1
18 February 2021
FULL YEAR 2020
Operating Result at -4.5 billion euros
Covid-19 crisis having an unprecedented impact on Air France-KLM
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, over-
hedging 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
OUTLOOK
After a positive Christmas traffic in Domestic France and to the Caribbean and Indian Ocean,
travel restrictions were tightened in France, the Netherlands and worldwide, having a negative
impact on the traffic of the Group in the first quarter of 2021.
Due to the lockdown and travel restrictions still in place, the Group anticipates a challenging
First quarter 2021, with a lower EBITDA compared to the Fourth Quarter 2020.
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, on both
the Long Haul and Medium Haul network.
In this context the Group expects capacity in Available Seat kilometers circa index 40 for Air
France-KLM in the First quarter 2021 compared to 2019 for the Network passenger activity
due to negative environment.
The Group will progressively ramp up capacity towards summer 2021 and expects recovery in
the second and third quarter 2021 thanks to the vaccine deployment.
The Air France-KLM Group continues to work on quasi-equity and equity solutions in order to
strengthen balance sheet and expects progress in the following weeks. Discussions are
continuing with the European Comission within the “Temporary Framework” (TF).
Air France-KLM Group
Fourth quarter
Full Year
2020
Change
2020
Change¹
Passengers (thousands)
5,941
-75.9%
34,065
-67.3%
Passenger Unit revenue per ASK
1
(€ cts)
3.06
-52.6%
4.56
-31.2%
Operating result (€m)
-1,134
-1,228
-4,548
-5,689
Net income – Group part (€m)
-1,000
-1,155
-7,078
-7,368
Adj. operating free cash flow (€m)
-2,115
-1,610
-5,661
-5,276
Net debt at end of period (€m)
11,049
4,902
1
Passenger unit revenue is the aggregate of Passenger network and Transavia unit revenues, change at constant currency
2
The Board of Directors of Air France-KLM, chaired by Ms. Anne-Marie Couderc, met on 17 February
2021 to approve the financial statements for the Full Year 2020. Group CEO Mr. Benjamin Smith said:
“2020 tested the Air France-KLM Group with the most severe crisis ever experienced by the air
transport industry. I would like to thank our employees for their dedication and tremendous flexibility
during this period, which has allowed us to remain resilient despite an unprecedented drop in traffic.
Since the very beginning of the crisis, we set the highest standards of health and safety for our
customers and our employees, all while being able to seize Cargo opportunities and continuously
adapting our flight schedules in the face of ever-changing travel restrictions.
Thanks to the French- and Dutch state support and this agile way of working, we were able to
drastically reduce our costs, protect our cash, and continue the execution of major transformation
plans within our airlines, involving the efforts of all employees. In the coming months, we will continue
to strengthen the Group's core, improving its economic and environmental performance, so that Air
France-KLM will be in a position to fully leverage all opportunities when the industry starts to recover.
We begin 2021 looking forward that this year will see an upturn in traffic as soon as vaccination is
deployed on a large scale and borders once again reopen. Our customers look forward to being able
to travel again and their attachment to Air France, KLM, and Transavia has grown stronger during this
crisis.”
Business review
Network: In this very challenging 2020, Air France and KLM actively managed capacity with
most of the flight incrementally cash positive thanks to the Cargo activity
Network
Fourth quarter
Full Year
2020
Change
Change
constant
currency
2020
Change
Change
constant
currency
Total revenues (€m)
1,986
-65.5%
-64.9%
9,206
-60.4%
-60.3%
Scheduled revenues (€m)
1,818
-66.9%
-66.2%
8,571
-61.5%
-61.3%
Operating result (€m)
-881
-917
-914
-3,722
-4,471
-4,477
Full Year 2020 revenues decreased by 60.3% at constant currency to 9.2 billion euros. The operating
result amounted to -3.7 billion euros, a 4.5 billion euros decrease at constant currency compared to last
year. Measures were strengthened to preserve cash, including reduction of investments, cost savings
measures, negotiations with supplier on payment terms, staff reductions and wage support measures.
Passenger network: Ensure health safety on board and adapt network to cope with border
restrictions
Fourth quarter
Full Year
Passenger network
2020
Change
Change
constant
currency
2020
Change
Change
constant
currency
Passengers (thousands)
5,211
-75.6%
28,883
-67.0%
Capacity (ASK m)
34,900
-53.3%
138,168
-53.9%
Traffic (RPK m)
14,351
-77.9%
81,212
-69.2%
Load factor
41.1%
-45.8 pt
58.8%
-29.2 pt
Total passenger revenues (€m)
1,126
-78.3%
-78.0%
6,638
-68.6%
-68.4%
Scheduled passenger revenues (€m)
1,054
-79.0%
-78.6%
6,325
-69.0%
-68.8%
Unit revenue per ASK (€ cts)
3.02
-55.0%
-54.1%
4.58
-32.8%
-32.4%
The passenger network activity in the fourth quarter was, as anticipated, strongly reduced at 46% of last
year’s level. The tightening of travel restrictions, border closures and absence of corporate travel
delayed the expected traffic recovery. October and November were weak in term of traffic compared to
a stronger December, thanks to Christmas traffic increase in Domestic France and to Caribbean and
Indian Ocean.
