Q3 2024 Results Press Release
Q3 2024 Results Press Release . (MENAFN - GlobeNewsWire - Nasdaq) xx     THIRD QUARTER 2024     November 7, 2024     Operating result stable at –1.2 billion excluding Olympic Games impact    Underlying Group unit revenue trend ...
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THIRD QUARTER 2024

November 7, 2024

Operating result stable at €1.2 billion excluding Olympic Games impact

Underlying Group unit revenue trend favorable



Group capacity increased by 3.6% compared to last year with load factor at 89%

Group revenues at €9.0bn, up 3.7% compared to last year

Unit cost at +3.4% compared to 2023 due to continued higher cost levels for staff, operation and maintenance at KLM. Firm measures announced to structurally improve KLM's operational and financial performance

Operating result stood at €1,180m, with operating margin at 13.1%. Operating result equivalent to that of last year excluding Olympic Games unit revenue impact of €160m. One-time payment of €50m to Air France staff for successful operations during the event

9-months Recurring adjusted operating free cash flow at €23m

Cash at hand at €9bn and Net debt/EBITDA ratio of 1.7x Acquisition of a 19.9% non-controlling stake in the share capital of SAS AB successfully completed



Commenting on the results, Mr. Benjamin Smith, Group CEO , said:

“The third quarter revealed mixed trends for the Air France-KLM Group. Revenue continued to rise, driven by increased capacity and strong underlying demand. However, operating income was significantly affected by the Paris Olympic Games, impacting Air France as previously stated. At KLM, persistent cost challenges spiked higher than anticipated, putting pressure on parts of its business model and reinforcing the need for more concrete structural improvements. These measures are aligned with the Group's ongoing transformation efforts aimed at further enhancing overall performance.

Beyond their financial implications, the Olympic Games provided a unique platform to demonstrate the Group's operational expertise and capabilities while offering unparalleled visibility for France as a destination. In the long term, this will be advantageous for the Group.

We also made further progress in our decarbonization initiatives, as evidenced by the signing of a major Sustainable Aviation Fuel (SAF) purchase agreement with TotalEnergies. This contract, one of the largest ever signed by the Group, highlights our commitment to fostering the development of SAF supply chains, which is a crucial lever in reducing our carbon footprint.”

Q3 Group unit revenue broadly stable

Third Quarter Year to date 2024 change change

constant currency 2024 change change

constant currency Group Passengers (thousands) 27,855 +3.5% 74,470 +4.6% Group Capacity (ASK m) 87,795 +3.6% 241,861 +4.1% Traffic (RPK m) 78,367 +3.1% 212,570 +4.0% Group Passenger load factor 89.3% 87.9% Passenger unit revenue per ASK (€ cts) 8.78 -1.0% -0.8% 8.22 -0.2% +0.3%





Third Quarter Year to date 2024 change change

constant currency 2024 change change

constant currency Revenues (€m) 8,979 +3.7% +3.8% 23,582 +4.3% +4.7% EBITDA (€m) 1,896 -97 -65 3,241 -366 -271 Operating result (€m) 1,180 -162 -130 1,204 -565 -469 Operating margin (%) 13.1% 5.1% Net income (€m) 824 -122 510 -711 Group unit revenue per ASK (€cts) 9.32 -0.7% -0.6% 8.79 -1.1% -0.6% Group unit cost at constant fuel, constant currency and excluding ETS 7.97 +3.4% 8.29 +3.0%





30 September 2024 31 Dec 2023 Operating Free cash flow (€m) 28 Adj. recurring operating free cash flow* (€m) 23 Net Debt (€m) 6,698 5,041 EBITDA trailing 12 months (€m) 3,842 4,208 Net Debt/EBITDA ratio 1.7x 1.2x

*IFRS Operating free cash flow corrected from the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period and payment of lease debt and interests paid and received

Third Quarter 2024: Operating result at and stable underlying unit revenue performance

In the third quarter 2024, Air France-KLM welcomed 27.9 million passengers which is 3.5% above last year. As capacity increased by 3.6% and traffic grew by 3.1%, the load factor was broadly stable compared to last year at 89%.

The Group unit revenue per ASK was down -0.6% at constant currency compared to last year. Cargo unit revenues per ATK was up +6.3% against a constant currency. On the passenger side, less international inbound traffic to Paris and less travel from France as a consequence of the Olympic Games, resulted in €160 million less passenger unit revenue. Corrected for this impact, the Group unit revenue was 1.4% positive.

The operating result was €162 million below last year standing at €1,180 million and was impacted by the Olympic Games impact (€160 million), an increase of the ex-fuel unit costs (€230 million), the latter almost fully compensated by an increase of unit revenues (€113 million) and a decrease of fuel & ETS unit costs (€100 million).

The Group unit cost1 per ASK is up 3.4% versus last year and was above the outlook provided during the Q2 2024 results presentation (+2% year-over-year).

The initially estimated 2% unit cost increase is coming from higher flight related cost and higher salary cost due to collective labor agreements at Air France (impact as per April 2024) and KLM (impact as per Q4 2023), and a one-time payment of circa €50 million to Air France staff rewarding the strong operational performance during the Olympic Games.

The additional 1.4 point unit cost was caused by difficult summer operations, mainly at KLM and Transavia, resulting in higher disruption cost (€65 million), the impact of Crowdstrike €25 million and lower capacity at Transavia (-3%).

