Category Archives: Air France-KLM Group

Air France-KLM reports its second quarter results

Air France-KLM made this report:

July 31, 2019

RESULTS AS AT JUNE 30, 2019

Increased operating result and improved passenger unit revenue

SECOND QUARTER 2019

  • Passenger growth +5.1% and load factor +1.3 point.
  • Passenger unit revenue up by 0.8%.
  • Unit costs decrease by -2.3% at constant currency and fuel.
  • Operating result at 400 million euros, up 54 millions euros compared to the second quarter 2018 hit by Air France strikes1, and reflecting unit cost improvement partly offset by an increased fuel bill.
  • Further reduction in Group net debt, down 466 million euros to 5.7 billion euros and Net debt/EBITDA ratio at 1.4x, an improvement of -0.1pt compared to 31 December 2018.

OUTLOOK 2019

  • Based on the current data for the Passenger network:
    • Long-haul forward booking load factors from August to December are on average ahead compared to last year.
    • Network passenger unit revenue at constant currency expected to be stable versus last year for the third quarter 2019.
  • Full year guidance update:
    • The Group will pursue initiatives to reduce unit costs, with a targeted 2019 reduction of between -1% and 0% at constant currency and fuel price.
    • The 2019 fuel bill is expected to increase by 550 million euros compared to 2018 to 5.5 billion euros, based on the forward curve of 26 July 2019.
    • Net debt/ EBITDA ratio below 1.5x.

Benjamin Smith, CEO of Air France-KLM Group, said: “In a challenging environment, Air France-KLM Group posted a robust second quarter. The slight increase in passenger unit revenue that we had anticipated, together with continued execution in unit cost reduction, enabled us to more than offset rising fuel costs. These elements, combined with satisfactory long-haul forward booking trends lead us to confirm our guidance for 2019. At the same time, we continue to implement our strategic vision focused on reducing costs and making our Group more robust in the very competitive marketplace in Europe. We have also made key decisions on the renewal of our fleet to transition to cleaner aircraft in order to support a more environmentally responsible operation, including the order of sixty Airbus A220s for short- and medium-haul and the accelerated phasing out of ten Airbus A380 to be replaced by more modern fuel efficient aircraft.”

Air France-KLM Group Second Quarter First half
2019 Change1 2019 Change1
Passengers (thousands) 27,800 +5.1% 50,474 +4.2%
Passenger Unit revenue per ASK2 (€ cts) 6.75 +0.8% 6.48 -0.4%
Operating result (€m) 400 +54 97 -131
Net income – Group part (€m) 80 -30 -240 -81
Adj. operating free cash flow (€m) 110 +111 351 +210
Net debt at end of period (€m) 5,698 -466

Second quarter 2019 business review 

Network: Solid revenue growth and increase in operating result

Network Second Quarter First Half
2019 Change Change
constant currency
2019 Change Change
constant currency
Capacity (ASK m) 75,680 +3.9%   145,440 +3.2%
Total revenues (€m) 6,016 +5.6% +3.9% 11,191 +3.8% +2.6%
Scheduled revenues (€m) 5,708 +5.8% +4.0% 10,601 +3.6% +2.3%
Operating result (€m) 291 +55 +77 12 -138 -68

Second quarter 2019 combined Passenger and Cargo revenues increased by 3.9% at constant currency to 6.0 billion euros, for capacity growth of 3.9%. The operating result amounted to 291 million euros, a 77 million euro increase at constant currency compared to last year, with the non-fuel unit cost improvement partly offset by a higher fuel bill.

