Category Archives: Transavia Airlines (France)

Azores Airlines and Transavia combine flights to the Azores

Azores Airlines made this announcement:

From now on, it is possible to combine Transavia and Azores Airlines flights, which makes it easier for passengers to discover several islands in the Azores.

With the interline virtual agreement, Transavia passengers can, in addition to direct flights from Amsterdam to Ponta Delgada, choose one of many Azores Airlines flights to the Azores, via Porto, Lisbon, and Funchal. Azores Airlines passengers can do the same by using Transavia flights to Europe. This is made possible by introducing Transavia Smart Connect, together with Dohop, the digital interline platform provider.

Smart Connect knows how to link different flights smartly. The user-friendly platform offers passengers more convenience in searching for combined flights and allows them to discover even more beautiful islands of the Azores. The partnership with Azores Airlines is the first collaboration using Transavia Smart Connect.

To offer this service, Azores Airlines and Transavia work with Dohop. Dohop is an Icelandic company specialized in virtual interlining technology. Dohop helps airlines with the technology and the necessary platform. In addition, Dohop is responsible for the connection service. That means that Dohop will arrange a new flight and possible hotel accommodation for passengers who do not make it to their flight due to circumstances such as a delay or cancellation.

From now on, it is possible to combine Transavia and Azores Airlines flights, which makes it easier for passengers to discover several islands in the Azores.

With the interline virtual agreement, Transavia passengers can, in addition to direct flights from Amsterdam to Ponta Delgada, choose one of many Azores Airlines flights to the Azores, via Porto, Lisbon, and Funchal. Azores Airlines passengers can do the same by using Transavia flights to Europe. This is made possible by introducing Transavia Smart Connect, together with Dohop, the digital interline platform provider.

Smart Connect knows how to link different flights smartly. The user-friendly platform offers passengers more convenience in searching for combined flights and allows them to discover even more beautiful islands of the Azores. The partnership with Azores Airlines is the first collaboration using Transavia Smart Connect.

To offer this service, Azores Airlines and Transavia work with Dohop. Dohop is an Icelandic company specialized in virtual interlining technology. Dohop helps airlines with the technology and the necessary platform. In addition, Dohop is responsible for the connection service. That means that Dohop will arrange a new flight and possible hotel accommodation for passengers who do not make it to their flight due to circumstances such as a delay or cancellation.

Azores Airlines aircraft slide show:

Air France-KLM orders 100 Airbus A320neo family aircraft

Another blow to Boeing. Air France-KLM issued this statement:

On December 16, 2021, the Air France-KLM Board of Directors made the decision to move forward on the Group’s goal to improve its economic and environmental performance through the introduction of next generation aircraft. In doing so, the Group also demonstrated its ability to leverage purchasing synergies.

1. Firm order for 100 Airbus A320neo family aircraft – with purchase rights for 60 additional aircraft, to renew the fleets of KLM and Transavia Netherlands, and to renew and expand the fleet of Transavia France.

The order covers Airbus A320neo and Airbus A321neo aircraft. The first deliveries are expected in the second half of 2023.

Benefiting from the latest technological innovations, the A320neo family aircraft offer the best performance in their category for the network needs of the Group’s airlines. Compared to previous generation aircraft, they offer a unit cost reduction of more than 10%, as well as a 15% reduction in fuel consumption and CO2 emissions. Their noise footprint is also 50% lower.

Fleet renewal is the first lever to cut CO2 emissions, with immediate effect. Alongside the use of sustainable aviation fuels and eco-piloting, it is one of the pillars of the Group’s decarbonization trajectory, which aims for net zero emissions by 2050, and -50% CO2 emissions per passenger/km by 2030, i.e. -15% in absolute terms.

These aircraft will operate medium-haul routes in Europe, notably from Amsterdam-Schiphol – KLM’s global hub and Transavia Netherlands’ main base, and from Paris-Orly, Transavia France’s main base.

Details of the cabin configuration will be announced at a later date.

2. Signature of a Letter of Intent (LOI) for the purchase of 4 Airbus A350F Full Freighter aircraft – with purchase rights for 4 additional aircraft, to increase cargo capacity at Air France.

In the context of a steady and sustainable growth of demand for air cargo, this order would increase Air France-KLM’s cargo capacity.

Air France-KLM would be among the launch operators of the A350F Full Freighter.

This order would come with full substitution rights to Airbus A350 passenger aircraft, which constitute the new spearhead of the Air France long-haul fleet. The airline currently operates 12 of the 38 aircraft of the type on order.

Benjamin Smith, CEO of the Air France-KLM Group, said: These evolutionary orders will position our Group airlines on the path to improved performance while accelerating our decarbonization trajectory. This is a major step forward for KLM, Transavia and Air France, which will operate the best aircraft available for their network needs. The outstanding performances of the A320neo family and of the A350F Full-Freighter, which are quieter, more fuel-efficient and more cost-effective aircraft, make them the best choices for the long-term growth of our fleet. They will be instrumental in reaching our ambitious targets, including zero net CO2 emissions by 2050.”

As of December 15, 2021, Air France-KLM operated a fleet of 502 aircraft to over 300 destinations worldwide.

Air France-KLM loses 1.7 billion euros ($2.05 billion) in 2020

Air France-KLM Group issued this financial statement:

The COVID-19 crisis severely impacted the Full Year 2020 results:

 Revenue at 11.1 billion euros, down 59% compared to last year

 EBITDA loss at -1.7 billion euros, limited due to cost control

 Group net employee cost down 35% in 2020 compared to last year, supported by staff reductions, state support mechanisms and activity related wages. Average number of FTEs (Full Time Equivalent) in December 2020 decreased by 8,700 compared to December 2019

 Operating result at –4.5 billion euros, down 5.7 billion euros compared to last year

 Net income at -7.1 billion euros, including restructuring provision at -822 million euros, overhedging at -595 million euros and fleet impairment at -672 million euros

 Net debt at 11.0 billion euros, up 4.9 billion compared to end of 2019  At 31 December 2020, the Group has 9.8 billion euros of liquidity and credit lines at disposal

Read the full report.