Cash

For the first nine months, the Group reported an operating cash flow of €28 million, impacted by a negative working capital coming from the deferrals. Inherited from the pandemic, these deferrals correspond to the previously guided one time pension payment of €610 million by Air France in January 2024 to the Caisse des Retraites des Personnels Navigants (CRPN) as well as the social charges and wages taxes amounting to circa €120 million per quarter.

The net capex amounted to €2.5 billion.

Recurring adjusted operating free cash flow excluding deferred social charges and wage taxes and including lease debt and net interest payment amounted to +€23 million.

The cash at hand at the end of September amounted to €9.0 billion, a decrease of €1.5 billion versus the end of 2023 mainly due to the payment of deferred pension, social charges and wages taxes inherited from the pandemic. Net Debt / EBITDA ratio stood at 1.7x, which is within our ambition of 1.5x to 2.0x.

On the first of July the Group redeemed fully the July 2021 €300 million bonds (coupon 3%).

Sustainability

Transition plan and trajectory

Since 2019, Air France-KLM has accelerated its environmental transition and has set ambitious sustainability performance targets to highlight its sustainability commitments. The Group's ambition is to reduce its greenhouse gas (GHG) emissions by 30% by 2030 compared to 2019 (gCO2eq/RTK). The Group aims to achieve this goal through a combination of fleet renewal, operational measures such as eco-piloting, and the incorporation of at least 10% of more sustainable aviation fuel on all its flights. These ambitious targets go beyond regulatory obligations.

Sustainability key performance measures:

Fleet Renewal : Air France-KLM is committed to renewing its fleet with more fuel-efficient and less noisy aircraft. By the end of September 2024, 24% of its fleet was composed of new-generation aircraft, compared to 19% end of September 2023. The Group plans to increase this ratio to 80% by 2030.

Compared to previous generation aircraft the A220 reduces CO2 emissions by 20%, the A320neo family by 15%, and the A350 by 25%.

Since the end of December 2023 the following new generation aircraft were phased in, eight A350, five A320 Neo, seven A321 Neo, of which the first delivery to KLM in the third quarter, and five A220. In the same period the following old generation1 aircraft were phased out, one 737-800, three A319, one A320 and one CRJ-1000.

30 September 2024 30 September 2023 Change New generation fleet2 24% 19% +5pt

More Sustainable Aviation Fuel (SAF) :

Air France-KLM and TotalEnergies have signed in September an off-take agreement for TotalEnergies to supply up to 1.5 million tons of more sustainable aviation fuel (SAF) to Air France-KLM Group airlines over a 10-year period, until 2035.

This agreement marks one the largest SAF purchase contracts signed by Air France-KLM to date. In 2022 and 2023, Air France-KLM was the world's leading SAF user, representing 17% and 16% of total global production respectively.

The Group adheres to a strict sourcing policy, committing to purchasing second generation SAF that do not compete with the human or animal food chain, that are RSB or ISCC+ certified for their sustainability, and that are not produced from palm oil and do not contribute to deforestation, and which reduce CO2 emissions by at least 65% over their entire lifecycle-from production to combustion-compared to fossil kerosene.

2024 outlook

Capacity

The Group expects its capacity in Available Seat Kilometers for Air France-KLM Group including Transavia to increase by 4% in 2024 compared to 2023.

Unit cost 3

For the full year 2024, the Group expects a unit cost increase of circa +3% compared to 2023 (previously +2%) as a consequence of the unit cost increase of +3.4% in the third quarter and higher than expected cost in Q4. Less capacity and additional maintenance cost on the component business, mainly at KLM led to this outlook revision. Firm measures announced to structurally improve KLM's operational and financial performance.

See for detailed information the unit cost slide in the outlook section of the results presentation.

Capex

Full year 2024 net capex expected to be at 3 billion euros (Previously below 3 billion euros) due to timing effects related to sale of assets which are expected to be executed in 2025.

2025: Proposed increase of the solidarity tax on flight tickets ('TSBA') in France would impact the Group's profitability and competitiveness

Currently discussed in the French Parliament for the 2025 budget, this increase of the aviation tax applicable to all flights departing from France would:



result in higher fares reducing accessibility of air travel

impact profitability due to limitation of price elasticity, preventing the full transfer of charges to customers

hamper our ability to deliver our sustainability trajectory without any benefit to the environment unless collected tax is allocated to the decarbonation of the aviation sector further reduce the competitiveness of France-based carriers and increase competitive distortion.

The Potential FY 2025 impact:



projected incremental tax of €280m €90m - €170m negative on the operating result

Schiphol Airport tariff increase as of April 2025

Schiphol airport recently announced a tariff increase of 41% as per April 2025. KLM Group estimates an EBIT impact in 2025 in the range of €65m - €110m.

Business review

Network result

Network

Third Quarter Year to date 2024 change change

constant currency 2024 change change

constant currency Traffic revenues (€m) 7,047 +1.8% 18,805 +1.6% Total revenues (€m) 7,351 +2.0% 19,646 +1.7% Salaries and related costs (€m) -1,723 +10.5% -5,002 +9.1% Aircraft fuel, excl. ETS (€m) -1,639 -1.5% -4,753 -0.3% Other operating expenses (€m) -2,552 +7.0% -7,367 +7.0% EBITDA (€m) 1,436 -10.1% 2,524 -18.0% Depreciation & Amortization (€m) -537 +5.9% -1,535 +6.2% Operating result (€m) 899 -192 -156 990 -644 -543 Operating margin (%) 12.2% -2.9 pt 5.0% -3.4 pt

Compared to the third quarter 2023, total revenues increased by +2.0% to €7,351 million. The operating result stood at €899 million which was €156 million below last year against a constant currency. The decrease is explained by lower passenger unit revenue, partly compensated by higher Cargo unit revenues and a lower fuel price, and high unit cost at KLM.

