Air France-klm Sa · EURONEXT:AF
Air France-klm Sa — FY2024 Earnings Presentation
33 slides from Air France-klm Sa's earnings presentation, February 2025
Slide 1: Full Year 2024 Results
FULL YEAR 2024 RESULTS
Slide 2: 2024 Highlights
2024 HIGHLIGHTS Benjamin Smith – Chief Executive Officer Air France-KLM 2
Slide 3: Q4 2024: Strong Finish of the Year
Passengers carried Group revenues Q4 2024: STRONG FINISH OF THE +5% +6% YEAR 23.5m €7.9bn 22.3m €7.4bn • Revenues up by 6% driven by capacity development, solid unit revenues and third-party maintenance • Operating result at €0.4bn, significantly up compared to 2023 on the back of a strong unit reve
Slide 4: Strong Focus on Execution to Deliver on Our Strategy
STRONG FOCUS ON EXECUTION TO DELIVER ON OUR STRATEGY 4
Slide 5: Our Sustainability Commitment and Progress Widely Recognized in 2024
OUR SUSTAINABILITY COMMITMENT AND PROGRESS WIDELY RECOGNIZED IN 2024 27% New Gen aircraft in fleet Air France- Gold medal KLM rated the Improvement Score B for recognition, Prime status highest from BB to Climate top 97th confirmed among its BBB ratings confirmed Our investments in new percentile pe
Slide 6: Another Year of Premium and Corporate Revenue Improvement
ANOTHER YEAR OF PREMIUM AND CORPORATE REVENUE IMPROVEMENT REVENUE MIX EVOLUTION Premium Revenue1: 2024 vs. 2023, % +12% increase vs. LY • Strong trend in Direct sales with Online Channel growing +29% vs. LY • All indirect channels outgrow LY revenue 25.6% 26.9% Total Revenue: +11% in Online Direct s
Slide 7: Strong Ancillary Revenue Growth Across All Airlines
STRONG ANCILLARY REVENUE GROWTH ACROSS ALL AIRLINES ANCILLARY REVENUE EVOLUTION1 2023, 2024 Double digit growth in Seat 2024 €1.1bn €0.6bn €1.7bn selection segment for all the airlines of the Group • +23% and +17% vs. LY in Seating +24% Segments of Air France and KLM respectively 2023 €1.0bn €0.4bn
Slide 8: All Our Businesses Continue to Contribute Significantly to the Group's Success
ALL OUR BUSINESSES CONTINUE TO CONTRIBUTE SIGNIFICANTLY TO THE GROUP’S SUCCESS ENGINEERING & MAINTENANCE • Implementation of Flying Blue • Strong external revenue growth, on Transavia, ensuring its reach far above market level across all Group airlines • Solid end of the year, due to • Major long-te
Slide 9: Financial Results
FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 9
Slide 10: Outstanding Q4 Performance Mitigating a Challenging FY2024
OUTSTANDING Q4 PERFORMANCE MITIGATING A CHALLENGING FY2024 Revenue Operating margin Operating result evolution +452m Q4 256 396 €7.9bn +6.4% 5.0% +5.8pt 433 21 296 December 2024 YoY December 2024 YoY -56 Q4 2023 Unit revenue Fuel price1 Unit cost2 Currency Q4 2024 operating result & other operating
Slide 11: Q4: Strong Load Factor Development and Positive Yield
Q4: STRONG LOAD FACTOR DEVELOPMENT AND POSITIVE YIELD FOR THE NORTH ATLANTIC, PREMIUM SEGMENT AND TRANSAVIA Q4 2024 vs Q4 2023 Total Long-Haul Short & Medium-Haul1 Transavia Total 88% 84% 86% 87% 9.1% 6.9% 2.2% 2.1 pt 2.1 pt 3.0% 2.4 pt 2.0 pt 0.3% 1.2% -0.2% -1.4% Premium1 North America Caribbean &
Slide 12: Q4: Unit Cost Up in Line with Unit Revenue Increase