Air France-KLM Group loses 1,665 million euros in the third quarter

Air France-KLM Group issued this financial report:

The continuation of the Covid-19 crisis severely impacted the Third quarter 2020 results:

  •   Revenue at 2,524 million euros, down 67% compared to last year
  •   EBITDA loss at -442 million euros, limited thanks to cost control and state aid
  •   Operating result at –1,046 million euros, down 1,955 million euros compared to last year
  •   Net income at -1,665 million euros, including restructuring provision at -565 million euros, Covid-19 related over-hedging at -39 million euros and fleet impairment at -31 million euros
  •   Net debt at 9,308 million euros, up 3,161 million compared to end of 2019
  •   At 30 September 2020, the Group has 12.4 billion euros of liquidity or credit lines at disposal

    Air France and KLM have agreed with labour representatives on substantial restructuring plans and submitted them for final validation to the French and Dutch states.

    OUTLOOK

    Air France-KLM Group continues to implement the highest safety standards for its customers and employees to counter virus transmission risks.

    After the lockdown, the Group observed a positive demand recovery trend until mid-August. Then, the negative trend reversal for the Passenger activity led the airlines of the Group to adjust downwards the capacity planned for the fall and winter period.

    There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented and also highly dependent on the imposed travel restrictions, especially on the Long Haul network. The period of lockdown starting today in France is a new difficulty that will weigh on the Group’s activities.

    In this context the Group expects:

  •   Capacity in Available Seat kilometers circa index 45 for KLM and inferior to index 35 for Air

    France in the Fourth quarter 2020 compared to 2019 for the Network passenger activity

  •   Negative load factor developments for the Fourth quarter 2020, particularly on the long-haul

    network, and negative yield mix effects due to a delayed recovery in business traffic

    The Group anticipates a challenging fourth quarter 2020, with a substantial lower EBITDA compared to Q3 2020.

THIRD QUARTER 2020
Increase of demand until mid-August,
then new governmental restrictions impacted the expected level of demand recovery

Air France-KLM Group

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Third quarter

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Nine months

2020 Change

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2020 Change 1

Passengers (thousands)
Passenger Unit revenue per ASK1 (€ cts) Operating result (€m)
Net income – Group part (€m)
Adj. operating free cash flow (€m)
Net debt at end of period (€m)

8,796 4.01 -1,046 -1,665 -1,220

-69.8% -42.7% -1,955 -2,026 -985

28,124 5.05 -3,414 -6,078 -3,547 9,308

-64.7% -24.5% -4,460 -6,213 -3,663 3,161

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1 Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency
1

The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met on 29 October 2020 to approve the financial statements for the nine months 2020. Group CEO Mr. Benjamin Smith said: “After a promising recovery during the summer, the gradual closure of international borders in the second half of August and the resurgence of the pandemic strongly impacted our results in the Third Quarter, with the Group reporting an operating loss of 1.0 billion euros. We have accelerated the implementation of cost reduction and cash preservation measures. We are also working closely with our partners on various means, such as rapid detection tests, that would allow traffic within the best sanitary conditions for our customers and employees.

Beyond these immediate necessary measures, we are engaged in a more profound transformation of our Group, with the objective of exiting this crisis in a stronger position, ready to address the future challenges of our industry. Air transport will continue to connect people and cultures, but we foresee changes in customers’ expectations that we anticipate too.

We expect a challenging Fourth quarter 2020, with current forward booking sharply down compared to last year.”

Business review

Network: With active management of capacity to meet the increasing demand, the Group was able to ramp up capacity with incremental cash positive flights

Third quarter 2020 revenues decreased by 68.3% at constant currency to 2,004 million euros. The operating result amounted to -990 million euros, a -1,631 million euros decrease at constant currency compared to last year. Measures were strengthened to preserve cash, including reduction of investments, cost savings measures, deferral of supplier payments and partial activity for employees.

Passenger network: Long-haul suffering from travel restrictions, ability to capture traffic when border controls are less restrictive

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Network

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Third quarter

Nine months

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2020 Change Change constant currency

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2020 Change Change constant currency

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Total revenues (€m) Scheduled revenues (€m) Operating result (€m)

2,004 1,856 -990

-68.6% -69.8% -1,649

-68.3% -69.4% -1,631

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7,220

6,753 -2,842

-58.8% -59.7% -3,555

-58.8% -59.7% -3,564

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Passenger network

Third quarter

Nine months

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2020 Change Change constant currency

2020 Change Change constant currency

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Passengers (thousands) Capacity (ASK m) Traffic (RPK m)
Load factor

Total passenger revenues (€m) Scheduled passenger revenues (€m) Unit revenue per ASK (€ cts)

6,782 -71.3% 32,100 -59.6% 13,752 -80.7%

42.8% -46.9 pt 1,329 -77.4% 1,265 -77.9%

3.94 -45.2%

-77.1% -77.6% -44.5%

23,671 -64.3% 103,268 -54.1% 66,861 -66.3% 64.7% -23.5 pt 5,512 -65.4% 5,271 -65.7% 5.10 -25.4%

-65.4% -65.7% -25.3%

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The passenger network activity was, as anticipated strongly reduced, at around 40% of last year’s levels. The tightening of travel restrictions, border closures and absence of corporate travel delayed the expected traffic recovery. July and August were relatively strong in term of traffic compared to a disappointing September affected by restrictive travel measures.

For the third quarter, the unit revenues were down at -44.5% at constant currency compared to last year primarily due to load factors decline on Long Haul operations.

2

The Group’s strategy was to only operate incremental cash positive flight and several routes were taking advantage of the strong worldwide cargo demand while having few passenger on board.

The visiting friend and relative demand was driving the summer traffic, with the French Domestic, African & Middle East and Caribbean & Indian Ocean as the more resilient with a unit revenue performance between -22% and -27% at constant currency.