Passenger network unit revenue impacted by Olympic Games

Passenger network

Third Quarter Year to date 2024 change change

constant currency 2024 change change

constant currency Passengers (thousands) 20,499 +3.3% 56,261 +3.5% Capacity (ASK m) 73,465 +3.4% 206,270 +3.3% Traffic (RPK m) 65,526 +3.2% 180,744 +3.4% Load factor 89.2% 87.6% Total passenger revenues (€m) 6,783 +2.1% +2.3% 17,959 +2.9% +3.4% Traffic passenger revenues (€m) 6,576 +1.5% +1.6% 17,431 +2.5% +3.0% Unit revenue per ASK (€ cts) 8.95 -1.9% -1.8% 8.45 -0.8% -0.2%

During the third quarter 2024 capacity in Available Seat Kilometers (ASK) was 3.4% higher than last year. Traffic growth (+3.2%) was close to the capacity growth and has led to a broadly stable load factor at 89.2%. Yield corrected for currency decreased by -1.4% against a constant currency, resulting in a negative unit revenue per ASK development versus last year.

The passenger network unit revenues were impacted by the Olympic Games in Paris. The international markets showed a significant avoidance of Paris while travel between the city and other destinations was also below the usual summer average as residents in France postponed their holidays. Unit revenues declined by 1.8% against a constant currency compared to last year, although excluding the Olympic Games impact the passenger unit revenues would have been 0.1% positive.

Passengers who were avoiding destination Paris and the fewer travelers from Paris due to the Olympic Games were as much as possible replaced by transfer passenger, which had a negative impact on the yield. During the third quarter we observed therefore per region the following trends:

North Atlantic

Q3 capacity increased by 4% compared with last year while load factor remained broadly stable at 90% and yield decreased by 2.8%.

Latin America

Capacity was down 1.3% on the back of a high comparison basis while industry capacity is increasing. Load factor slightly decreased and reached 92% while yield reduced by 2.4% compared to significant high yields last year.

Asia & Middle East

Capacity in Q3 has significantly increased by 9% while load factor increased by 0.5% and reached 90%. Yield decreased by 7.4% mainly driven by high competition from Chinese carriers and demand still lagging behind in Japan and China compared to pre-covid levels.

Caribbean & Indian Ocean

After Capacity decreases in the previous quarter, this quarter the capacity increased by 3.2%. Load factor decreased by 2.3 points while yield remained broadly stable (-0.5%).

Africa

Strong yields on late bookings resulted in a yield increase of 1.2% while load factor (+0.9 point) benefited from a lower capacity (-4.3%) than last year.

Short and Medium-haul

Positive developments on capacity, yield and load factor in Europe. Despite the capacity increase by 1%, the yield increased by 0.5% and the load factor by 0.6 point.

Cargo: Strong Q3 Unit revenues

Cargo business

Third Quarter Year to date 2024 change change

constant currency 2024 change change

constant currency Tons (thousands) 226 +3.5% 661 +3.3% Capacity (ATK m) 3,707 +1.5% 10,724 +2.1% Traffic (RTK m) 1,687 +3.1% 4,936 +3.3% Load factor 45.5% 46.0% Total Cargo revenues (€m) 561 +0.6% +1.1% 1,669 -9.2% -8.3% Traffic Cargo revenues (€m) 471 +7.3% +7.7% 1,374 -8.5% -7.7% Unit revenue per ATK (€cts) 12.74 +5.9% +6.3% 12.83 -10.4% -9.6%

During the third quarter 2024 capacity in Available Ton Kilometers (ATK) was +1.5% higher than last year. Traffic growth (+3.1%) was above the capacity growth and has led to an increase of the load factor reaching 45.5%. Yield corrected for currency increased by +4.5% against a constant currency, resulting in an increase of unit revenue per ASK at constant currency of 6.3%.

Today's air freight market is dynamic and Asia in particular is performing well driven by e-commerce and the Red sea disruption. In response to market dynamics, a part of the Group's full freighter capacity is being redeployed to Asia.

Transavia: Q3 Operating margin improvement despite Olympic Games impact

Transavia

Third Quarter Year to date 2024 change 2024 change Passengers (thousands) 7,356 +4.1% 18,208 +8.0% Capacity (ASK m) 14,330 +4.5% 35,591 +8.7% Traffic (RPK m) 12,841 +2.7% 31,826 +7.4% Load factor 89.6% 89.4% Unit revenue per ASK (€cts) 7.93 +5.0% 6.90 +5.3% Unit cost per ASK (€cts) 6.35 +2.9% 6.65 +2.4% Total Passenger revenues (€m) 1,118 +10.3% 2,424 +15.2% Salaries and related costs (€m) -198 +19.0% -543 +16.9% Aircraft fuel, excl. ETS (€m) -238 -6.4% -608 +2.5% Other operating expenses (€m) -383 +16.9% -968 +15.1% EBITDA (€m) 300 +12.6% 305 +48.5% Depreciation & Amortization (in €m) -75 -4.6% -219 +15.8% Operating result (€m) 225 +37 86 +70 Operating margin (%) 20.1% 3.6%



Despite Transavia's capacity increase in available seat kilometers of 4.5%, unit revenue increased by +5.0% while the load factor slightly decreased. The implementation in the second quarter of the paid hand luggage initiative bore also fruits in the third quarter and brought more than €20 million revenues this quarter.