Q4: UNIT COST UP IN LINE WITH UNIT REVENUE INCREASE Unit cost1 per ASK evolution In % year-over-year 4.4% 4.0% 1.0% 0.7% 1.2% 1.1% Labor cost Other Airport & Air Traffic Charges Unit revenue related cost Q4 2024 unit cost Q4 2024 Unit revenue Unit cost up 1.0% due to: • 1.0% related to unit revenue
Slide 13: Q4: Strong Revenue Growth and Profitability
Q4: STRONG REVENUE GROWTH AND PROFITABILITY CARGO AND TRANSAVIA BOOSTING GROUP UNIT REVENUE 1 Unit Revenue2 Revenues Operating result Operating Q4 2024 vs Q4 2023 Capacity Constant Curr. (€ m) Change (€ m) Change margin Change +1.5% +2.5% 5,922 +4.1% Network 432 +373m 6.5% +5.6 pt +0.8% +20.9% 722 +
Slide 14: Q4: Positive Operating Result Development for Both Airlines
Q4: POSITIVE OPERATING RESULT DEVELOPMENT FOR BOTH AIRLINES 2 2 2 Q4 2024 vs Q4 2023 Capacity Revenues Change Operating Change Operating Change change (€ m) YoY result YoY margin YoY (€ m) +2.0% 4,843 +6.3% 302 +324 6.3% +6.7 pt +2.5% 3,157 +5.4% 51 +69 1.6% +2.2 pt 1 207 44 21.3% +2.2% 7,878 +6.4%
Slide 15: FY 2024 Financial Results
FY 2024 FINANCIAL RESULTS Steven Zaat – Chief Financial Officer Air France-KLM 15
Slide 16: Transavia Shows First Results of Delivering on the Medium-Term Plan
TRANSAVIA SHOWS FIRST RESULTS OF DELIVERING ON THE MEDIUM-TERM PLAN 1 Unit Revenue2 Revenues Operating result Operating FY 2024 vs FY 2023 Capacity Constant Curr. (€ m) Change (€ m) Change margin Change +2.8% +0.4% 23,881 +3.2% Network 1,422 -271m 5.4% -1.2 pt 3 +1.8% -1.9% 2,391 -3.9% Transavia +8.
Slide 17: FY2024: Operating Result at €1.6bn Thanks to Strong Q4 Performance
FY2024: OPERATING RESULT AT €1.6BN THANKS TO STRONG Q4 PERFORMANCE FY 2024 vs FY 2023 Capacity Revenues Change 2 Operating Change 2 Operating Change 2 change (€ m) YoY result YoY margin YoY (€ m) +4.2% 19,221 +3.8% 980 -104 5.1% -0.8 pt +2.6% 12,710 +5.4% 416 -234 3.3% -2.1 pt 1 811 200 +189 24.7% +
Slide 18: FY 2024: Positive Free Cash Flow Generation Despite Headwinds
FY 2024: POSITIVE FREE CASH FLOW GENERATION DESPITE HEADWINDS FY 2024 Free cash flow evolution In € m Exceptionals: Leverage ratio (Net debt/EBITDA) 1.7x • €610m one-time payment to the Air France flight crew pension fund (CRPN) Cash at hand at • €485m deferred social charges and end December €9.4bn
Slide 19: Outlook
OUTLOOK Steven Zaat – Chief Financial Officer Air France-KLM 19
Slide 20: Yield Compensating Lower Load Factor Resulting in Positive Unit Revenue for Q1
YIELD COMPENSATING LOWER LOAD FACTOR (EASTER SHIFT) RESULTING IN POSITIVE UNIT REVENUE DEVELOPMENT FOR Q1 Long-Haul Short and Medium-Haul Transavia Q1 86% 85% 78% 76% 81% 80% 2024 2025 2024 2025 2024 2025 Forward booking load factor 2024 Forward booking load factor 2025 Snapshot of the 26th of Febru
Slide 21: Group Capacity Outlook 2025
GROUP CAPACITY OUTLOOK 2025 FY 2025 Long Haul +3-5% Short and Medium Haul +3-5% Transavia 10% Total +4-5% vs. 2024 21
Slide 22: KLM's 'Back on Track' Project on Track to Deliver €450M EBIT Improvement
KLM'S 'BACK ON TRACK’ PROJECT ON TRACK TO DELIVER €450M SHORT- TERM EBIT IMPROVEMENT AND EBIT MARGIN ABOVE 8% BY 2026-2028 Q4 2024 Q1 Q2 Q3 Q4 2025 Reduction of 250 office job positions in • Lower cost and improve labor productivity in 2025 by 5%, saving Increase productivity progress with works cou