The medium-haul performance was mixed during summer, with some leisure destinations such as Italy, Spain, Portugal and Greece benefiting from easing travel restrictions and other strongly affected by quarantine and testing process like UK or Germany.

North Atlantic, South American and Asian networks continued to be strongly affected by the border restrictions in place with an important decline in capacity and passenger traffic during summer.

Cargo: Continued strong performance of cargo due to the gap between industry capacity and demand

Cargo business

Third quarter

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Nine months

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2020 Change Change constant currency

2020 Change Change constant currency

Tons (thousands) Capacity (ATK m) Traffic (RTK m) Load factor

Total Cargo revenues (€m) Scheduled cargo revenues (€m) Unit revenue per ATK (€ cts )

220 2,537 1,735 68.4% 676 592 23.35

-20.0% -33.3% -17.0%

+13.4 pt +31.7% +35.7%

+104.0%

+34.1%

+38.0% +107.6%

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611 7,309 4,747 65.0% 1,708 1,482 20.28

-25.7% -32.9% -24.2% +7.5 pt

+7.1%

+8.7% +62.0%

+6.9%

+8.4% +61.6%

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Global air cargo capacity is at the end of the Third quarter 2020 approximately 15% lower than 2019. Tightening of supply and demand levels increased yields by significant amount over the past months.

September was the fifth consecutive month of gradual air cargo market improvements and Air France- KLM’s Cargo activity continued to strongly perform with a unit revenue at constant currency up 104.0% in the Third quarter 2020. The Cargo capacity of the Group has been down 33.3%, primarily driven by the reduction in belly capacity of passenger aircraft partly offset by the increase of the full freighters’ capacity and mini cargo flights (passenger aircraft with only belly capacity commercialized). The load factors were strongly up 13.4 points for the quarter.

On the demand side, world-wide air freight volumes are down due to Covid-19 crisis but are expected to rebound to 90 to 95% of pre Covid-19 levels in 2021. The supply-demand gap of the past months is foreseen to narrow as industry capacity supply will increase and will depend on the passenger traffic recovery. Air France-KLM is in preparation to transport the future Covid-19 vaccines.

3

Transavia operating loss in the Third quarter at -13 million euros, impacted by border restrictions reinstatement

Transavia

Third quarter

Nine months

2020 Change

2020 Change

Passengers (thousands) Capacity (ASK m) Traffic (RPK m)
Load factor

Total passenger revenues (€m) Unit revenue per ASK (€ cts) Unit cost per ASK (€ cts) Operating result (€m)

2,014 -63.3% 6,009 -44.7% 3,869 -61.8%

64.4% -28.7 pt 262 -60.6% 4.38 -30.2% 4.61 -1.3% -13 -189

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4,453 11,178 8,505 76.1% 521 4.55 6.39 -206

-66.6% -57.4% -64.9% -16.4 pt -62.9% -16.3%

+32.5% -364

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The Third quarter operating result ended 189 million euros lower compared to last year at an operational loss of -13 million euros, as a result of the Covid-19 crisis.

Activity levels were close to 55% of last year’s level, with an unit revenue down -30,2% compared to the Third quarter 2019. Transavia France and Holland were able to capture traffic and fill their planes with reasonable load factors and good yields on several leisure destinations. Spain, Greece, Portugal and Italy routes were the most resilient during the quarter. However, severe travel restrictions from the Netherlands to Spain and Greece in the course of the third quarter, did put pressure on activity levels and loadfactor.

Transavia France will expend its French Domestic operation starting in November 2020 from Paris Orly and provinces airports.
However, the resurgence of Covid-19 and border restrictions have slowed down Transavia in the traffic recovery.

Strict cash preservation measures are still in place including reduction of investments, cost savings measures, deferral of supplier payments and partial activity measures.

Maintenance business operating result for Third quarter 2020 at -46 million euros, impacted by Covid-19

Maintenance

Third quarter

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Nine months

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2020 Change Change constant currency

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2020 Change Change constant currency

Total revenues (€m) Third-party revenues (€m) Operating result (€m) Operating margin (%)

616 247 -46 -7.4%

-47.1% -54.5% -117 -13.5 pt

-53.1%

-111

-13.1 pt

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2,255 963 -366 -16.2%

-34.7% -40.7% -536 -21.2 pt

-41.6%

-542

-21.3 pt

The Third quarter operating result stood at -46 million euros, a decrease of 117 million euros, highly impacted by the Covid-19 crisis. Revenues declined and were also impacted by the Air France-KLM Group airlines decrease in activity.

During the Third quarter, contracts signature have restarted and will be included in the order book before year end. The Maintenance business is carefully managing agreements with clients on payment terms.

Operating costs have been reduced in the Third quarter 2020 by a reduced maintenance activity level, partial activity pay schemes for employees and other initiated cost savings measures.

The Maintenance order book is assessed to 9.3 billion dollars at 30 September 2020 a decrease of 2.2 billion dollars compared to 31 December 2019, explained by the Covid-19 crisis effects already occurring and expected.

4

Air France-KLM Group: Decline of 5 billion euros in revenues and 2 billion euros in EBITDA during the third quarter

Third quarter

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Nine months

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2020 Change Change constant currency

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2020 Change Change constant currency

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Capacity (ASK m)

Traffic (RPK m)

Passenger unit revenue per ASK (€ cts)

Group unit revenue per ASK (€ cts)

Group unit cost per ASK (€ cts) at constant fuel

38,109 17,621

4.01 5.56 8.31

-57.8% -78.4%

-43.4% -26.5% +26.7%

-42.7% -25.6% +38.2%

114,446 75,367

5.05 6.34 9.33

-54.4% -66.2%

-24.6% -12.3% +36.7%

-24.5% -12.3% +40.4%

Revenues (€m)
EBITDA (€m)
Operating result (€m) Operating margin (%)
Net income – Group part (€m)

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2,524 -442 -1,046 -41.4% -1,665

-66.8%

-2,095

-1,955

-53.4 pt -2,027

-66.4%

-2,071

-1,931

-53.2 pt

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8,725 -1,282 -3,414 -39.1% -6,078

-57.6%

-4,545

-4,460

-44.2 pt -6,213

-57.7%

-4,554

-4,470

-44.2 pt

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2019 results restated for LLP componentization accounting change and EU passenger compensation reclassification between revenues and external expenses

In the Third quarter 2020, the Air France-KLM Group posted an operating result of -1,046 million euros, down by 1,955 million euros compared to last year.