Passenger network: Long-haul driving the improvement of unit revenue as anticipated

  Second Quarter First Half
Passenger network 2019 Change Change
constant currency
2019 Change Change
constant currency
Passengers (thousands) 22,906 +4.8%   42,651 +3.7%  
Capacity (ASK m) 75,680 +3.9% 145,439 +3.2%
Traffic (RPK m) 67,020 +5.7% 127,241 +3.8%
Load factor 88.6% +1.5 pt 87.5% +0.6 pt
Total passenger revenues (€m) 5,482 +6.4% +4.8% 10,110 +4.2% +3.2%
Scheduled passenger revenues (€m) 5,254 +6.6% +4.8% 9,674 +4.2% +2.9%
Unit revenue per ASK (€ cts) 6.94 +2.6% +0.9% 6.65 +1.0% -0.2%

Second quarter 2019 capacity increased by 3.9%, mainly driven by the South American, North Atlantic and Asian networks, with respective growth of 7.8%, 6.7% and 4.0%.
Taking into account a positive calendar effect from the Easter shift, the passenger network posted a positive unit revenue of +0.9% at constant currency.

The industry capacity growth has been lower in North America, Caribbean & Indian Ocean and Middle East network in comparison to previous year. The long-haul network generated positive load-factors and yields compared to last year in all networks except in the Latin American network:

  • The North American network posted positive unit revenue at +2.6% compared to last year, with the strength driven in particular by US points of sale.
  • The Asian network unit revenue was up 3.9% in the second quarter, driven by the continuing strength of the Japanese network, partly offset by some competitive pressure on the Chinese network.
  • The Caribbean & Indian Ocean network posted a strong result with the unit revenue +4.7%, driven by leisure demand.
  • The Africa & Middle East network saw a substantial unit revenue improvement of 8.7%, underpinned by positive results from the West African networks and network rationalizations in the Middle East.
  • The unit revenue pressure in the Latin American network remains ongoing for the time-being due to the current economic context in Argentina and Brazil.

The medium-haul network showed a mixed picture with a positive performance for the medium-haul hubs with the unit revenue +0.2% and, as anticipated, pressure in the medium-haul point-to-point network with unit revenue down -9.1%.
 

Cargo network: Unit revenue impacted by a challenging airfreight market

  Second Quarter First Half
Cargo business 2019 Change Change
constant currency
2019 Change Change
constant currency
Tons (thousands) 279 +1.5%   549 +0.7%  
Capacity (ATK m) 3,630 +2.8% 7,092 +2.1%
Traffic (RTK m) 2,122 +1.2% 4,168 +0.9%
Load factor 58.5% -0.9 pt 58.8% -0.7 pt
Total Cargo revenues (€m) 534 -1.7% -4.1% 1,081 -0.5% -2.7%
Scheduled cargo revenues (€m) 454 -2.8% -5.2% 927 -1.7% -3.9%
Unit revenue per ATK (€ cts ) 12.54 -5.1% -7.5% 13.09 -3.6% -5.7%

Negative market dynamics and continued higher industry capacity put pressure on the unit revenue during the second quarter 2019. After two strong years, renewed overcapacity in North America and Asia is putting pressure on freight rates, resulting in unit revenue down -7.5% at constant currency.
The Group’s Cargo strategy is focused on maintaining and increasing load factors where possible and taking a pro-active approach to new opportunities.

Transavia: High capacity growth and positive unit revenue

  Second Quarter First Half
Transavia 2019 Change 2019 Change
Passengers (thousands) 4,894 +6.7% 7,823 +7.0%
Capacity (ASK m) 9,527 +9.2% 15,353 +10.0%
Traffic (RPK m) 8,754 +9.1% 14,122 +10.1%
Load factor 91.9% -0.1 pt 92.0% +0.0 pt
Total passenger revenues (€m) 500 +10.4% 748 +8.7%
Unit revenue per ASK (€ cts) 5.24 +1.3% 4.83 -0.4%
Unit cost per ASK (€ cts) 4.70 +5.1% 4.95 +2.6%
Operating result (€m) 52 -9 -19 -22

Strong capacity growth of 9.2% in the second quarter 2019. The unit revenue was up by 1.3% compared to last year, supported by the Easter shift, strong demand throughout the network and a good ancillary revenue performance.
The second quarter 2019 operating margin stands at a level of 10.4%, with an absolute operating result of 52 million euros, 9 million euros down compared to last year explained by fuel price and currency headwinds.