3
2020 was an unprecedented year for the airline industry and Air France-KLM with: a good start in
January and February; a worldwide lockdown with repatriation flights during the second quarter followed
by hopes of a resumption of traffic during summer and a last quarter marked by increased travel
restrictions and some traffic during Christmas.
The Full year 2020 capacity was severely impacted by the Covid-19 crisis, at 46% of last year’s level
while the traffic decreased by 69%, mainly due to travel restrictions in place.
The Group had an agile capacity management and was able to ramp-up capacity during summer and
Christmas periods with resilient performance on low border restrictions routes (French Domestic,
Caribbean & Indian Ocean and Africa & Middle East). The balanced network of Air France and KLM
spread over the different regions of the world was a strong asset during the Covid-19 crisis, which partly
explained why the Group operates more capacity than competitors. The strategy was to operate
incremental cash positive flights and several routes were taking advantage of the strong worldwide cargo
demand thanks to industry under capacity.
During 2020, the Group accelerated the phase-out of different aircraft to cope with the lower demand in
the following years (Airbus 380, Airbus 340, Boeing 747, Canadair Jet and Embraer 145).
Air France-KLM Group continues to implement the highest safety standards for its customers and
employees to counter virus transmission risks. Both Air France and KLM achieved 4 stars in the Skytrax
“Covid-19 Airline Safety Rating”, one of highest score.
Cargo: Strong steering unit revenue in a context of industry under capacity
Fourth quarter
Full Year
Cargo business
2020
Change
Change
constant
currency
2020
Change
Change
constant
currency
Tons (thousands)
268
-6.8%
880
-20.8%
Capacity (ATK m)
2,812
-24.3%
10,120
-30.7%
Traffic (RTK m)
2,082
-5.7%
6,829
-19.4%
Load factor
74.0%
+14.6 pt
67.5%
+9.5 pt
Total Cargo revenues (€m)
860
+53.9%
+58.2%
2,568
+19.3%
+19.9%
Scheduled cargo revenues (€m)
764
+59.4%
+63.6%
2,246
+21.9%
+22.5%
Unit revenue per ATK (€ cts )
27.18
+110.5%
+116.1%
22.20
+75.9%
+76.8%
Global air cargo capacity was at the end of the Fourth quarter 2020 approximately 20% lower than 2019.
Tightening of supply and demand levels increased yields by significant amount over the past months.
December was the eighth 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 116.1%
in the Fourth quarter 2020.
The 2020 Cargo capacity of the Group has been down 30.7%, 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 yield and load factors were
strongly up, resulting in a unit revenue increase of 76.8% at constant currency, thanks to the gap
between industry capacity and demand. The Group benefited from a full freighter fleet of six aircraft and
a passenger long-haul fleet well suited for the cargo activity (Boeing 777, Boeing 787, and Airbus 350).
On the demand side, world-wide air freight volumes are down due to Covid-19 crisis but are expecting
to recover consistently with trade growth and industrial production. The supply-demand gap of the past
months is foreseen to narrow once industry capacity supply will increase which depends on the
passenger traffic recovery. Air France-KLM is ready to transport the Covid-19 vaccines worldwide and
has already delivered them to several destinations successfully. The volumes will gradually increase
during the first half of 2021.
4
Transavia: Well positioned for the recovery with a first step on the French domestic market
Fourth quarter
Full Year
Transavia
2020
Change
2020
Change
Passengers (thousands)
730
-77.7%
5,182
-68.7%
Capacity (ASK m)
2,134
-67.9%
13,312
-59.5%
Traffic (RPK m)
1,323
-78.2%
9,828
-67.6%
Load factor
62.0%
-29.3 pt
73.8%
-18.4 pt
Total passenger revenues (€m)
85
-74.8%
606
-65.2%
Unit revenue per ASK (€ cts)
3.67
-26.1%
4.41
-17.4%
Unit cost per ASK (€ cts)
8.01
+48.8%
6.65
+34.7%
Operating result (€m)
-93
-65
-299
-430
The Fourth quarter operating result ended -65 million euros lower compared to last year at an
operational loss of -93 million euros, as a result of the Covid-19 crisis and tightened border restrictions
in Europe and North Africa.
