Air France-KLM reports on the first quarter

Air France-KLM Group issued this report on the first quarter 2020:

Operating result at -815 million euros, strongly impacted by the Covid-19 crisis

A strong performance at the start of the year with passenger unit revenue up +0.8% end of February 2020. March 2020 however was strongly impacted by the expansion of the virus and consequential globally imposed travel restrictions to counter the spread of the Covid-19 virus. This influenced negatively the first quarter 2020 results:

  •   Revenue at 5,020 million euros, down 922 million compared to last year
  •   Unit cost at constant currency and fuel reduced by 1.6% end of February 2020, and then up 3.5%

    end of March 2020

  •   Operating result at -815 million euros, down 529 million euros compared to last year, entirely

    caused by March 2020 with an operating result at -560 million euros1

  •   Net income at -1,801 million euros, including Covid-19 related over hedging -455 million euros,

    release of deferred tax assets -173 million euros and impairment of Boeing 747 aircraft -21 million


  •   Net debt/EBITDA ratio at 1.8x, compared to 1.5x at the end of 2019


  •   Implementation of the highest sanitary safety standards for frontline operation staff, crew and customers to counter virus transmission risks. The Group operated special flights for repatriation of citizens, setup of an “air bridge” fore essential medical supplies, in close cooperation with the French and Dutch governments and is maintaining the essential links with territories
  •   Swift adjustments in network and capacity, March 2020 capacity down 35% and around 95% of planned capacity to be suspended for the second quarter 2020
  •   Quick and effective cash protection measures implemented, costs reduced by 500 million euros on 2020, Capex reduced to 2.4 billion euros for 2020 and positive impact of partial activity implementation and crew variable pay reduction estimated at 350 million euros per month in the second quarter 2020
  •   Liquidity injections of 7 billion euros benefiting to Air France through a bank loan guaranteed by the French state and a direct shareholder loan from the French state. Ongoing discussions with the Dutch state concerning KLM support
  •   As an integral part of the financing packages the Group will build a new transformation plan to ensure economic and financial sustainability over the medium and long term with integration of new ambitious environmental goals. This new plan will be communicated in summer 2020.


    High level of uncertainty on the duration of the Covid-19 crisis and impact on the macro-economic environment. The Group withdraws its earlier 2020 guidance elements.The Group now anticipates:

    •   Progressive lifting of border restrictions in 2020, enabling a slow capacity resumption in Summer 2020, with capacity for the second and third quarter 2020 around respectively -95% and -80% compared to previous year
    •   A prolonged negative impact on passenger demand, not expected to recover to pre-crisis levels before several years
    •   A fleet repositioning including structural capacity reduction of at least -20% in 2021 compared to pre-crisis 2019 level

      The Group foresees significantly negative EBITDA in full year 2020 and a significantly higher current operating income loss in the second quarter than in the first quarter 2020.

7 May 2020

Air France-KLM Group


First Quarter


2020 Change


Passengers (thousands)
Passenger Unit revenue per ASK2 (€ cts) Operating result (€m)
Net income – Group part (€m)
Adj. operating free cash flow (€m)
Net debt at end of period (€m)

18,111 5.80 -815 -1,801 -825 6,584

-20.1% -6.9% -529 -1,477 -1,066 437



1 2019 results restated for LLP componentization accounting change and EU passenger compensation reclassification between revenues and external expenses
2 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency


The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 6 May 2020 to approve the financial statements for the first quarter 2020.
Benjamin Smith, Chief Executive Officer of the Air France-KLM Group, said: “The Air France-KLM Group had a promising start to the first quarter in line with the objectives of the strategic plan presented in November 2019. However, the acceleration of the Covid-19 crisis in March had a strong impact on the Group’s first quarter results. I would like to thank our teams for their exceptional mobilization in this unprecedented crisis. The Air France-KLM Group has adapted rapidly, by implementing health safety measures essential to our staff and customers, reducing our costs to preserve our liquidity, continuously adjusting our flight schedule, and the many repatriation flights and flights to transport medical equipment. Uncertainties remain regarding the evolution of Covid-19 and we must be cautious in the assumptions of recovery in the coming months. Nevertheless, the commitment to financial support of the French and Dutch governments to our Group, as well as that our banking partners participating in these schemes, is a strong testimony of their confidence in our ability to weather this crisis and rebuild. We are working on a renewal plan to ensure that the Air France-KLM Group regains its competitiveness in a deeply shaken world and reaffirms its leadership in the sustainable transition of air transport. These new orientations will be presented in the coming months.”