Maintenance: Strong third-party revenue growth and margin improvement

  Second Quarter First Half
Maintenance 2019 Change Change
constant currency
2019 Change Change
constant currency
Total revenues (€m) 1,120 +11.2% 2,290 +10.0%
Third-party revenues (€m) 527 +11.9% +5.0% 1,081 +14.9% +7.6%
Operating result  (€m) 55 +9 +1 102 +30 +18
Operating margin (%) 4.9% +0.3 pt -0.2 pt 4.5% +1.0 pt +0.6 pt

Maintenance revenues increased compared to last year with third-party revenues up by 11.9% and 5.0% at constant currency, a continuation of the growth trend underpinned by the inflow of new contracts. The Maintenance order book stood at 11.6 billion dollars at 30 June 2019, an increase of 0.2 billion dollars compared to 31 December 2018.
The operating margin expressed as a percentage of total revenues stood at 4.9%, an increase of 0.3 point primarily driven by the components activity.

Air France-KLM Group: Operating result at €400 million with positive passenger unit revenue and unit cost improvement

  Second Quarter First half
  2019 Change Change
constant currency
2019 Change Change
constant currency
Capacity (ASK m) 85,207 +4.5%   160,793 +3.8%
Traffic (RPK m) 75,774 +6.1%   141,363 +4.4%  
Passenger unit revenue per ASK (€ cts)  6.75 +2.4% +0.8% 6.48 +0.8% -0.4%
Group unit revenue per ASK (€ cts)  7.28 +1.6% +0.0%  7.05 +0.2% -1.0%
Group unit cost per ASK (€ cts) at constant fuel  6.82 -0.3% -2.3% 6.99 +0.4% -1.4%
Revenues (€m) 7,050 +6.4% +4.5% 13,036 +4.9% +3.3%
EBITDA (€m) 1,147 +98 +114 1,571 -99 -42
Operating result (€m) 400 +54 +72 97 -131 -69
Operating margin (%) 5.7% +0.5 pt +0.8 pt 0.7% -1.1 pt -0.6 pt
Net income – Group part (€m) 80 -30   -240 -81  

In the second quarter 2019, the Air France-KLM Group posted an operating result of 400 million euros, up 54 million euros compared to last year, which was impacted by the Air France strike for 260 million euros.

Compared to last year, the Group’s unit revenue was stable, the positive passenger unit revenue impact of 53 million euros being offset by a -54 million euro negative impact from Cargo.

The fuel bill including hedging amounted to 1,404 million euros for the second quarter 2019, up 220 million euros. This increase is explained mainly by a lower hedge gain for the second quarter 2019 (gain of 56 million euros compared to 212 million euro last year), and a negative currency effect on the fuel bill of 89 million euros due to a stronger dollar.

Currencies had a positive 123 million euro impact on revenues and a negative 52 million euro effect on costs (ex-fuel) including currency hedging. Together with the 89 million euro fuel currency effect, the net impact of currencies amounted to a negative 18 million euros for the second quarter 2019.

Unit cost down confirming the full year guidance
On a constant currency and fuel price basis, unit costs were down -2.3% in the second quarter 2019. This decrease is supported by the successful execution of cost focus measures in Air France and the high basis of comparaison last year due to the strikes at Air France.
However this was partly offset by higher unit costs at KLM due to the implementation of last year’s labor wage agreements.

Group net employee costs were up 4.6% in the quarter compared to last year, explained by additional hires in response to the capacity growth and the impact of wage agreement implementation for Air France and KLM staff. The average number of FTEs in the second quarter 2019 increased by 1,650 compared to last year, including +700 Pilots and +650 Cabin Crew. However, productivity measured in ASK per FTE increased by 3.1% in the second quarter 2019.