Full year 2020 activity levels were close to 40% of last year’s level, with a unit revenue down -17.4%
compared to 2019. Load factors at 73.8% were impacted by travel restrictions imposed.
During 2020, Transavia operated more than 150 repatriation flights from Europe and North Africa
enabling 28,000 passengers to be brought back before temporarily immobilizing its entire fleet. In June,
Transavia gradually resumed flights by constantly adapting operations to Covid-19 rules and has
enabled many travelers to enjoy leisure destination during summer. However, the resurgence of Covid-
19 and border restrictions have slowed down Transavia in the traffic recovery during the fourth quarter
2020. Strict cash preservation measures are still in place including reduction of investments, cost
savings measures, negotiations with supplier on payment terms and wage support measures.
Several CLA agreements have been reached in both Transavia Netherlands and France about labor
conditions and restructuring measures. Transavia France started French domestic operations during
the fourth quarter 2020 from Paris Orly and regional airports.
Transavia plan to grow is still valid, well positioned to capture the leisure traffic recovery foreseen in the
coming months and a major opportunity for the Group’s competitiveness gain.
Maintenance: Activity severely impacted by the decrease of airline’s activities
Fourth quarter
Full Year
Maintenance
2020
Change
Change
constant
currency
2020
Change
Change
constant
currency
Total revenues (€m)
603
-48.2%
2,858
-38.1%
Third-party revenues (€m)
286
-44.5%
-40.5%
1,248
-41.6%
-41.4%
Operating result (€m)
-177
-267
-257
-543
-803
-798
Operating margin (%)
-29.4%
-37.1 pt
-36.5 pt
-19.0%
-24.6 pt
-24.5 pt
The Fourth quarter operating result stood at -177 million euros, a decrease of 267 million euros, highly
impacted by the Covid-19 crisis. Maintenance continued to sign new contracts in the fourth quarter and
are included in the order book at year end.
During 2020, external revenues declined by 41.6% and the decreased in Air France-KLM Group airlines
activities impacted the total revenues. Operating costs have been reduced by a lower maintenance
activity level, staff reductions, wage support measures for employees and other initiated cost savings
measures. Operating results stood at -543 million euros, down 803 million euros compared to last year.
Covid-19 generated around 320 million euros exceptional items, of which 120 million of doubtful
receivable, 110 million euros provision on asset value and 90 million euros regarding contracts review.
5
The Maintenance order book is assessed to 9.1 billion dollars at 31 December 2020, a decrease of 2.4
billion dollars compared to 31 December 2019, explained by the Covid-19 crisis. The Maintenance
business is carefully managing agreements with clients on payment terms.
Air France-KLM maintenance activity is well positioned on new generation aircraft maintenance and
foresees solid opportunities for the future.
Air France-KLM Group: Financial metrics severely impacted by Covid-19, a decrease of €5.8bn
in EBITDA mitigated by cost control
Fourth quarter
Full Year
2020
Change
Change
constant
currency
2020
Change
Change
constant
currency
Capacity (ASK m)
37,034
-54.5%
151,480
-54.4%
Traffic (RPK m)
15,673
-77.9%
91,040
-69.0%
Passenger unit revenue per ASK (€
cts)
3.06
-53.5%
-52.6%
4.56
-31.6%
-31.2%
Group unit revenue per ASK (€ cts)
5.12
-28.5%
-27.1%
6.05
-16.3%
-15.8%
Group unit cost per ASK (€ cts) at
constant fuel
8.18
+16.1%
+25.9%
9.05
+31.6%
+36.9%
Revenues (€m)
2,363
-64.3%
-63.5%
11,088
-59.2%
-59.1%
EBITDA (€m)
-407
-1,272
-1,260
-1,689
-5,816
-5,814
Operating result (€m)
-1,134
-1,228
-1,215
-4,548
-5,689
-5,685
Operating margin (%)
-48.0%
-49.4 pt
-49.2 pt
-41.0%
-45.2 pt
-45.2 pt
Net income - Group part (€m)
-1,000
-1,155
-7,078
-7,368
In Full Year 2020, the Air France-KLM Group posted an operating result of -4.5 billion euros, down by
5.7 billion euros compared to last year.
Net income amounted to -7.1 billion euros in the Full Year 2020, a decrease of 7.4 billion euros
compared to last year, of which exceptional accounting items due to Covid-19:
Restructuring costs provision of -822 million euros with Departure Plan at Air France Group and
KLM Group
Fuel over hedge has been recycled to “Other financial income and expenses” for -595 million
euros
Fleet impairment of -672 million, mainly caused by -553 million euros on Airbus A380
Since the beginning of the crisis, Air France, KLM and Transavia proceeded 2.3 billion euros of refunds
to customers, with 0.8 billion euros during the fourth quarter 2020.