The operating result amounted to €225 million compared to €188 million last year driven by higher revenues. The impact of the Olympic Games on Transavia France in July and August was circa €35 million.

In the first nine months Transavia's operating result increased by €70 million to €86 million, underlining that route maturity, dynamic pricing ancillaries and Flying Blue features improvement are paying off.

Maintenance business: Third party revenues continue to grow

Maintenance

Third Quarter Year to date 2024 Change 2024 Change Total Revenues (€m) 1,232 +17.0% 3,657 +20.5% o/w Third party revenues (€m) 507 +16.0% 1,508 +26.6% External expenses (€m) -776 +16.1% -2,378 +23.3% Salaries and related costs (€m) -289 +10.2% -879 +10.7% EBITDA (€m) 167 +36.0% 400 +28.6% Depreciation & Amortization (€m) -110 +82.5% -276 +48.5% Operating result (€m) 58 -5 123 -1 Operating margin (%) 4.7% 3.4%

The maintenance segment continued its growth in the third quarter 2024. Third party revenues increased by +16.0%, showing a strong recovery especially on the engine side, which was in line with the increase in total revenues of 17.0%. During the third quarter, the supply chain disruptions were still strongly impacting the operations resulting in higher cost and loans on components.

The operating margin stood at 4.7%, which is 1.3 point lower than in 2023.

Air France's Q3 performance improved compared to last year excluding Olympic Games impact

Air France Group

Third Quarter Year to date 2024 change 2024 change Revenue (in €m) 5,543 +3.1% 14,377 +2.9% Salaries and related costs (in €m) -1,418 +9.4% -4,044 +9.2% Aircraft fuel, excl. ETS (in €m) -1,150 -1.0% -3,207 -0.1% Other operating expenses (in €m) -1,793 +5.0% -5,173 +8.1% EBITDA (in €m) 1,183 -26 1,954 -313 Depreciation & Amortization (in €m) -451 +12.0% -1,276 +10.0% Operating result* (in €m) 732 -74 678 -429 Operating margin (%) 13.2% 4.7%

*Airlines 2023 results were still including Flying Blue figures, resulting in a negative impact in the change columns

The operating result stood at €732 million which was €74 million below last year, mainly driven by the unit revenue impact of the Olympic Games in July and August (€160m), a one-time payment of €50m to Air France staff for the successful operations during the event and Flying Blue results included in last year (presented separately since 2024).

KLM unit revenue improvement more than offset by unit cost development

KLM Group



Third Quarter Year to date 2024 change 2024 change Revenue (in €m) 3,549 +3.6% 9,553 +5.5% Salaries and related costs (in €m) -973 +15.0% -2,936 +13.0% Aircraft fuel, excl. ETS (in €m) -728 -3.8% -2,156 -0.1% Other operating expenses (in €m) -1,189 +14.7% -3,336 +12.8% EBITDA (in €m) 660 -127 1,125 -220 Depreciation & Amortization (in €m) -264 6.6% -760 +12.2% Operating result* (in €m) 396 -143 365 -303 Operating margin (%) 11.1% 3.8%

*Airlines 2023 results were still including Flying Blue figures, resulting in a negative impact in the change columns

Third quarter revenues grew by +3.6% while the cost increase outpaced the revenues significantly, driven by an increase of salary cost. Last year, during the third quarter no salary increases related to the current CLA were implemented yet, which explains, next to the growth in FTE's, the current increase in salary cost. Flight related cost and maintenance cost contributed as well to the year-over-year 8.4% increase in the cost per available seat kilometer. The capacity increase for the KLM Group was only +0.2% due to pilots shortage and maintenance issues.

As a reaction on the rising costs, KLM announced in October firm measures to structurally improve the company's operational and financial performance. These measures focus on increasing productivity and simplifying the organization, cutting costs and deferring or postponing investments. These interventions are made necessary by the rising cost of equipment, staff and airport fees. Furthermore, KLM is engaged in an extensive fleet renewal - a multi-billion dollar investment aimed at cleaner, quieter and more fuel-efficient flying.

KLM's 'Back on Track' targets a €450m short-term EBIT improvement and EBIT Margin above 8% by 2026-2028 via:



Increasing labour productivity by at least 5% by 2025, including through automation, mechanization and reducing absenteeism.

Resolve the impact of the pilot shortage and ensure that KLM can operate all flights with its pilots, with a better balance between intercontinental and European flights.

Due to the shortage of technicians and ongoing supply problems of parts, KLM can operate fewer flights. Measures are being taken at Engineering & Maintenance to reduce the number of cancellations.

Improvement of existing, and introduction of new products on board. Trials are underway with an expanded catering offer and optimization of aircraft layout, aimed at increasing revenues by at least €100 million a year.

Measures to simplify the organisation, achieve more synergy, get rid of overlap and overhead. One example is the planned reorganization of flight services and training organizations. Finally, KLM will explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations.

For KLM Catering Services (KCS) KLM is exploring strategic options to make KCS future proof as investment in KCS is imminent. Any strategic option needs to ensure cost efficiency, maintaining operational control, assure the quality for passengers and supporting KLM's sustainability and personalized catering goals.

Continued momentum for Flying Blue Miles

Flying Blue Miles



Third Quarter Year to date 2024 change 2024 change Revenue (in €m) 200 n.a. 604 n.a. Operating result (in €m) 55 n.a. 156 n.a. Operating margin (%) 27.5% n.a. 25.8% n.a.

In the third quarter Flying Blue miles generated €200 millions of total revenue, including third party airline and non-airline partners. The operating margin stood at 27.5%.