Net debt down, leverage ratio improved slightly further, on track for full year guidance of below 1.5x

  Second Quarter First Half
In € million 2019 Change 2019 Change
Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m) 1,096 +175 1,465 +31
Cash out related to Voluntary Departure Plans (€m) -6 +92 -11 +110
Change in Working Capital Requirement (WCR) (€m) -19 -45 787 -46
Net cash flow from operating activities (€m) 1,071 +222 2,241 +95
Net investments before sale & lease-back* (€m) -711 -136 -1,389 +99
Operating free cash flow (€m) 360 +86 852 +194
Reduction of lease debt -250 +25 -501 +16
Adjusted operating free cash flow ** 110 +111 351 +210

* Sum of ‘Purchase of property, plant and equipment and intangible assets’ and ‘Proceeds on disposal of property, plant and equipment and intangible assets’ as presented in the consolidated cash flow statement.

** The “Adjusted operating free cash flow” is operating free cash flow with deduction of the repayment of lease debt.

Positive adjusted operating free cash flow
The Group generated positive adjusted operating free cash flow of 110 million euros, an increase of 111 million euros compared to last year, mainly explained by lower capex in the second quarter 2019 due to a year-on-year shift in the investment-timing pattern.

Leverage on track with full year guidance of <1.5x       

In € million 30 Jun 2019 31 Dec 2018
Net debt 5,698 6,164
EBITDA trailing 12 months 4,118 4,217
Net debt/EBITDA trailing 12 months 1.4 x 1.5 x

The Group reduced its net debt to 5,698 million euros at 30 June 2019 versus 6,164 million euros at 31 December 2018, this 466 million euro reduction being driven by operating free cash flow generation and the repayment of lease debt.
The net debt/EBITDA ratio stood at 1.4x at 30 June 2019, a decrease of 0.1 point compared to 31 December 2018, explained by the reduction in net debt.

Air France improvement explained by last year strike, KLM impacted by fuel

Second Quarter First Half
  2019 Change 2019 Change
Air France Group Operating result (€m) 143 +130 -113 +51
Operating margin (%) 3.3% +3.0 pt -1.4% +0.8 pt
KLM Group Operating result (€m) 258 -70 202 -186
Operating margin (%) 8.9% -2.8 pt 3.8% -3.7 pt

Outlook

The global economic and geopolitical context remains uncertain and the Group operates in a highly competitive marketplace.
Based on the current data for the Passenger network:

  • Long-haul forward booking load factors from August 2019 to December 2019 are on average ahead compared to last year.
  • Network passenger unit revenue at constant currency is expected to be stable compared to last year for the third quarter 2019.

Capacity growth update:

  • With the growth of Transavia France adjusted slightly downwards, Transavia is expected to grow at a sustainable pace of 7% to 9% for full year 2019.
  • Passenger network plan remains unchanged to moderately grow capacity by 2% to 3% for the full year 2019 compared to last year.

Full year guidance update:

  • The Group will pursue initiatives to reduce unit costs1, with a targeted 2019 reduction of between -1% to 0% at constant currency and fuel price.
  • The 2019 fuel bill is expected to increase by 550 million euros compared to 2018 to 5.5 billion euros2, based on the forward curve of 26 July 2019.
  • The Group plans capital expenditure of 3.2 billion euros for 2019 and is targeting a Net debt/EBITDA ratio of below 1.5x.

*****

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Air France-KLM to simplify its structure

The Board of Directors of Air France-KLM on February 19 unanimously approved the presentation of Benjamin Smith, CEO Air France-KLM, outlining his ambitions for the Group, principles of managerial governance, strategic decisions and processes to be made at Group level with the goal of simplifying and improving the governance of the Group in order to reach European airline leadership.