The Full year 2020 unit cost increased by 36.9%, primarily caused by Covid-19 related capacity
reductions
Group net employee costs were down 35% in 2020 compared to last year, supported by staff reductions,
partial activity implementation at Air France and compensated staff cost by the NOW mechanism at
KLM and no profit sharing provisions to be made at both airlines. The average number of FTEs (Full
Time Equivalent) stood at 76,900 in December 2020, down 8,700 compared to December 2019.
6
Net debt up 4.9 billion euros
Fourth quarter
Full Year
In € million
2020
Change
2020
Change
Cash flow before change in WCR and Voluntary Departure
Plans, continuing operations (€m)
-661
-1,440
-2,586
-6,370
Cash out related to Voluntary Departure Plans (€m)
-253
-244
-405
-381
Change in Working Capital Requirement (WCR) (€m)
-502
-547
165
+30
Net cash flow from operating activities (€m)
-1,416
-2,231
-2,826
-6,721
Net investments* (€m)
-421
+639
-1,895
+1,377
Operating free cash flow (€m)
-1,837
-1,592
-4,721
-5,344
Repayment of lease debt
-278
-18
-940
+68
Adjusted operating free cash flow**
-2,115
-1,610
-5,661
-5,276
* 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 Full Year 2020 of -5.7 billion euros, a
decrease of 5.3 billion euros compared to last year, mainly explained by a net cash flow from operating
activities decline of 6.7 billion euros, partly offset by a reduction in net investments of 1.4 billion euros.
Strong focus on working capital management in all businesses has led to a positive change of +165
million euros in 2020, thanks to tax & social charges deferrals, negotiations with suppliers and vouchers
policy which compensated the refunds process and the low inflow of bookings.
In € million
31 Dec 2020
31 Dec 2019
Net debt
11,049
6,147
EBITDA trailing 12 months
-1,689
4,128
Net debt/EBITDA trailing 12 months
na
1.5 x
Both airlines results negatively impacted in 2020
Fourth quarter
Full Year
2020
Change
2020
Change
Air France Group Operating result (€m)
-989
-970
-3,389
-3,669
Operating margin (%)
-73.3%
-72.8 pt
-52.8%
-54.5 pt
KLM Group Operating result (€m)
-152
-271
-1,154
-2,007
Operating margin (%)
-13.4%
-17.8 pt
-22.5%
-30.2 pt
7
OUTLOOK
After a positive Christmas traffic in Domestic France and to the Caribbean and Indian Ocean,
travel restrictions were tightened in France, the Netherlands and worldwide, having a negative
impact on the traffic of the Group in the first quarter of 2021.
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, on both
the Long Haul and Medium Haul network.
The Group will progressively ramp up capacity towards summer 2021 and expects recovery in
the second and third quarter 2021 thanks to the vaccine deployment.
For the time being, KLM is not able to execute passenger flights between the Netherlands and
South Africa, South America and the UK while France banned all non-essential travel from and
to France. Instead of gradually increasing capacity during the First Quarter, the capacity had
to be reduced.
In this context the Group expects:
Capacity in Available Seat kilometers circa index 40 for Air France-KLM in the First
quarter 2021 compared to 2019 for the Network passenger activity due to negative
environment.
Given the under capacity in the Cargo industry, strong steering options for the First quarter
2021 remain available, although future performance is pending passenger industry recovery.
Due to the lockdown and travel restrictions still in place, The Group anticipates a challenging
First quarter 2021, with a lower EBITDA compared to the Fourth Quarter 2020.
At 31 December 2020, the Group has a solid 9.8 billion euros of liquidity and credit lines at
disposal.
The Group foresees liquidity requirements in 2021 with:
Negative First quarter working capital requirement influenced by deferred payments
and substantial low level of new bookings
Capex spending before fleet financings at 2.0 billion euros in 2021
Restructuring cash out at 0.5 billion euros in 2021
Guidance : Air France-KLM Group medium term operating margin objective unchanged
but delayed
The Group accelerates its transformation initiatives and confirms its medium-term financial
ambition. The Group continues to balance its medium-term focus on managing liquidity with
the long-term focus on achieving increased competitiveness. To do this, the Group continues
to optimize, fleet, labour, network and costs.
The Covid-19 crisis is showing an unprecedented impact on traffic. In order to anticipate on
this decline in traffic. The Group estimates the number of aircraft in 2022 to be 7% below the
number of aircraft in 2019. The Group expects capacity in ASK back to the 2019 levels only in
2024.