Net income amounted to -1,665 million euros in the Third quarter 2020, a decrease of 2,027 million euros compared to last year, of which exceptional accounting items due to Covid-19:

  •   Restructuring costs provision of-565 million euros with Departure Plan of French Ground staff, contractual termination for Air France flight attendants, complement for contractual termination for Air France pilots, Departure Plan for Air France-KLM International Commercial staff and Departure Plan for HOP!
  •   Q4 2020 and Q1 2021 fuel over hedge has been recycled to “Other financial income and expenses” for -39 million euros
  •   Fleet impairment on Airbus A380 and the Canadair Jet of HOP! At -31 million euros Currencies had a negative 92 million euro impact on revenues and a positive 67 million euro effect on

    costs including currency hedging in the Third quarter of 2020.

    Since the beginning of the crisis, Air France, KLM and Transavia proceeded 1.8 billion euros of refunds including 300 million euros of voucher issued.

    The Third quarter 2020 unit cost increased by 26.7%, primarily caused by Covid-19 related capacity reductions

    Group net employee costs were down 36% in the Third quarter 2020 compared to last year, supported by partial activity implementation at Air France and KLM, release of temporary and hired staff and no profit sharing provisions to be made at both airlines. The average number of FTEs (Full Time Equivalent) in the Third quarter 2020 decreased by 5,500 compared to the Third quarter 2019, including 2,500 temporary contracts.

5

Net debt up 3.2 billion euros

In € million

Third quarter

Nine months

2020 Change

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2020 Change

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Cash flow before change in WCR and Voluntary Departure Plans, continuing operations (€m)

Cash out related to Voluntary Departure Plans (€m) Change in Working Capital Requirement (WCR) (€m) Net cash flow from operating activities (€m)
Net investments* (€m)

Operating free cash flow (€m)

Repayment of lease debt

Adjusted operating free cash flow**

-594 -2,115

-137 -115 124 +831 -609 -1,399-362 +418 -970 -981 -251 -5-1,220 -985

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-1,926 -4,950

-152 -119 666 +582 -1,412 -4,487 -1,473 +738 -2,885 -3,749 -662 +86 -3,547 -3,663

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* 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 after deducting the repayment of lease debt.

The Group generated adjusted operating free cash flow in the Third quarter 2020 of -1,220 million euros, a decrease of 985 million euros compared to last year, mainly explained by an operating cash flow decline of 1,399 million euros, partly offset by a reduction in net investments of 418 million euros.

Postponement of social charges, taxes and negotiation with suppliers compensated the refunds process and the low inflow of bookings and generated an improvement of +582 million euros in Change in Working Capital Requirement compared to last year.

In € million

Both airlines results negatively impacted in the Third quarter 2020

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30 Sep 2020

31 Dec 2019

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Net debt
EBITDA trailing 12 months

9,308 -417

6 147 4 128

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Net debt/EBITDA trailing 12 months

-22.3 x

1,5 x

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Third quarter

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Nine months

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2020 Change

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2020 Change

Air France Group Operating result (€m)

Operating margin (%)

KLM Group Operating result (€m)

Operating margin (%)

-807 -54.1% -234 -20.5%

-1,200 -62.6 pt -745 -36.8 pt

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-2,401 -47.4% -1,002 -25.2%

-2,699 -49.8 pt -1,736 -33.9 pt

6

OUTLOOK

Air France-KLM Group continues to implement highest safety standards for customers and employees to counter virus transmission risks.

After the lockdown, the Group observed a promising demand recovery trend until mid-August. Then, the negative trend reversal for the Passenger activity led the airlines of the Group to adjust downwards the capacity planned for the fall and winter period.

There is limited visibility on the demand recovery curve as customer booking behavior is much more short-term oriented than before the Covid-19 crisis and also highly dependent of the imposed travel restrictions, especially on the Long Haul network. The period of lockdown starting today in France is a new difficulty that will weigh on the Group’s activities.

In this context the Group expects:

  •   Capacity in Available Seat kilometers circa index 45 for KLM and inferior to index 35 for Air

    France in the Fourth quarter 2020 compared to 2019 for the Network passenger activity

  •   Negative load factor developments for the Fourth quarter 2020, particularly on long-haul

    network, and negative yield mix effects due to a delayed recovery in business

    The Full year 2020 Network passenger activity will be inferior to index 50 compared to 2019, due to the Covid-19 crisis.

    The Group anticipates a challenging fourth quarter 2020, with a substantial lower EBITDA compared to Q3 2020.

    At 30 September 2020, the Group has 12.4 billion euros of liquidity or credit lines at disposal.

    The Group foresees important liquidity requirements in the Fourth quarter 2020 with:

  •   Negative Fourth quarter working capital requirement influenced by deferred payments and

    substantial lower level of new bookings compared to Q4 2019.

  •   Capex spending at 0.6 billion euros, of which half is fleet Capex fully financed. The Group has

    reduced to 2.1 billion euros his 2020 capex guidance. This is a reduction of -1.5 billion euros

    compared to the initial 2020 guidance of 3.6 billion euros.

  •   The hybrid bond was repaid in October for 0.4 billion euros.

7

AIR FRANCE AND KLM HAVE AGREED ON SUSBTANTIAL RESTRUCTURING PLAN WITH LABOUR REPRESENTATIVES

The Group’s strategic orientations defined during the 2019 Investor day started to deliver results in 2019 and in early 2020. However, the Covid-19 which began in the first quarter of 2020 around the world is having an unprecedented impact on the industry and the Group has immediately reacted with safety, operational and cash protection measures.