Some key elements necessary to achieve the long-term goals of the Group:

  • Create a new Group CEO Committee to determine the strategic direction for all Group airlines and business units. This CEO committee will be chaired by Benjamin Smith. The other members of the committee include Pieter Elbers (CEO KLM), Anne Rigail (CEO Air France) and Frédéric Gagey (CFO Air France-KLM). The three of them will report directly to Benjamin Smith.
  • Increase collaboration across the Group to better capture synergies, efficiencies and economies of scale, with the aim of improving overall Group profitability
  • Celebrate the longstanding heritage, reputation and brand recognition of Air France, KLM and Transavia within their respective markets and reinforce the Group’s position at it two hubs, Amsterdam Schiphol and Paris-Charles de Gaulle
  • Simplify key Group operational processes in the following areas: fleet and network strategy, commercial and alliances strategy, human resources, purchasing, digital and data management.

The Board of Air France-KLM concurs with the Supervisory Board of KLM and proposes the renewal of Pieter Elbers as CEO of KLM during the KLM Annual General Meeting in April.

Both Anne Rigail and Pieter Elbers are hereby also appointed Air France-KLM Deputy CEOs and have expressed their commitment to build the Group’s success alongside Benjamin Smith.

The Air France-KLM Board of Directors acknowledges the entry of Benjamin Smith to the Supervisory Board of KLM at their next AGM.

Cees’t Hart will become a member of the Air France-KLM Board of Directors at the Group’s next AGM, replacing Hans Smits.

“We are convinced that Benjamin Smith and his team, with the renewal of Pieter Elbers, will drive further growth at Air France-KLM, leveraging the combined strength and experience provided by the Group and its airlines.” said Anne-Marie Couderc, Chair of the Air France-KLM Board. “The Board of Directors welcomes this new management structure adopted today, that will help the Group, under the clear leadership of Benjamin, achieve industry leadership and success”

Air France-KLM to finalize a joint venture with Air Europa for flights to Latin America

Air France-KLM and Air Europa intend to conclude a new joint venture agreement for their flights between Europe and Central and South America. This foreseen agreement will allow both to expand their offerings and enhance travel opportunities for their respective customers.

For many years, both Air France and KLM have had a fruitful cooperation with Air Europa. The current partnership consists mainly of successful codeshare agreements between and beyond Paris and Amsterdam on the one hand and Madrid on the other. Air France and Air Europa started their code share cooperation in 2003 and currently cover 21 code share routes within Europe. KLM and Air Europa have been collaborating since 2002 and now operate 19 code share routes within Europe. In 2007, Air Europa also joined the SkyTeam Alliance.

Air Europa Boeing 787-8 Dreamliner EC-MOM (msn 36419) PAE (Nick Dean). Image: 937618.

Both parties are currently conducting an integral analysis of a deeper and expanded cooperation, aiming at a joint venture agreement between Air France-KLM and Air Europa between Europe and Central/South America to strengthen the joint offer to customers.

The complementarity of the respective networks from/to Central and South America will provide significant additional benefits for customers in the form of better connectivity, increased seat availability and a basis to launch new routes and direct flights between the two continents.

Air France-KLM and Air Europa are in the midst of carrying out an in-depth legal analysis of the terms of this possible future agreement in order to ensure compliance with all applicable laws and regulations.

“The deepening of our cooperation with Air Europa through a joint venture will provide a strong foundation for us to work even closer together in order to enhance our offer on routes between Europe and Central / South America. We are striving to even increase and improve our current leading role on these markets and offer our joint customers more benefits together with our long term partner Air Europa” said Frédéric Gagey, Chief Executive Officer and Chief Financial Officer, Air France-KLM.

“We are proud to be strengthening and expanding the successful relations we have with Air France-KLM and to be working together as part of the new cooperation project between Europe and Central and South America. We are convinced that this new alliance will provide great benefits for both airlines as well as considerable advantages for our customers,” said Javier Hidalgo, Chief Executive Officer of Globalia, parent company of Air Europa.