By the end of 2020 the Group managed to decrease the number of FTE already by 10%
compared to December 2019. In the coming years the number of FTE will further decrease by
8
circa 6,000 FTE. The reduction in FTE, amongst other key transformation initiatives, will drive
the unit cost down 8% to 10% once capacity is back at 2019 level.
The Group’s medium-term financial ambition is maintained with an Adjusted Operating Free
Cash Flow expected to be positive again in 2023. The Operating Margin mid-cycle objective is
still estimated at 7% to 8%.
******
The audit procedures for the consolidated accounts have taken place. Despite uncertainties, the Board
of Directors considered appropriate to prepare the financial statements for the year ended December
31, 2020 on the basis of the going concern principle.
For further information, please refer to Note 2 of the consolidated financial statements.
The certification report will be published following the completion of the procedures necessary for the
filing of the Universal Registration Document.
The results presentation is available at www.airfranceklm.com on 18 February 2021 from 7:15 am
CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Gagey (CFO) will be held on 18 February 2021
at 08.30 CET.
To connect to the conference call, please dial:
France: Local +33 (0)1 76 77 22 57
Netherlands: Local +31 (0)20 703 8261
UK: Local +44 (0)330 336 9411
US: Local +1 720-543-0206
Confirmation code: 7443591
Investor Relations Press
Olivier Gall Antoine Madre
+33 1 49 89 52 59 +33 1 49 89 52 60 +33 1 41 56 56 00
olgall@airfranceklm.com anmadre@airfranceklm.com
9
Income Statement
Fourth quarter
Full Year
€m
2020
2019
Change
2020
2019
Change
Sales
2,363
6,616
-64.3%
11,088
27,188
-59.2%
Other revenues
0
1
-100.0%
0
1
-100.0%
Revenues
2,363
6,617
-64.3%
11,088
27,189
-59.2%
Aircraft fuel
-506
-1,393
-63.7%
-2,392
-5,511
-56.6%
Chartering costs
-72
-118
-39.0%
-253
-525
-51.8%
Landing fees and en route charges
-226
-462
-51.1%
-969
-1,933
-49.9%
Catering
-59
-205
-71.2%
-294
-822
-64.2%
Handling charges and other operating costs
-188
-422
-55.5%
-833
-1,715
-51.4%
Aircraft maintenance costs
-375
-708
-47.0%
-1,618
-2,628
-38.5%
Commercial and distribution costs
-55
-246
-77.6%
-346
-1,029
-66.4%
Other external expenses
-342
-437
-21.7%
-1,275
-1,730
-26.3%
Salaries and related costs
-1,076
-2,108
-49.0%
-5,300
-8,139
-34.9%
Taxes other than income taxes
-29
-35
-17.1%
-137
-154
-11.0%
Other income and expenses
158
382
-58.6%
640
1,125
-43.1%
EBITDA
-407
865
nm
-1,689
4,128
nm
Amortization, depreciation and provisions
-727
-771
-5.7%
-2,859
-2,987
-4.3%
Income from current operations
-1,134
94
nm
-4,548
1,141
nm
Sales of aircraft equipment
6
-2
nm
37
22
+68.2%
Other non-current income and expenses
-38
-19
+99.9%
-1,489
-153
+873%
Income from operating activities
-1,166
73
nm
-6,000
1,010
nm
Cost of financial debt
-146
-110
+32.7%
-496
-442
+12.2%
Income from cash and cash equivalent
1
9
-88.9%
19
49
-61.2%
Net cost of financial debt
-145
-101
+43.6%
-477
-393
+21.4%
Other financial income and expenses
171
120
+42.5%
-451
-271
+66.4%
Income before tax
-1,140
92
nm
-6,928
346
nm
Income taxes
145
56
+158.9%
-97
-76
+27.6%
Net income of consolidated companies
-995
148
nm
-7,025
270
nm
Share of profits (losses) of associates
-6
8
nm
-58
23
nm
Net income for the period
-1,001
156
nm
-7,083
293
nm
Minority interest
-1
1
nm
-5
3
nm
Net income for the period – Group part
-1,000
155
nm
-7,078
290
nm
2019 results restated (with a similar impact in both years) for limited life parts componentization accounting
change.
10
Consolidated Balance Sheet
Assets
31 Dec 2020
31 Dec 2019
In million euros
Goodwill
215
217
Intangible assets
1,230
1,305
Flight equipment
11,031
11,334
Other property, plant and equipment
1,548
1,580
Right-of-use assets
4,678
5,173
Investments in equity associates
230
307
Derivatives assets long term
92
238
Pension assets
211
420
Other financial assets
795
1,096
Deferred tax assets
282
523
Other non-current assets
4
3
Total non-current assets
20,316
22,196
Other short-term financial assets
607
800
Derivatives assets short term
160
258
Inventories
543
737
Trade receivables
1,248
2,164
Other current assets
914
865
Cash and cash equivalents
6,423
3,715
Total current assets
9,895
8,539
Total assets
30,211
30,735
Liabilities and equity
31 Dec 2020
31 Dec 2019
In million euros
Issued capital
429
429
Additional paid-in capital
4,139
4,139
Treasury shares
-25
-67
Perpetual
0
403
Reserves and retained earnings
-9,970
-2,620
Equity attributable to equity holders of Air France-KLM
-5,427
2,284
Non-controlling interests
9
15
Total Equity
-5,418
2,299
Pension provisions
2,147
2,253
Other provisions
3,670
3,750
Long-term debt
14,171
6,271
Lease financial debt
2,425
3,149
Derivatives liabilities long term
122
107
Deferred tax liabilities
22
142
Other non-current liabilities
1,294
115
Total non-current liabilities
23,851
15,787
Provisions
1,337
714
Current portion of long-term debt
1,318
842
Current portion of lease financial debt
839
971
Derivatives liabilities short term
363
154
Trade payables
1,435
2,379
Deferred revenue on ticket sales
2,394
3,289
Frequent flyer programs
916
848
Other current liabilities
3,175
3,448
Bank overdrafts
1
4
Total current liabilities
11,778
12,649
Total equity and liabilities
30,211
30,735
11
Statement of Consolidated Cash Flows from 1
st
Jan until 31 december 2020
€m
31 Dec 2020
31 Dec 2019
Net income from continuing operations
-7,083
293
Amortization, depreciation and operating provisions
2,859
2,987
Financial provisions
183
217
Loss (gain) on disposals of tangible and intangible assets
-50
-43
Loss (gain)on disposals of subsidiaries and associates
1
0
Derivatives – non monetary result
-27
30
Unrealized foreign exchange gains and losses, net
-290
82
Impairment
680
0
Other non-monetary items
511
238
Share of (profits) losses of associates
58
-23
Deferred taxes
167
-21
Financial Capacity
-2,991
3,760
(Increase) / decrease in inventories
138
-93
(Increase) / decrease in trade receivables
760
61
Increase / (decrease) in trade payables
-898
-133
Increase / (decrease) in advanced ticket sales
-837
160
Change in other receivables and payables
1,002
140
Change in working capital requirements
165
135
Net cash flow from operating activities
-2,826
3,895
Purchase of property, plant and equipment and intangible assets
-2,099
-3,372
Proceeds on disposal of property, plant and equipment and intangible
assets
204
100
Proceeds on disposal of subsidiaries, of shares in non-controlled entities
357
13
Acquisition of subsidiaries, of shares in non-controlled entities
-1
-1
Dividends received
0
14
Decrease (increase) in net investments, more than 3 months
-44
-72
Net cash flow used in investing activities
-1,583
-3,318
Increase of equity due to new convertible bond
0
54
Perpetual (including premium)
0
0
Issuance of debt
11,437
1,617
Repayment on financial debt
-3,389
-1,156
Payments on lease debt
-940
-1,008
Decrease (increase ) in loans, net
39
72
Dividends and coupons on perpetual paid
0
-26
Net cash flow from financing activities
7,147
-447
Effect of exchange rate on cash and cash equivalents and bank overdrafts
-27
1
Change in cash and cash equivalents and bank overdrafts
2,711
131
Cash and cash equivalents and bank overdrafts at beginning of period
3,711
3,580
Cash and cash equivalents and bank overdrafts at end of period
6,422
3,711
Change in treasury of discontinued operations
0
0
12
Key Performance Indicators
Restated net result, group share
Fourth quarter
Full Year
In million euros
2020
2019
2020
2019
Net income/(loss), Group share
-1,000
155
-7,078
290
Unrealized foreign exchange gains and losses, net
-212
-141
-290
82
Change in fair value of financial assets and liabilities (derivatives)
-97
-20
-27
-29
Non-current income and expenses
31
22
1,452
131
Tax impact on gross adjustments net result
78
-42
-323
-55
Restated net income/(loss), group part
-1,200
-27
-6,266
419
Coupons on perpetual
0
-4
0
-17
Restated net income/(loss), group share including coupons on
