Air France-Klm Ads (AFLYY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to the Air France KLM first quarter 2025 results presentation. Today's conference is being recorded. At this time, I would like to turn the conference over to Ben Smith, CEO, and Stephen Zat, CFO. Please go ahead, sirs. Okay, thank you, operator. Good morning, everyone, and thank you for joining us today for the presentation of Air France KLM's results for the first quarter of 2025. Today I'm joined by Stephen Zad, our group CFO. We'll start by covering the key highlights of the quarter before I hand it over to Stephen, who will walk you through the detailed financial results. And then I'll close with an overview of our medium-term ambitions before opening the floor to your questions. So moving to slide three. So we're very proud to report that the group delivered an improved performance this quarter, once again demonstrating the resilience and strength of our business model. Revenues were up 8% year over year, driven by a solid performance across all our activities, including maintenance. Our operating result improved by €161 million, reaching a negative €328 million, a significant step forward compared to the same period last year. Supported by strong unit revenue, development, a more favorable fuel price environment, and an overall improvement in operational performance. I've got to apologize for perhaps some background noise. The building next door is under heavy travel work, so hopefully you can hear us clearly. Our net debt to EBITDA ratio now stands at 1.6 times, fully aligned with our midterm ambition range of 1.5 times to 2.0 times. Importantly, we generated a positive recurring adjusted operating free cash flow of 0.8 billion euros, highlighting the robustness of our cash generation capabilities even during the seasonally weakest qu...