Flying Blue steadily attracts new members, benefiting from a good momentum of the commercial partnerships.

Nb: Sum of individual airline and Flying Blue results does not add up to AF-KLM total due to intercompany eliminations at Group level.

******

The results presentation is available at on November 7, 2024 from 8:15 am CET.

A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on November 7, 2024 at 09.30 am CET.

To connect to the webcast, please use below link:

Investor Relations Press Office Michiel Klinkers Marouane Mami +33 1 41 56 56 00 ... ... ...

Income statement

Third Quarter Year to date in € million 2024 2023 Variation 2024 2023 Variation restated * Revenues from ordinary activities 8,979 8,660 4 % 23,582 22,612 4 % Aircraft fuel -1,878 -1,918 -2 % -5,363 -5,360 0 % Carbon emission -66 -57 16 % -191 -139 37 % Chartering costs -133 -167 -20 % -380 -410 -7 % Landing fees and air routes charges -569 -539 6 % -1,545 -1,458 6 % Catering -253 -225 12 % -686 -618 11 % Handling charges and other operating costs -560 -499 12 % -1,534 -1,393 10 % Aircraft maintenance costs -781 -585 34 % -2,379 -1,831 30 % Commercial and distribution costs -256 -268 -4 % -810 -785 3 % Other external expenses -495 -464 7 % -1,488 -1,377 8 % Salaries and related costs -2,401 -2,146 12 % -6,997 -6,311 11 % Taxes other than income taxes -41 -40 2 % -137 -133 3 % Capitalized production 301 224 34 % 1,029 758 36 % Other income and expenses 49 17 188 % 140 52 169 % EBITDA 1,896 1,993 -5 % 3,241 3,607 -10 % Amortization, depreciation and provisions -716 -651 10 % -2,037 -1,838 11 % Income from current operations 1,180 1,342 -12 % 1,204 1,769 -32 % Sales of aircraft equipment 10 5 100 % 25 33 -24 % Other non current income and expenses – -3 -100 % -118 11 nm Income from operating activities 1,190 1,344 -11 % 1,111 1,813 -39 % Interests expenses -157 -148 6 % -471 -443 6 % Income from cash & cash equivalent 67 67 0 % 236 176 34 % Net cost of financial debt -90 -81 11 % -235 -267 -12 % Other financial income and expenses 14 -168 nm -198 -156 27 % Income before tax 1,114 1,095 2 % 678 1,390 -51 % Income taxes -300 -155 94 % -181 -176 3 % Net income of consolidated companies 814 940 -13 % 497 1,214 -59 % Share of profits (losses) of associates 10 6 67 % 13 7 86 % Net Income for the period 824 946 -13 % 510 1,221 -58 % Net income - Non controlling interests 44 15 193 % 130 31 nm Net income - Group part 780 931 -16 % 380 1,190 -68 %

Consolidated balance sheet

Assets September 30, 2024 December 31, 2023 (in € million) Goodwill 224 224 Intangible assets 1,132 1,128 Flight equipment 12,607 11,501 Other property, plant and equipment 1,500 1,431 Right-of-use assets 6,652 5,956 Investments in equity associates 240 129 Pension assets 85 45 Other non-current financial assets 1,290 1,262 Non-current derivatives financial assets 115 148 Deferred tax assets 643 698 Other non-current assets 151 153 Total non-current assets 24,639 22,675 Other current financial assets 1,155 1,292 Current derivatives financial assets 46 122 Inventories 948 853 Trade receivables 2,219 2,152 Other current assets 1,261 1,120 Cash and cash equivalents 4,553 6,194 Assets held for sale 77 82 Total current assets 10,259 11,815 Total assets 34,898 34,490





Liabilities and equity September 30, 2024 December 31, 2023 (in € million) Issued capital 263 263 Additional paid-in capital 7,560 7,560 Treasury shares -24 -25 Perpetual 1,065 1,076 Reserves and retained earnings -10,585 -10,925 Equity attributable to equity holders of Air France-KLM -1,721 -2,051 Perpetual 2,584 2,524 Reserves and retained earnings 31 27 Equity attributable Non-controlling interests 2,615 2,551 Total equity 894 500 Pension provisions 1,678 1,685 Non-current return obligation liability and other provisions 4,007 3,805 Non-current financial liabilities 7,024 7,538 Non-current lease debt 4,034 3,581 Non-current derivatives financial liabilities 86 56 Deferred tax liabilities 7 - Other non-current liabilities 1,028 1,376 Total non-current liabilities 17,864 18,041 Current return obligation liability and other provisions 1,050 1,079 Current financial liabilities 1,577 1,664 Current lease debt 875 848 Current derivatives financial liabilities 312 139 Trade payables 2,547 2,447 Deferred revenue on ticket sales 4,345 3,858 Frequent flyer programs 886 899 Other current liabilities 4,547 5,002 Bank overdrafts 1 13 Total current liabilities 16,140 15,949 Total equity and liabilities 34,898 34,490