perpetual (used to calculate earnings per share)
-1,200
-31
-6,266
402
Restated net income/(loss) per share (in €)
-2,81
0,14
-14,66
0,95
Return on capital employed (ROCE)
1
In million euros
31
Dec
2020
30
Sep
2020
30
June
2020
31
Mar
2020
31
Dec
2019
30
Sep
2019
30
June
2019
31
Mar
2019
Goodwill and intangible assets
1,445
1,470
1,500
1,564
1,522
1,481
1,465
1,485
Flight equipment
11,031
11,009
10,919
11,465
11,334
10,829
10,747
10,456
Other property, plant and equipment
1,548
1,535
1,551
1,579
1,580
1,554
1,530
1,504
Right of use assets
4,678
4,789
4,938
5,119
5,173
5,300
5,470
5,453
Investments in equity associates
230
224
267
299
307
310
305
306
Financial assets excluding marketable
securities and financial deposits
146
135
133
142
140
131
125
127
Provisions, excluding pension, cargo
litigation and restructuring
-3,922
-4,001
-4,130
-4,190
-4,058
-4,101
-3,888
-3,907
WCR, excluding market value of derivatives
-6,505
-6,894
-6,779
-6,650
-6,310
-6,285
-6,957
-6,938
Capital employed
8,651
8,267
8,399
9,328
9,688
9,219
8,797
8,486
Average capital employed (A)
8,661
9,048
Adjusted results from current operations
-4,548
1,141
- Dividends received
0
-2
- Share of profits (losses) of associates
-58
23
- Normative income tax
1,394
-318
Adjusted result from current operations
after tax (B)
-3,212
844
ROCE, trailing 12 months (B/A)
-37.1%
9.3%
1
The definition of ROCE has been revised to take into account the seasonal effects of the activity.
13
Net debt
Balance sheet at
€m
31 Dec 2020
31 Dec 2019
Financial debt
15,388
6,886
Repo on triple A bonds
-84
0
Lease debt
3,184
4,029
Currency hedge on financial debt
27
4
Accrued interest
-107
-62
Gross financial debt (A)
18,408
10,857
Cash and cash equivalents
6,423
3,715
Marketable securities
193
111
Cash securities
309
300
Bonds AAA
518
585
Bank overdrafts
-1
-4
Others
1
3
Repo on triple A bonds
-84
0
Net cash (B)
7,359
4,710
Net debt (A) – (B)
11,049
6,147
Adjusted operating free cash flow
Fourth quarter
Full Year
€m
2020
2019
2020
2019
Net cash flow from operating activities, continued operations
-1,416
815
-2,826
3,895
Investment in property, plant, equipment and intangible assets
-444
-1,077
-2,099
-3,372
Proceeds on disposal of property, plant, equipment and intangible
assets
23
17
204
100
Operating free cash flow
-1,837
-245
-4,721
623
Payments on lease debt
-278
-260
-940
-1,008
Adjusted operating free cash flow
-2,115
-505
-5,661
-385
14
Operating cash burn
Full Year
2020
2019
EBITDA
- 1,689
4,128
Provisions (CO2 and other)
-22
18
Correction of spare parts inventory
4
-1
Addition to pension provisions
306
341
Reversal to pension provisions (cash-out)
-246
-256
Payment linked with shares
0
1
Sales of tangible and intangible assets (excluding aeronauticals)
41
46
Dividend received
0
-2
Income from operation activities - cash impact
-1,605
4,275
Restructuring costs
-405
-24
Other non-current income and expenses
-1
1
Cost of financial debt
-446
-422
Financial income
-2
23
Realized foreign exchange gain/loss
7
-1
Termination of trading hedges - cash
-589
4
Current income tax
70
-97
Other financial charges & expenses - cash
-22
-7
Other elements
3
8
Financial capacity
-2,991
3,760
15
Unit cost: net cost per ASK
Fourth quarter
Full Year
2020
2019
2020
2019
Revenues (in €m)
2,363
6,617
11,088
27,189
Income/(loss) from current operations (in €m) -/-
1,134
-94
4,548
-1,141
Total operating expense (in €m)
3,497
6,523
15,637
26,048
Passenger network business – other revenues (in €m)
-72
-178
-314
-711
Cargo network business – other revenues (in €m)
-96
-79
-322
-310
Third-party revenues in the maintenance business (in €m)
-286
-515
-1,248
-2,138
Transavia - other revenues (in €m)
-7
-7
-20
10
Third-party revenues of other businesses (in €m)
-6
-7
-28
-34
Net cost (in €m)
3,031
5,736
13,706
22,864
Capacity produced, reported in ASK*
37,034
81,363
151,480
332,473
Net cost per ASK (in € cents per ASK)
8.18
7.05
9.05
6.88
Gross change
16.1%
31.6%
Currency effect on net costs (in €m)
-102
-121
Change at constant currency
18.2%
32.3%
Fuel price effect (in €m) adjusted for 2019 capacity
-342
-771
Net cost per ASK on a constant currency and fuel price basis
(in € cents per ASK)
8.18
6.50
9.05
6.61
Change at constant currency and fuel price basis
+25.9%
+36.9%
* The capacity produced by the transportation activities is combined by adding the capacity of the Passenger network (in ASK)
to that of Transavia (in ASK).