The focus on reducing external expenses and the number of employees were one of the top priorities. Futhermore, the French and the Dutch governments have provided financial packages and the partial activity implemented in France and the “NOW” mechanism in Holland allowed the Group to further reduce labor costs.

To weather the crisis and cope with the new reality, Air France-KLM Group is accelerating its transformation plans and presented a substantial restructuring plan around the competitiveness and sustainability pillars. Negotiations with the trade unions have resulted in several agreements in Air France and KLM.

To better align the fleet with the lower passenger demand, Air France-KLM Group has accelerated the phase-out of the Airbus 380, Airbus 340, Boeing 747, Canadair Jet and Embraer 145 aircraft. These decisions will bring forward cost savings and efficiency gains due to operating fewer aircraft types. The Group does not anticipate to return to the pre-crisis levels of global demand before several years and the short-term recovery expected has been delayed with the resurgence of Covid-19 end of summer.

KLM business model is still both valid and valuable but needs to be reshaped to the new reality. KLM will be smaller, cheaper, more frugal, more agile and more sustainable.
Operating costs will structurally being reduced in 2021 and beyond, with 750 million euros benefits in 2021 coming from labour, fleet, procurements and fuel costs decrease.

KLM’s restructuring plan calls for a reduction of 5,000 FTEs end of 2020. The plan submitted to Dutch Government early October complies with state aid conditions.

Air France will enlarge and accelerate its restructuring plan to build a post-crisis successful model on several pillars to restructure the French domestic, optimize external spendings, transform support functions, adapt the opeartions to the new activity, modernize the fleet and regain commercial success.

This will bring 800 million euros structural benefits by 2021 and 1.2 billion euros in total by 2022. Air France’s restructuring plan calls for a reduction of 4,000 FTEs end of 2020 and a total of 8,500 FTEs by 2022. The plan submitted to French Government complies with state aid conditions. The long term partial activity establishement is under discussion with representative unions.

Transavia France announces the first 14 destinations from Montpellier

Transavia (France) Boeing 737-800 WL F-HTVI (msn 62164) PMI (Javier Rodriguez). Image: 946600.

Transavia France, the low-cost carrier (LCC) subsidiary of the Air France – KLM group, just unveiled its first 14 destinations out of Montpellier. As of April 3, 2020, Transavia will be the only LCC with airplanes based in Montpellier.
As of April 3, 2020, Transavia’s two aircraft based at Montpellier Airport will propose flights to 14 new destinations, including 13 exclusive ones:
– Portugal :
o Lisbon: 3 weekly flights, from 39€*, 5 April 2020
o Faro: 2 weekly flights, from 34€*, 4 April 2020

– Spain :
o Madrid: 3 weekly flights, from 34€*, 5 April 2020
o Seville: 2 weekly flights, from 39€*, 5 April 2020
o Palma:  2 weekly flights, from 29€*, 5 April 2020

– Greece :
o Athens: 2 weekly flights, from 60€*, 4 April 2020
o Heraklion (Crete): 2 weekly flights, from 70€, 3 April 2020

– Italy :
o Rome: 2 weekly flights, from 29€*, 5 April 2020
o Palermo: 2 weekly flights, from 34€*, 3 April 2020

– Morocco :
o Marrakech: 2 weekly flights, from 54€*, 13 June 2020
o Agadir: 2 weekly flights, from 44€*, 20 June 2020
o Oujda: 2 weekly flights, from 44€*, 27 June 2020

– Tunisia :
o Tunis: 3 weekly flights, from 54€*, 5 April 2020
o Djerba: 2 weekly flights, from 54€*, 13 June 2020

These destinations come in addition to the existing Montpellier – Rotterdam route operated by Transavia Netherlands. Transavia aims to carry 500,000 passengers for its first year of operations.

*one-way, including taxes and non-optional charge.

Top Copyright Photo: Transavia (France) Boeing 737-800 WL F-HTVI (msn 62164) PMI (Javier Rodriguez). Image: 946600.
Transavia France aircraft slide show:
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Transavia France makes Montpellier its next base

Transavia's 2017 "#MyPicOnAPlane" logo jet

Transavia France, the low-cost carrier (LCC) subsidiary of the Air France-KLM Group, will base two aircraft at Montpellier Méditerranée Airport from Spring 2020. Montpellier will become the fourth base for the LCC in France, and next summer it will fly to 20 destinations. It joins the carrier’s existing bases in Paris Orly, Lyon and Nantes, as Transavia France continues to strengthen its presence in the French market.


Next spring, Transavia France will be the only LCC with aircraft based in Montpellier. Thanks to stationing two aircraft at the airport, the carrier is proposing to serve a large range of exclusive Mediterranean destinations to the people of Montpellier and its region.

Copyright Photo: Transavia (France) Boeing 737-8K2 WL F-GZHO (msn 43880) (#MyPicOnAPlane) PMI (Javier Rodriguez). Image: 938251.

Transavia France aircraft slide show:

Air France – KLM announce their winter schedule

Air France-KLM 2019-2020 Winter Schedule: +2.5% Increase in Capacity

· +2.5% compared to the previous winter season1;
· 32 new routes2 across the entire Air France-KLM network3.

For the 2019-2020 winter season (October 27, 2019 to March 28, 2020), Air France-KLM is increasing capacity by +2.5% year over year1 and is offering 32 new routes3. This increase is distributed as follows:

– +4% on the long-haul network,
– -2% on the medium-haul and short-haul networks,
– -1.9% for Transavia.

Long-haul: +4%

On its long-haul network, the Air France-KLM Group is increasing capacity by 4%, particularly to the Americas and Asia with Air France and to India with KLM.

The Group is offering five new routes3 and several additional frequencies compared to the previous winter season:

– 1 new flight from Paris-Charles de Gaulle with Air France to Quito (Ecuador)
– 4 new flights from Amsterdam-Schiphol with KLM: Boston (USA), Las Vegas (USA), Liberia (Costa Rica) and Bangalore (India).