Statement of Consolidated Cash Flows from January 1 until September 30

Period from January 1 to September 30 2024 2023 (in € million) restated* Net income 510 1,221 Amortization, depreciation and operating provisions 2,037 1,839 Financial provisions 212 157 Cost of net debt 235 267 Loss (gain) on disposals of tangible and intangible assets -31 -54 Loss (gain) on disposals of subsidiaries and associates -2 – Derivatives – non monetary result 19 -6 Unrealized foreign exchange gains and losses, net -97 24 Share of (profits) losses of associates -13 -7 Deferred taxes 99 78 Impairment – 2 Other non-monetary items 21 -42 Cash flow from operating activities before change in working capital 2,990 3,479 (Increase) / decrease in inventories -106 -81 (Increase) / decrease in trade receivables -44 -491 Increase / (decrease) in trade payables 102 324 Increase / (decrease) in advanced ticket sales 476 608 Change in other assets and liabilities -850 27 Change in working capital requirement -422 387 CASH-FLOW FROM OPERATING ACTIVITIES 2,568 3,866 Acquisition of subsidiaries, of shares in non-controlled entities -92 -2 Proceeds on disposal of subsidiaries, of shares in non-controlled entities 8 – Purchase of property plant and equipment and intangible assets -2,931 -2,280 Proceeds on disposal of property plant and equipment and intangible assets 391 276 Interest received 221 151 Dividends received 2 3 Decrease (increase) in net investments, more than 3 months 137 112 Acquisition of warrants – -12 CASH-FLOW USED IN INVESTING ACTIVITIES -2,264 -1,752 Increase of equity paid by non controlling interests – 2 Payments to acquire treasury shares – -1 Purchase of minority interest without change of control -1 – Issuance of perpetual – 1,226 Repayment on perpetual – -595 Coupon on perpetual -131 -87 Issuance of debt 1,147 1,798 Repayment on debt -1,715 -3,116 Payments on lease debts -666 -625 New loans -103 -298 Repayment on loans 65 127 Interest paid -532 -582 Dividends paid -1 -90 CASH-FLOW FROM FINANCING ACTIVITIES -1,937 -2,241 Effect of exchange rate and reclassification on cash and cash equivalents (net of cash acquired or sold) 4 -16 Change in cash and cash equivalents and bank overdrafts -1,629 -143 Cash and cash equivalents and bank overdrafts at beginning of period 6,181 6,623 Cash and cash equivalents and bank overdrafts at end of period 4,552 6,480

*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities

Net debt



(in € million) September 30, 2024 December 31, 2023 Current and non-current financial liabilities 8,601 9,202 Current and non-current lease debt 4,909 4,429 Accrued interest -100 -138 Deposits related to financial liabilities -100 -107 Deposits related to lease debt -93 -100 Derivatives impact on debt 5 -1 Gross financial liabilities (I) 13,222 13,285 Cash and cash equivalent 4,553 6,194 Marketable securities > 3 months 962 1,097 Bonds 1,010 966 Bank overdrafts -1 -13 Net cash (II) 6,524 8,244 Net debt (I-II) 6,698 5,041

Recurring adjusted operating free cash flow

Third Quarter Year to date 2024 2023 2024 2023 (in € million) restated * restated * Net cash flow from operating activities 918 636 2,568 3,866 Purchase of property plant and equipment and intangible assets -864 -884 -2,931 -2,280 Proceeds on disposal of property plant and equipment and intangible assets 18 65 391 276 Operating free cash flow 72 -183 28 1,862 Exceptional payments made/(received) (1) 122 104 972 223 Interest paid and received -81 -47 -311 -431 Payments on lease debts -224 -204 -666 -625 Recurring adjusted operating free cash flow -111 -330 23 1,029

*Restated figures include the change in presentation for the reclassification of interest received and paid from cash flow from operating activities to respectively cash flow from investing activities and cash flow from financing activities

(1) Exceptional payments made/(received), restated from operating free cash flow for the calculation of recurring operating free cash flow adjusted, correspond to the repayment of deferred social charges, pensions contributions and wage taxes granted during the Covid period.

Return on capital employed (ROCE)

In € million Sep 30, 2024 Jun 30,

2024 Mar 31,

2024 Dec 31,

2023 Sept 30, 2023 Jun 30,

2023 Mar 31,

2023 Dec 31,

2022 restated 4 restated (1) restated (1) Goodwill and intangible assets 1,356 1,354 1,349 1,352 1,331 1,339 1,351 1,352 Flight equipment 12,607 12,197 11,646 11,501 11,296 10,957 10,954 10,614 Other property, plant and equipment 1,500 1,456 1,438 1,431 1,379 1,389 1,372 1,375 Right of use assets 6,652 6,479 5,902 5,956 5,596 5,480 5,304 5,428 Investments in equity associates 240 134 134 129 127 121 122 120 Financial assets excluding marketable securities, accrued interests and financial deposits 218 211 214 219 191 190 169 169 Provisions, excluding pension, cargo litigation and restructuring -4,553 -4,700 -4,523 -4,346 -4,481 -4,248 -4,255 -4,347 WCR2 -7,422 -8,222 -8,284 -6,981 -7,804 -8,917 -8,696 -7,213 Capital employed 10,598 8,909 7,876 9,261 7,635 6,311 6,321 7,498 Average capital employed (A) 9,161 6,941 Adjusted results from current operations 1,148 1,902 - Dividends received -1 -2 - Share of profits (losses) of associates 13 18 - Normative income tax -300 -495 Adjusted result from current operations after tax (B) 860 1,423 ROCE, trailing 12 months (B/A) 9.4% 20.5%