Copyright Photo: Air Europa Boeing 787-8 Dreamliner EC-MOM (msn 36419) PAE (Nick Dean). Image: 937618.

Air Europa aircraft slide show:

Air France-KLM Group report their third quarter financial results

Air France Airbus A380-861 F-HPJA (msn 033) TLS. Image: 904814.

Air France-KLM Group reported their third quarter financial results:

Jean-Marc Janaillac made the following comments: “The strong operating performance achieved by the Group in the third quarter reflects a sustained execution on our strategic priorities, as well as a robust business environment translated into solid traffic and unit revenue trends. We continued to move forward notably with the expansion of our network of strategic alliances and the implementation of a new distribution model. At the same time, we relentlessly pursued our efforts to strengthen our financial structure. All of these accomplishments demonstrate that Air France-KLM is well on track to deliver on Trust Together strategic priorities of growing revenues and improve competitiveness.”

Third Quarter

Nine months

2017 Change

2017 Change

Passengers (thousands)
Unit revenue per ASK (€ cts) Operating result (€m)
Net result – group (€m) Operating free cash flow (€m) Net debt at end of period (€m)

27,911 7.03 1,022 552 125

+5.1%

+4.1% +38.7% +1.5% +248

75,056 6.75 1,375 703 793 2,796

+6.0%

+1.8% +44.0% +63.5%

+543 -859

Summary:

Copyright Photo: Air France Airbus A380-861 F-HPJA (msn 033) TLS. Image: 904814.

Air France:

Air France-KLM’s first quarter loss widens

Air France-KLM Group (Air France, KLM Royal Dutch Airlines, Transavia Netherlands, Transavia France, Hop! and Martinair) reported a first quarter net loss of €504 million ($56.9 million), compared to a net loss of €485 million ($546 million) in the same quarter a year ago.

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. The group retired three Boeing 747 freighters in the Winter 2014-15 season, while another five Martinair McDonnell Douglas MD-11s will be retired by the end of the Winter 2015-16 season. The Group plans to operate only five full-freighters by the end of 2016. McDonnell Douglas MD-11 (F) PH-MCS (msn 48618) of Martinair taxies at the Amsterdam cargo hub.

Air France aircraft slide show: AG Airline Slide Show

KLM aircraft slide show: AG Airline Slide Show

Martinair aircraft slide show: AG Airline Slide Show

Air France-KLM Group 2014 profit falls nearly 15% due mainly to the pilot strike

Air France-KLM Group (Air France) (KLM) (Paris and Amsterdam) reported its pre-tax 2014 earnings fell to 1.59 billion euros ($1.81 billion) from 1.86 billion euros ($2.1 billion) for the previous year. As a result, the group is delaying deliveries of aircraft for both Air France and KLM. Air France will also maintain its Airbus A380 fleet at 10 aircraft and delay taking delivery of the last two.

Read the the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. KLM is celebrating 95 years of flying and is adding special 95 Years logos on select aircraft including the pictured Boeing 777-306 ER PH-BVK (msn 42172) at the AMS hub.

Air France aircraft slide show: AG Airline Slide Show

KLM aircraft slide show: AG Airline Slide Show

AG Aviation friend

Air France and KLM announce their schedule changes for the winter season

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) have issued details of their winter schedule from October 26 through March 28, 2015. Overall group capacity will only increase by 0.7 percent as Air France tries to recover from its devastating pilot strikes. However Transavia will see a 13.3 percent increase in capacity as the group tries to drive more operations to the lower cost divisions. Air France is cutting dome domestic AF services with the goal of breaking even by 2017. Here is the full report:

For the 2014-15 winter season (from October 26, 2014 to March 28, 2015), Air France-KLM Group capacity is scheduled to increase by 0.7%, with an increase of 0.1% for passenger operations(Air France, KLM and HOP!) and 13.3% for low-cost leisure operations (Transavia in France and the Netherlands).