· North America

In the United States, KLM is operating flights during the winter season for the first time to two new destinations: three weekly flights from Amsterdam-Schiphol to Boston with an Airbus A330-300 (292 seats) and three weekly flights to Las Vegas with a Boeing 787-9 (294 seats), continuing services from the summer season. Air France is also operating four additional weekly flights to Washington D.C. from Paris-Charles de Gaulle (for a total of 11 weekly flights).

In Canada, Air France’s Airbus A350-900, which joined the fleet this September, is flying to Toronto throughout the winter season. The company is also increasing the number of services to Montreal with one additional weekly flight (for a total of 14 weekly flights).

· Central and South America and the Caribbean:

In Mexico, Air France is increasing the number of services to Cancun with two additional flights from Paris-Charles de Gaulle (up to seven weekly frequencies), operated by Boeing 777-300ER (468 seats).

In Costa Rica, KLM is starting service to Guanacaste, Liberia, with four weekly flights operated by a Boeing 787-9 (294 seats). This destination is offered as a continuation of service to San Jose.

In Ecuador, Air France is operating flights for the first time during the winter season to Quito with three weekly flights, in continuation of the 2019 summer season. This route is operated by a Boeing 787-9 (276 seats).

In Colombia, KLM is increasing the number of flights from Amsterdam-Schiphol to Bogota and Cartagena with an additional flight, i.e. six weekly frequencies.

In Brazil, KLM is operating an additional flight to Fortaleza, i.e. four weekly flights.

In Peru, Air France is increasing seat capacity to Lima by +55% with two additional flights (for a total of five weekly flights).

In Chile, Air France is operating three additional flights to Santiago de Chile, i.e. 10x weekly

In Suriname, KLM is operating an additional flight to offer its customers a total of five weekly frequencies to Paramaribo.

In the Caribbean, Air France is increasing service to Saint Martin with one additional flight (now six weekly). In addition, KLM is resuming operations of direct flights to this destination with three weekly non-stop flights. The number of seats available to Curacao is also increasing by 15% thanks to four additional flights operated by KLM (now 11x weekly).

In Guadeloupe, from 16 to 29 December, Air France is operating four additional flights to Pointe-à-Pitre, for a total of 5,616 seats.

In Martinique, from 16 to 29 December, Air France is continuing to increase capacity to the French West Indies, offering six additional flights to Fort-de-France, i.e. 17 weekly flights.

· Asia and the Middle East

In South Korea, Air France customers will be able to fly to Seoul from December 9 with its new Airbus A350-900, the latest addition to the airline’s fleet.

In Japan, Air France is increasing the number of services to Osaka and Tokyo-Haneda, with one additional flight, i.e. six and 14 weekly flights, respectively.

In China, KLM is operating 11 weekly flights to Shanghai thanks to one additional flight.

In India, KLM is flying to Bangalore for the first time during the winter season, operating three times a week with a Boeing 787-9. KLM is also offering two additional flights to Mumbai (now 5x weekly).

In the United Arab Emirates, Air France is increasing the number of flights to Dubai, offering two additional flights, for a total of 12 weekly frequencies with a Boeing 777-300ER (296 seats).

· Africa and Indian Ocean

In Kenya, Air France is increasing service to Nairobi with two additional flights (now five weekly flights). KLM customers can now fly to this destination with a Boeing 787-10, which replaces the Boeing 747-400.

In Côte d’Ivoire, Air France is increasing seat capacity by +9% to Abidjan with five additional flights (now 12 weekly flights). The destination is served by the latest-generation Airbus A350-900 aircraft until 8 December 2019 and subsequently from 10 February 2020, as a continuation of flights to Bamako.

In Chad, Air France is increasing service to N’Djamena with an additional flight, i.e. 4 weekly flights.

In Congo and the Democratic Republic of the Congo, Air France is increasing the frequency of its flights and is offering a daily flight each to Brazzaville and Kinshasa with three and four additional flights respectively.

In Reunion, from 28 October to 12 January, Air France is increasing seat capacity by +13% to Saint-Denis with two additional flights, i.e., 13 weekly flights for the peak winter season.

Medium and short-haul: -2%

In the highly competitive market environment, capacity in the medium- and short-haul sector fell by 2%. In this context, the Air France-KLM Group has chosen to launch numerous initiatives to improve its value proposition, adapt to customer demand, and enhance its service to new destinations and facilitate connections with the launch of 10 new routes3, compared to the previous winter season.

Throughout the 2019-2020 winter season, Air France-KLM is offering five new routes –

– From Paris-Charles de Gaulle with Air France: Belgrade (Serbia), continuing from the 2019 summer season
– From Paris-Orly with Air France: Geneva (Switzerland)
– From Amsterdam-Schiphol with KLM: Naples (Italy) and Wroclaw (Poland), continuing from the 2019 summer season.
– From the French regions with Air France HOP:
o From Brest: Amsterdam-Schiphol (Netherlands) in continuation of the 2019 summer season

During the peak winter season, Air France-KLM is offering five new routes:

– From the French regions with Air France HOP:
o From Nice: Biarritz, Brest and Caen (France)
o From Strasbourg: Biarritz (France)
o From Metz: Pau (France)

First 737 with Split Scimitar Winglets in partnership with GKN Fokker Techniek

Above Copyright Photo: Transavia Airlines (Netherlands) Boeing 737-8K2 SSWL PH-HSK (msn 41330) AMS (Ton Jochems). Image: 947370.

Transavia (Netherlands) aircraft slide show:

Transavia: -1.9%

Transavia, the Group’s low-cost airline, is adapting to customer demand during the winter season and is consolidating its network from all its bases in France (Orly, Lyon and Nantes) and in the Netherlands (Amsterdam-Schiphol, Rotterdam and Eindhoven) with 17 new routes3 compared to the previous winter season.

– From Paris-Orly: Lanzarote (Spain), Fuerteventura (Spain) and Ouarzazate (Morocco) for the first time, as well as Catania (Sicily, Italy), Reykjavik (Iceland), Nador (Morocco), Palma de Mallorca (Spain), Thessaloniki (Greece) and Tirana (Albania) in continuation of the 2019 summer season.
– From Lyon: Beirut (Lebanon).
– From Nantes: Geneva (Switzerland) and Istanbul (Turkey) for the first time, as well as Oran (Algeria) and Tunis (Tunisia) in continuation of the 2019 summer season.
– From Amsterdam-Schiphol: Amman (Jordan), Reykjavik (Iceland).
– From Rotterdam: Tangier (Morocco).

1Capacity measured in available seat-kilometres compared to the 2018-2019 winter schedule.

2Compared to the 2018-2019 winter season.

3Air traffic route: service connecting an airport to another.

Air France to push for a larger Transavia France fleet with SNPL ALPA

Transavia (France) Boeing 737-8K2 WL F-GZHU (msn 41352) PMI (Ton Jochems). Image: 946601.

Air France-KLM has issued this statement:

Air France-KLM is pleased that the SNPL ALPA Air France council representing a majority of Air France pilots has voted 97% in favor of beginning negotiations with Air France management in order to increase the number of aircraft in the Transavia (France) fleet, currently capped at 40 aircraft.

“This new development is a strong sign of the improved relationship and positive culture taking hold within Air France,” said Benjamin Smith, CEO of Air France-KLM Group.

A larger Transavia France operation is designed to protect the current size of Air France mainline and to position Transavia France as a strong player in the competitive low-cost market.

Note: Transavia France currently operates 36 Boeing 737-800s.

Top Copyright Photo: Transavia (France) Boeing 737-8K2 WL F-GZHU (msn 41352) PMI (Ton Jochems). Image: 946601.

Transavia France aircraft slide show:

Air France-KLM announce their 2019 summer schedule with 58 new routes

For the 2019 summer season (March 31 to October 27, 2019), Air France-KLM is increasing capacity by 2% compared to the previous summer season1 and offering 58 new routes3. This growth is broken down as follows –

–        +1.3% for long-haul passenger operations,

–        +1.2% for medium and short-haul passenger operations,

–        +9.3% for Transavia’s low-cost operations.

LONG-HAUL: +1.3%

On its long-haul network, Air France-KLM will operate 4 new routes3

–        2 destinations on departure from Paris-Charles de Gaulle: Dallas (USA) and Quito (Ecuador) with Air France.

–        2 destinations on departure from Amsterdam-Schiphol – Boston and Las Vegas (USA) with KLM.

 

  • North America:

In the United States, Air France will inaugurate the Dallas/Fort Worth service with the completely redesigned Airbus A330 from March 31 to the end of the season with 5 weekly flights. KLM will launch a new service to Boston and Las Vegas, starting from March 31 and June 6 respectively. The company will also increase its flight frequencies to San Francisco as from July with an additional weekly flight (6 flights per week).

In Canada, Air France is adapting to demand by increasing its service to Toronto with 3 additional weekly flights operated by Boeing 777-200 equipped with the latest travel cabins (10 flights per week).

  • Central and South America and Caribbean:

In Brazil, since launching a new service to Fortaleza in May of last year, Air France and KLM confirm the popularity of this destination by respectively operating an additional frequency to Fortaleza. 3 weekly flights will thus connect Paris to Fortaleza and 4 weekly flights will connect Amsterdam to Fortaleza. Moreover, Joon will operate the service from France until June 26, after which the service will be entrusted to Air France.

In Columbia, KLM will increase service to Bogota and Cartagena with an additional flight (5 flights per week).

In Costa Rica, Air France will offer 3 weekly flights, i.e. 1 additional frequency.

In Ecuador, Air France will inaugurate the Paris – Quito route by Airbus A340 with 3 weekly flights.  Operated by Joon to begin with, the service will be resumed by Air France as of June 26.

In Suriname, KLM will add a frequency to Paramaribo as from July 1, increasing its capacity to 5 flights per week.

In the Caribbean, Air France will gradually resume its service to St Martin and increase its capacity with one additional weekly flight (3 fights per week). KLM will support this dynamic by introducing an additional frequency on the circle flights between St Martin and Curaçao (3 flights per week) as from July 5, 2019.

In Peru, Air France will operate an additional weekly flight to Lima, representing 7 flights per week.

In Panama, Air France customers will also benefit from an additional weekly flight between Paris and Panama (7 flights per week).

  • Asia and the Middle East:

In Japan, the Air France-KLM group is significantly increasing its service to Tokyo – 2 additional flights to Tokyo-Haneda on departure from Paris with Air France (14 weekly flights) and 3 additional flights to Tokyo-Narita on departure from Amsterdam with KLM (10 weekly flights). With these increased frequencies, the group is increasing capacity by +12% to Japan.

In China: KLM supports this dynamic in Asia with an additional weekly flight to Shanghai (12 weekly flights).

In India, Air France customers will enjoy a new travel experience on board the Airbus A330 to Bangalore and Delhi thanks to the new cabins in Business (36 seats), Premium Economy (21 seats) and Economy (167 seats). 15 aircraft will be completely redesigned by 2020.

  • Africa and the Indian Ocean:

In Kenya, Air France will offer 2 additional weekly flights to Nairobi, representing 5 weekly flights. The route will be operated by the redesigned Airbus A330.

In Côte d’Ivoire, customers will enjoy 3 additional frequencies to Abidjan (17 weekly flights).

 

MEDIUM AND SHORT-HAUL: +1.2%

On its medium and short-haul network, the group is expanding its offer of destinations and connections with 26 new routes2.

 

Throughout the 2019 summer season, the Air France-KLM group will offer 7 new routes2 on departure from the main hubs and regions:

 

–        On departure from Paris-Charles de Gaulle with Air France: Belgrade (Serbia), Tbilissi (Georgia) and Lorient (France) as from March 31.

–        On departure from Amsterdam-Schiphol with KLM: Wroclaw (Poland) as from May 6 and Naples (Italy) as from April 21.