Slide 23: 2025: At Least €300M EBIT Improvement Compared to 2024
2025: AT LEAST €300M EBIT IMPROVEMENT COMPARED TO 2024 • Lower capacity & higher Olympic Games impact on customer compensation + unit revenue (€200m) and + Air France Cargo impacted by = ~€600m due to operational the implementation of IT tool cost (€50m) Recovery from 2024 disruptions > €300 million
Slide 24: Total Fuel Bill Expected Below Last Year, with 62% Hedged
TOTAL FUEL BILL EXPECTED BELOW LAST YEAR, WITH 62% HEDGED SAF premium 170 330 cost (€m) 7,310 ~7,000 Fuel bill after hedge excl SAF ($m) FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Market Brent ($ per bbl) 80 76 73 72 71 73 price Jet fuel ($ per metric ton) 872 816 807 799 791 803 FY 2026 13% he
Slide 25: Low Single Digit Unit Cost Increase Expected in 2025
LOW SINGLE DIGIT UNIT COST1 INCREASE EXPECTED IN 2025 Driving up unit revenues • Airport & ATC ➢ Schiphol tariff up +41% in 2025 ➢ ADP tariff up +4% ➢ Air traffic control charges (Eurocontrol) Low single digit • Inflation including salary increase ➢ Air France 2025 Négociation Annuelle Obligatoire (
Slide 26: Outlook 2025
OUTLOOK 2025 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 In line with medium term target 1) At constant fuel price including SAF, constant currency and excluding Emission Trading
Slide 27: Update & Outlook
UPDATE & OUTLOOK Benjamin Smith – Chief Executive Officer Air France-KLM 27
Slide 28: Reaffirmed Outlook for the 2026-2028 Period
REAFFIRMED OUTLOOK FOR THE 2026-2028 PERIOD Adj. Operating free Operating margin Unit cost1 Leverage cash flow Significantly Reduction Investment grade Above 8% positive improve EBIT by ~€2bn by 2028 1) At constant fuel price including SAF, constant currency and excluding Emission Trading Scheme cos
Slide 29: To Conclude
TO CONCLUDE 2024: A YEAR OF RESILIENT GROWTH Strong finish, sustained revenue expansion despite operational and external challenges POSITIVE FREE CASH FLOW Achieved positive recurring adjusted FCF in 2024 despite headwinds OUTLOOK impacting operating margin Confident in executing the strategic roadm
Slide 30: Appendix
APPENDIX 30
Slide 31: Currency Impact on Operating Result
CURRENCY IMPACT ON OPERATING RESULT Currency impact on revenues and costs In € m -18 13 Revenues and costs per currency FY 2024 REVENUES COSTS -32 US dollar (and related US dollar Q4 2024 currencies) 25 30 Currency impact on revenues 55 20 70 Currency impact on costs, including hedging Euro Other Ot
Slide 32: Debt Redemption Profile at 31 December 2024
DEBT REDEMPTION PROFILE AT 31 DECEMBER 2024 Debt reimbursement profile(1) In €m 500 500 650 2,200 400 500 850 700 700 600 450 2025 2026 2027 2028 2029 2030 and beyond Bonds issued by Air France-KLM January 2025: Other long-term Debt: AF and KLM Sustainability-Linked Bonds December 2026: AFKL 1.875%
Slide 33: Investor Relations department
Investor Relations department Michiel Klinkers Marouane Mami Michiel.klinkers@airfranceklm.com Marouane.mami@airfranceklm.com