Short and medium-haul capacity at the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs will increase slightly (+3.1%). In the same way as last summer, point-to-point short and medium-haul capacity will continue to decrease (-11.3%). Transavia capacity will increase by +13.3%, with growth concentrated on the French market (+56%).

Air France-KLM has chosen to move upmarket with the progressive introduction of new products and services of the highest global standards.

On the long-haul network, 22 Boeing 747-400s have been equipped with KLM’s new World Business Class and 777-200s will be finished before the summer of 2015, followed by implementing the new World Business Class in the 777-300s. By the end of 2016 about 80% of the KLM fleet will be done. Air France continues to roll out its new Best cabins: five Air France Boeing 777s will be equipped by end-2014. Flights to New York, Singapore and Jakarta have already been equipped with these brand new products. Services to Tokyo-Haneda, Shanghai, Dubai, Houston, Sao Paulo, Douala and Malabo will gradually be added to this list in winter 2014.

Furthermore, this winter the Company will operate two new destinations by Airbus A380: Miami and Abidjan, in addition to Los Angeles, New York, Johannesburg, Hong Kong and Shanghai already served by the super jumbo this summer.

Long-haul: + 0.3%

On the long-haul network, Air France-KLM Group capacity is up slightly compared with winter 2013-14 at +0.3%.

On the North American network, capacity is up +2.4% compared with winter 2013-14

KLM is once again increasing capacity to Atlanta, from 7 to 12 weekly flights, in response to market demand. These new frequencies will facilitate connections with the Delta Air Lines network in Atlanta, one of the main hubs served by the Air France-KLM partner.

The Air France Airbus A380 will be flying the Miami route as from early December. Three U.S. destinations will thus be operated this winter by the A380 on departure from Paris-Charles de Gaulle – New-York-JFK, Los Angeles and Miami.

In Mexico, KLM will increase its frequencies to Mexico City, from 7 to 9 weekly flights in November and December, in line with seasonal demand. Air France capacity on a code-share basis with Aeromexico is increasing with 13 new destinations in Mexico and Central America on departure from Mexico City.

In Central and South America, Group capacity is up +1.1%.

Air France continues to serve Brasilia (Brazil) three times a week and Montevideo (Uruguay) is served daily in continuation of Buenos Aires (Argentina). The Company is increasing capacity to Panama City, increasing from three to five weekly frequencies by B777-200 and benefits from Copa’s Central American hub thanks to the commercial agreement between the two airlines.

Air France-KLM continues its close cooperation with the Brazilian airline GOL in order to take advantage of its joint network in the region and offer its customers improved connecting opportunities with the Brazilian domestic network this winter.

In the Caribbean, Air France-KLM capacity is revised downwards (-2.2%). Between mid-December and mid-January, Air France will operate 13 weekly flights (instead of 14) to Pointe-à-Pitre and 11 weekly flights (instead of 14) to Fort-de-France. KLM will increase capacity in the Caribbean in response to increasing demand for these destinations.

In Asia, Group capacity is up slightly at +0.7%.

In continuation of the summer schedule, Air France is continuing to serve Tokyo-Haneda airport up to 11 times per week in addition to the daily flight to Tokyo-Narita, providing connecting opportunities to Noumea (New Caledonia). Services to Jakarta (Indonesia) in continuation of the Singapore flight are also maintained on a daily basis.

To take advantage of the seasonal nature of certain destinations, Air France is increasing capacity during the peak winter season between mid-December and mid-March to Bangkok (Thailand) (one daily flight) and Kuala Lumpur (Malaysia) (addition of a fourth frequency).

In China, capacity to Wuhan is being increased by one weekly frequency, with three weekly flights. Guangzhou will be served by four weekly flights.

KLM continues to cooperate with its Asian partners to offer customers a wider choice of connecting flights and even more destinations in Asia.

Africa: capacity slightly down by -0.8%

In Africa, Group capacity is slightly down to -0.8%.