Unit cost: net cost per ASK

Third Quarter Year to date 2024 2023 2024 2023 Total operating expenses (in €m) 7,798 7,317 22,377 20,844 Carbon emission (ETS) -66 -57 -191 -139 Total other revenues (in €m) -795 -704 -2,320 -1,961 Net cost (in €m) 6,937 6,556 19,866 18,744 Capacity produced, reported in ASK 87,811 84,754 241,903 232,481 Net cost per ASK (in € cents per ASK) 7.90 7.74 8.21 8.06 Gross change 2.2 % 2.1 % Currency effect on net costs (in €m) 21 -4 Change at constant currency 1.9 % 2.1 % Fuel price effect (in €m) -102 -208 Net cost per ASK at constant currency, constant fuel price and excluding ETS (in € cents per ASK) 7.98 7.71 8.21 7.97 Change at constant currency and constant fuel price excluding ETS 3.4 % 3.0 %

Unit cost per ASK excluding fuel and ETS vs Q3 2023: +5.3% and vs 9m 2023: +4.1%

Definition: Unit cost = (total operating expenses - fuel - carbon emission - total other revenues) / Group Capacity in ASK

Group fleet at 30 September 2024

Aircraft type AF

(incl. HOP) 5 KL

(incl. KLC & MP) Transavia Owned Finance lease Operating lease Total In operation Change / 31/12/23 B777-300 43 16 21 14 24 59 59 B777-200 18 15 28 2 3 33 33 B787-9 10 13 4 7 12 23 23 B787-10 10 1 9 10 10 A380-800 3 2 1 3 A350-900 35 4 12 19 35 35 9 A330-300 5 5 5 5 A330-200 15 6 12 9 21 21 Total Long-Haul 124 65 0 72 44 73 189 186 9 B737-900 5 5 5 5 B737-800 31 110 36 8 97 141 141 B737-700 6 4 7 3 10 10 A321NEO 2 6 3 5 8 8 7 A321 15 8 7 15 15 A320 36 4 3 29 36 36 -1 A320NEO 6 6 6 6 6 A319 10 6 4 10 10 -3 A318 6 4 2 6 6 A220-300 37 24 2 11 37 37 5 Total Medium-Haul 104 44 126 97 13 164 274 274 14 Canadair Jet 1000 1 1 1 Embraer 195 E2 18 18 18 15 -3 Embraer 190 23 28 17 4 30 51 50 Embraer 175 17 3 14 17 17 Embraer 170 13 10 3 13 13 Total Regional 37 63 0 31 18 51 100 95 -3 B747-400ERF 3 3 3 3 B747-400BCF 1 1 1 1 B777-F 2 2 2 2 Total Cargo 2 4 0 4 0 2 6 6 0 Total 267 176 126 204 75 290 569 561 20

2024 TRAFFIC

Passenger network activity

Third Quarter Year to date Total network airlines 2024 2023 variation 2024 2023 variation Passengers carried ('000s) 20,499 19,836 +3.3% 56,261 54,366 +3.5% Revenue pax-kilometers (m RPK) 65,526 63,511 +3.2% 180,744 174,778 +3.4% Available seat-kilometers (m ASK) 73,465 71,028 +3.4% 206,270 199,689 +3.3% Load factor (%) 89.2% 89.4% 87.6% 87.5% Long-haul Passengers carried ('000s) 7,192 6,936 +3.7% 19,910 19,245 +3.5% Revenue pax-kilometers (m RPK) 53,328 51,516 +3.5% 148,658 143,395 +3.7% Available seat-kilometers (m ASK) 59,185 56,883 +4.0% 168,131 162,204 +3.7% Load factor (%) 90.1% 90.6% 88.4% 88.4% 0.0pt North America Passengers carried ('000s) 2,898 2,731 +6.1% 7,367 6,975 +5.6% Revenue pax-kilometers (m RPK) 20,394 19,270 +5.8% 52,156 49,577 +5.2% Available seat-kilometers (m ASK) 22,647 21,278 +6.4% 59,461 56,371 +5.5% Load factor (%) 90.1% 90.6% 87.7% 87.9% Latin America Passengers carried ('000s) 859 878 -2.2% 2,543 2,630 -3.3% Revenue pax-kilometers (m RPK) 8,131 8,355 -2.7% 24,168 24,978 -3.2% Available seat-kilometers (m ASK) 8,867 8,984 -1.3% 26,710 27,476 -2.8% Load factor (%) 91.7% 93.0% 90.5% 90.9% Asia / Middle East Passengers carried ('000s) 1,510 1,392 +8.5% 4,530 3,877 +16.8% Revenue pax-kilometers (m RPK) 12,119 11,017 +10.0% 35,927 30,246 +18.8% Available seat-kilometers (m ASK) 13,400 12,244 +9.4% 40,546 34,407 +17.8% Load factor (%) 90.4% 90.0% 88.6% 87.9% Africa Passengers carried ('000s) 1,060 1,089 -2.7% 2,961 3,124 -5.2% Revenue pax-kilometers (m RPK) 6,469 6,697 -3.4% 18,264 19,177 -4.8% Available seat-kilometers (m ASK) 7,211 7,538 -4.3% 21,126 22,277 -5.2% Load factor (%) 89.7% 88.8% 86.5% 86.1% Caribbean / Indian Ocean Passengers carried ('000s) 866 846 +2.4% 2,509 2,639 -4.9% Revenue pax-kilometers (m RPK) 6,214 6,177 +0.6% 18,143 19,417 -6.6% Available seat-kilometers (m ASK) 7,060 6,839 +3.2% 20,288 21,673 -6.4% Load factor (%) 88.0% 90.3% 89.4% 89.6% Short and Medium-haul Passengers carried ('000s) 13,306 12,900 +3.2% 36,351 35,121 +3.5% Revenue pax-kilometers (m RPK) 12,198 11,995 +1.7% 32,086 31,383 +2.2% Available seat-kilometers (m ASK) 14,280 14,145 +1.0% 38,139 37,485 +1.7% Load factor (%) 85.4% 84.8% 84.1% 83.7%

Transavia activity

Third quarter Year to date Transavia 2024 2023 variation 2024 2023 variation Passengers carried ('000s) 7,356 7,068 +4.1% 18,208 16,853 +8.0% Revenue seat-kilometers (m RSK) 12,841 12,502 +2.7% 31,826 29,637 +7.4% Available seat-kilometers (m ASK) 14,330 13,716 +4.5% 35,591 32,753 +8.7% Load factor (%) 89.6% 91.2% 89.4% 90.5%

Total Group passenger activity

Third quarter Year to date Total Group 2024 2023 variation 2024 2023 variation Passengers carried ('000s) 27,855 26,904 +3.5% 74,470 71,218 +4.6% Revenue pax-kilometers (m RPK) 78,367 76,013 +3.1% 212,570 204,415 +4.0% Available seat-kilometers (m ASK) 87,795 84,744 +3.6% 241,861 232,442 +4.1% Load factor (%) 89.3% 89.7% 87.9% 87.9%

Cargo activity

Third quarter Year to date Cargo 2024 2023 variation 2024 2023 variation Revenue tonne-km (m RTK) 1,687 1,636 +3.1% 4,936 4,779 +3.3% Available tonne-km (m ATK) 3,707 3,654 +1.5% 10,724 10,501 +2.1% Load factor (%) 45.5% 44.8% 46.0% 45.5%

Air France activity

Third quarter Year to date Total Passenger network activity 2024 2023 variation 2024 2023 variation Passengers carried ('000s) 11,670 11,455 +1.9% 31,502 31,744 -0.8% Revenue pax-kilometers (m RPK) 40,441 38,677 +4.6% 108,966 105,074 +3.7% Available seat-kilometers (m ASK) 45,788 43,366 +5.6% 125,000 120,074 +4.1% Load factor (%) 88.3% 89.2% 87.2% 87.5% Long-haul Passengers carried ('000s) 4,671 4,382 +6.6% 12,625 11,967 +5.5% Revenue pax-kilometers (m RPK) 33,789 31,854 +6.1% 91,950 87,001 +5.7% Available seat-kilometers (m ASK) 37,859 35,352 +7.1% 104,630 98,517 +6.2% Load factor (%) 89.2% 90.1% 87.9% 88.3% Short and Medium-haul Passengers carried ('000s) 6,999 7,073 -1.1% 18,877 19,778 -4.6% Revenue pax-kilometers (m RPK) 6,652 6,823 -2.5% 17,016 18,073 -5.8% Available seat-kilometers (m ASK) 7,929 8,014 -1.1% 20,371 21,556 -5.5% Load factor (%) 83.9% 85.1% 83.5% 83.8% Cargo activity Revenue tonne-km (m RTK) 839 818 +2.5% 2,445 2,397 +2.0% Available tonne-km (m ATK) 2,190 2,101 +4.2% 6,210 5,940 +4.6% Load factor (%) 38.3% 39.0% 39.4% 40.4%

KLM activity

Third quarter Year to date Total Passenger network activity 2024 2023 variation 2024 2023 variation Passengers carried ('000s) 8,829 8,380 +5.4% 24,759 22,621 +9.5% Revenue pax-kilometers (m RPK) 25,084 24,836 +1.0% 71,777 69,705 +3.0% Available seat-kilometers (m ASK) 27,677 27,660 +0.1% 81,271 79,614 +2.1% Load factor (%) 90.6% 89.8% 88.3% 87.6% Long-haul Passengers carried ('000s) 2,522 2,554 -1.3% 7,285 7,278 +0.1% Revenue pax-kilometers (m RPK) 19,538 19,664 -0.6% 56,708 56,395 +0.6% Available seat-kilometers (m ASK) 21,326 21,529 -0.9% 63,502 63,686 -0.3% Load factor (%) 91.6% 91.3% 89.3% 88.6% Short and Medium-haul Passengers carried ('000s) 6,307 5,827 +8.3% 17,474 15,343 +13.9% Revenue pax-kilometers (m RPK) 5,546 5,172 +7.2% 15,070 13,310 +13.2% Available seat-kilometers (m ASK) 6,352 6,131 +3.6% 17,769 15,928 +11.6% Load factor (%) 87.3% 84.4% 84.8% 83.6% Cargo activity Revenue tonne-km (m RTK) 848 818 +3.8% 2,491 2,382 +4.6% Available tonne-km (m ATK) 1,517 1,553 -2.3% 4,514 4,561 -1.0% Load factor (%) 55.9% 52.6% 55.2% 52.2%





1 at constant fuel, constant currency and excluding ETS

1 One A380 which was phased out from operation in 2020, was sold this quarter 2New generation fleet / Fleet in operation

3 against a constant fuel price, constant currency and excluding Emission Trading Scheme cost (ETS)

1 Compared with previous periods, working capital has been restated to exclude the deferral of social and fiscal charges granted following the Covid.

2 Excluding the report of social & fiscal charges granted consequently to Covid.

5 Excluding Transavia

Attachment

Q3 2024 - AFKLM - Press release
Jordania
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https://menafn.com/1108859988/Q3-2024-Results-Press-Release
2024-11-07
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(MENAFN - GlobeNewsWire - Nasdaq) xx     THIRD QUARTER 2024     November 7, 2024     Operating result stable at –1.2 billion excluding Olympic Games impact    Underlying Group unit revenue trend ...
Q3 2024 Results Press Release