% hed
Slide 17: Group capacity outlook 2025 unchanged
GROUP CAPACITY OUTLOOK 2025 UNCHANGED RETAINING AGILE APPROACH TO CAPACITY MANAGEMENT FY 2025 Long Haul +3-5% Short and Medium Haul +3-5% Transavia 10% Total +4-5% vs. 2024 17
Slide 18: Outlook 2025 unchanged despite uncertainty
OUTLOOK 2025 UNCHANGED DESPITE UNCERTAINTY FY 2025 Group Capacity +4-5% vs. 2024 Unit cost1 Low single digit increase Net Capex (c.80% fleet/fleet related) €3.2 - €3.4bn Net Debt/EBITDA Between 1.5x and 2.0x 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Sc
Slide 19: Concluding Remarks
CONCLUDING REMARKS Benjamin Smith – Chief Executive Officer Air France-KLM 19
Slide 20: To conclude
TO CONCLUDE ROBUST START OF THE YEAR Sustained demand and solid summer ticket sales drove revenue growth and improved cash flow across all businesses. AGILITY AMID CURRENT MACRO UNCERTAINTY Solid positioning to adapt to a shifting environment, with diversified network OUTLOOK 2025 UNCHANGED and stro
Slide 21: Appendix
APPENDIX 21
Slide 22: Currency impact on operating result
CURRENCY IMPACT ON OPERATING RESULT Currency impact on revenues and costs In € m -51 114 Revenues and costs per currency 62 FY 2024 REVENUES COSTS US dollar (and related US dollar Q1 2025 currencies) 25 30 Currency impact on revenues 55 20 70 Currency impact on costs, including hedging Euro Other Ot
Slide 23: Debt redemption profile at 31 March 2025
DEBT REDEMPTION PROFILE AT 31 MARCH 2025 Debt reimbursement profile(1) In €m 500 650 2,200 400 500 700 700 600 550 700 2025 2026 2027 2028 2029 2030 and beyond Bonds issued by Air France-KLM June 2026: May 2029: Other long-term Debt: AF and KLM Sustainability-Linked Bonds AFKL 3.875% (̴€300m, initia
Slide 24: Investor Relations department
Investor Relations department Michiel Klinkers Marouane Mami Michiel.klinkers@airfranceklm.com Marouane.mami@airfranceklm.com