Air France is adjusting its flight offering and reinforcing its most buoyant routes such as Abidjan (Ivory Coast), with the entry into service of the A380, and Pointe Noire (Congo) with the introduction of a sixth weekly frequency.

In East Africa, KLM is reorganizing its network to adapt it to specific market expectations. Capacity to Dar es Salaam (Tanzania) and Entebbe (Uganda) is up. The two cities are now served directly three times a week. On the other days, they are served via Kilimanjaro (Tanzania) and Kigali (Rwanda) respectively. KLM has suspended direct service to Harare (Zimbabwe) and Lusaka (Zambia). These two destinations remain in the Group’s capacity and are currently served by Kenya Airways via Nairobi (Kenya).

In the Indian Ocean region, Air France-KLM is adjusting capacity (-2.8%). From mid-December to mid-January, Air France will offer 11 flights to Reunion island (instead of 12) and an additional flight to Mauritius.

Middle East: capacity down by -5.2%

In the Middle East, Air France-KLM capacity is down by -5.2%. KLM is again increasing capacity to Abu Dhabi (United Arab Emirates) in combination with Bahrein, as a result of its optimized cooperation with Etihad Airways, Air France-KLM’s partner. KLM will serve this destination using an Airbus 330-300, instead of an A330-200. Dubai will be served by the Air France B777-300 equipped with the new Best cabins in early 2015.

Medium-haul

On the medium-haul network, the 2014-15 winter season sees the full effect of the measures of the Transform 2015 plan.

On departure from the Paris-Charles de Gaulle and Amsterdam-Schiphol hubs: capacity increases by +3.1%
Air France and KLM continue to serve the routes launched this summer: on departure from Paris-Charles de Gaulle, Stavanger (Norway) with two daily frequencies; on departure from Amsterdam-Schiphol, two daily flights to Turin (Italy), one daily flight to Bilbao (Spain) and Zagreb (Croatia).

KLM strengthens its position in Scandinavia by increasing frequencies to Bergen (Noway) with three daily flights and five daily flights to Billund (Denmark). KLM will also increase capacity to Moscow (Russia) and Bordeaux with three daily flights.

Air France aims to better seize connecting opportunities to the rest of the world and maintain capacity adapted to variations in demand between winter and summer: for example, one daily frequency is being suspended to Munich (Germany), Bucharest (Romania), Moscow (Russia), Rome (Italy) and Bremen (Germany).

On departure from Paris-Orly and the French provinces: capacity down by -11.3%
This winter, point-to-point short and medium-haul capacity (Air France, HOP!) is down by -11.3%. Seasonal adjustments are more pronounced, with the aim to return to operational breakeven by 2017.

On departure from Paris-Orly, Air France suspends one daily flight to Bordeaux and two daily frequencies to Toulouse. From the provinces, structural adjustments continue, notably with the suspension of several destinations in Europe and North Africa on departure from Toulouse and Marseille.

HOP! capacity is slightly up in France and to major European cities on departure from the French provinces. With its 26 destinations, Lyon is the Company’s main base, giving customers from the French regions access to a vast network of connecting flights.

Low-cost leisure operations

Transavia: strong increase in capacity of +13.3%

Transavia France, a low-cost subsidiary of the Air France-KLM Group, will continue to develop as outlined in the Transform 2015 plan. During the 2014-15 winter season, Transavia France will operate nine new routes launched this year on departure from Paris-Orly – Istanbul, Tel Aviv, Budapest, Madrid, Malaga, Barcelona, Athens, Pisa and Prague. On departure from Lyon, Transavia will also inaugurate a service to Tel Aviv as from October 2014.

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. As previously reported, Air France is bringing the Airbus A380 to Miami this winter. A380-861 F-HPJI (msn 115) taxies at the Paris (CDG) hub with the special 80 And (Years) markings.

Air France: AG Slide Show

KLM: AG Slide Show

Air France Aircraft Slide Show: