OREANDA-NEWS. AirFrance-KLM Financial Year 2015: First Half results.

SECOND QUARTER

  • Revenues of 6.64 billion euros, up 3.0%, down 4.5% like-for-like
  • EBITDAR of 824 million euros, a decrease of 30 million euros
  • Operating result of 185 million euros, a decrease of 53 million euros,stable like-for-like
  • Unit cost down 0.5% like-for-like

FIRST HALF

  • Revenues of 12.30 billion euros, up 2.4%, down 3.6% like-for-like
  • EBITDAR of 1,053 million euros, an improvement of 32 million euros
  • Strong operating free cash flow generation: 274 million euros
  • Further net debt reduction: net debt of 4.55 billion euros, down 857 million euros compared to 31 December 2014
  • Adjusted net debt / EBITDAR ratio of 3.8x, an improvement of 0.2 compared to 31 December 2014

FULL YEAR 2015 OUTLOOK: OBJECTIVES MAINTAINED

  • Unit cost reduction in the 1% to 1.3% range
  • Significant reduction in net debt, from 5.4 billion euros at end 2014 down to around 4.4 billion euros at end 2015

ACCELERATION OF PERFORM 2020

  • Launch of immediate cost-saving measures
  • Acceleration of all cost reduction initiatives
  • Adjustment of Winter 2015-16 capacity
The Board of Directors of Air France-KLM, chaired by Alexandre de Juniac, met on 23 July 2015 to approve the accounts for the First Half of the Financial Year 2015.  "In the First Half 2015, Air France-KLM’s results were characterized by exceptional volatility in exchange rates and the fuel price, and by on-going pressure on unit revenues. All the Perform 2020 cost-saving initiatives were identified and quantified, and productivity agreements have already been signed at KLM. Transavia is pursuing its rapid development and will serve 47 cities on departure from Paris this summer. The maintenance business is posting strong growth.

The lack of results improvement leads us to implement immediate additional adaptation measures including, in particular, the closure of heavily loss-making routes, the downward revision in capacity for the forthcoming Winter season, together with an acceleration and an increase in the magnitude of our cost-saving initiatives. Following the agreement signed by KLM with its unions, the rapid conclusion of the negotiations with the Air France unions is key to re-launching the results turnaround. At this pivotal moment in Air France-KLM’s history, the Board and I know that we can count on the spirit of responsibility and commitment shared by all the Group’s staff to enable us to return to a growth path", - said Alexandre de Juniac, Chairman and CEO of Air France-KLM.