–        On departure from the French regions with Air France HOP:

o   On departure from Lyon – Lorient (France),

o   On departure from Brest – Amsterdam (Netherlands),

 

During the peak summer period, the Air France-KLM group will offer 19 new routes2:

–       On departure from Paris-Charles de Gaulle – Heraklion (Crete, Greece), Olbia (Sardinia, Italy), Palermo (Sicily, Italy) and Split (Croatia) with Air France.

–       On departure from the French regions with Air France HOP:

o   On departure from Bordeaux – Athens (Greece),

o   On departure from Toulouse – Copenhagen (Denmark) and Minorca (Spain),

o   On departure from Marseille – Heraklion (Greece) and La Rochelle (France),

o   On departure from Brest – Bastia (France) and Nice (France),

o   On departure from Caen – Calvi (France),

o   On departure from Nice – La Rochelle (France) and Pau (France),

o   On departure from Rouen – Figari (France),

o   On departure from Nantes – Toulon (France),

o   On departure from Metz – Figari (France),

o   On departure from Perpignan – Strasbourg (France),

o   On departure from Rennes – Calvi (France).

TRANSAVIA: +9.3%

Transavia will develop its network from all its bases in France (Orly, Lyon and Nantes) and the Netherlands (Amsterdam, Rotterdam, Eindhoven) with 28 new routes3

–        From Eindhoven – Krakow (Poland) in continuation of the winter season and Zakynthos (Greece).

–        From Rotterdam – Nador (Morocco) and Lanzarote (Spain) in continuation of the winter season, Nice (France), Brindisi (Italy), Tangiers (Morocco), Corfu (Greece), Kos (Greece) and Zadar (Croatia).

–        From Amsterdam – Beirut (Lebanon) in continuation of the winter season.

–        From Groningen – Tenerife (Spain) in continuation of the winter season.

–        From Paris-Orly: Extension of service to Tenerife (Spain) in continuation of the winter season, Brindisi (Italy), Nador (Morocco), Minorca (Spain), Kos (Greece), Rhodes (Greece) and Zakynthos (Greece).

–         From Nantes – Tel Aviv (Israel) in continuation of the winter season, Budapest (Hungary), Mykonos (Greece), Santorini (Greece), Palermo (Italy), Copenhagen (Denmark) and Tunis (Tunisia).

–         From Lyon – Beirut (Lebanon) and Casablanca (Morocco).

 

On departure from the Netherlands, the Group’s low-cost company will increase its capacity by 4.5%.

On departure from France, total growth in capacity will amount to 16%.

 

CABINS HARMONIZATION AND SIMPLIFICATION FOR AN ENHANCED TRAVEL EXPERIENCE

The Air France-KLM group is harmonizing the distribution of its cabins on its long-haul network in order to guarantee its customers a clearer, simpler and more consistent travel experience.

In this way, the Air France La Première cabin will be available at least once a day to San Francisco, New York, Washington, Atlanta, Houston, Los Angeles, Mexico City, Sao Paulo, Abidjan, Dubai, Beirut, Beijing, Shanghai, Hong Kong, Tokyo-Haneda and Singapore. The company is standardizing its routes by mainly assigning its Airbus A380s to the United States.

Finally, Air France is harmonizing its products and services by constantly operating the same type of aircraft to a destination such as Tokyo-Haneda, which is operated daily by Boeing 777-200, Santiago de Chile by Boeing 777-300 and Toronto by Boeing 777-300.

KLM will be offering its new World Business Class on all its long-haul destinations. Its new Economy cabin will also be available on all Boeing 777, 787 and Airbus A330 aircraft.

AN ENHANCED AND MODERNIZED FLEET

Air France will welcome its first Airbus A350 (324 seats) in September 2019. Another 6 aircraft will be added to the fleet by the end of 2020. In addition, Air France will receive two Dreamliner 787-9 for the summer season, to operate a total fleet of 9 Dreamliner 787-9.

On July 1, KLM will launch the latest version of the Dreamliner: the Boeing 787-10 (344 seats). This latest generation aircraft is in addition to the company’s 13 Boeing 787-9 aircraft. Another 7 Boeing 787-10 aircraft will be added to the fleet by the end of 2020.

Transavia will fly its customers on board its 79 Boeing 737s throughout the 2019 summer season.

 

STRENGTHENED AGREEMENTS BETWEEN AIR FRANCE, KLM AND VIRGIN ATLANTIC

On March 4, Air France, KLM and Virgin Atlantic announced their first code-share agreement, offering their respective customers new travel options to and from North America and more opportunities to earn miles with their frequent flyer programmes. Thanks to this partnership, customers of the three airlines can create their own tailor-made transatlantic trip by choosing from the many flight options operated by Air France, KLM, Virgin Atlantic and Delta.

As a result, Air France and KLM customers will have access to a wide choice of additional flights with 24 new routes available between the United Kingdom and North America via London-Heathrow and Manchester. They will have access to more frequent flights on certain routes such as Amsterdam – Miami via London-Heathrow, as well as additional options between Paris and New York via Manchester.

1Capacity measured in available seat-km compared to the 2018 summer season forecasts.

2Compared to the 2018 summer season.

3Air traffic route – service connecting an airport to another.

 

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About Air France-KLM

Air France-KLM is the leading group in terms of international traffic on departure from Europe. It offers its customers access to a network covering 314 destinations in 116 countries thanks to Air France, KLM Royal Dutch Airlines and Transavia. With a fleet of 548 aircraft in operation and 101.4 million passengers carried in 2018, Air France-KLM operates up to 2,300 daily flights, mainly from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol.

Its Flying Blue frequent flyer program is one of the leaders in Europe with over 15 million members.

Together with its partners Delta Air Lines and Alitalia, Air France-KLM operates the largest transatlantic joint venture with more than 275 daily flights.

The Group also offers cargo transport and aeronautical maintenance solutions.

Air France-KLM is a member of the SkyTeam alliance which has 19 member airlines, offering customers access to a global network of over 14,500 daily flights to more than 1,150 destinations in more than 175 countries.