Group results
Air France Group
Fourth quarter
Full Year
2020
Change
2020
Change
Revenue (in €m)
1,349
-66.7%
6,415
-61.3%
EBITDA (in €m)
-514
-980
-1,609
-3,781
Operating result (en m€)
-988
-970
-3,389
-3,669
Operating margin (%)
-73.3%
-72.8 pt
-52.8%
-54.5 pt
Operating cash flow before WCR and restructuring cash out (in €m)
-669
-1,012
-2,188
-2,188
Operating cash flow (before WCR and restructuring) margin
-49.6%
-58.0 pt
-34.1%
-34.1 pt
KLM Group
Fourth quarter
Full Year
2020
Change
2020
Change
Revenue (in €m)
1,136
-57.8%
5,120
-53.8%
EBITDA (in €m)
101
-304
-75
-2,017
Operating result (en m€)
-152
-271
-1,154
-2,007
Operating margin (%)
-13.4%
-17.8 pt
-22.5%
-30.2 pt
Operating cash flow before WCR and restructuring cash out (in €m)
17
-416
-340
-340
Operating cash flow (before WCR and restructuring) margin
1.5%
-14.6 pt
-6.6%
-6.6 pt
NB: Sum of individual airline results does not add up to Air France-KLM total due to intercompany eliminations at Group level
16
Group fleet at 31 December 2020
Aircraft type
AF
(incl.
HOP)
KL
(incl.
KLC &
MP)
Transavia
Owned
Finance
lease
Operating
lease
Total
In
operation
Change /
31/12/19
B747-400
2
2
2
-8
B777-300
43
14
18
17
22
57
57
B777-200
25
15
26
14
40
40
B787-9
10
13
6
5
12
23
23
1
B787-10
6
4
2
6
5
1
A380-800
9
2
3
4
9
-10
A350-900
6
1
5
6
6
3
A340-300
1
1
1
-4
A330-300
5
5
5
5
A330-200
15
8
11
12
23
21
-2
Total Long-Haul
109
63
0
71
32
69
172
157
-19
B737-900
5
5
5
5
B737-800
31
75
29
10
67
106
106
2
B737-700
16
5
2
5
14
21
20
-3
A321
20
11
9
20
20
A320
44
4
4
36
44
44
1
A319
33
14
19
33
33
A318
18
8
10
18
18
Total Medium-
Haul
115
52
80
73
19
155
247
246
0
ATR72-600
-2
ATR72-500
ATR42-500
Canadair Jet 1000
14
14
14
14
Canadair Jet 700
11
11
11
9
-1
Embraer 190
17
32
11
10
28
49
49
2
Embraer 175
17
3
14
17
17
Embraer 170
15
10
5
15
15
Embraer 145
15
15
15
-13
Total Regional
72
49
0
64
24
33
121
104
-14
B747-400ERF
3
3
3
3
B747-400BCF
1
1
1
1
B777-F
2
2
2
2
Total Cargo
2
4
0
6
0
0
6
6
0
Total
298
168
80
214
75
257
546
513
-33
17
FOURTH QUARTER 2020 TRAFFIC
Passenger network activity*
Q4
Year to date
Total Passenger network*
2020
2019
Variation
2020
2019
Variation
Passengers carried (‘000s)
5,211
21,347
(75.6%)
28,883
87,634
(67.0%)
Revenue pax-kilometers (m RPK)
14,351
64,943
(77.9%)
81,212
263,509
(69.2%)
Available seat-kilometers (m ASK)
34,900
74,723
(53.3%)
138,167
299,624
(53.9%)
Load factor (%)
41.1%
86.9%
(45.8)
58.8%
87.9%
(29.2)
Long-haul
Passengers carried (‘000s)
1,591
7,031
(77.4%)
8,663
28,320
(69.4%)
Revenue pax-kilometers (m RPK)
11,239
53,128
(78.8%)
64,022
213,664
(70.0%)
Available seat-kilometers (m ASK)
29,749
60,648
(50.9%)
112,586
240,774
(53.2%)
Load factor (%)
37.8%
87.6%
(49.8)
56.9%
88.7%
(31.9)
North America
Passengers carried (‘000s)
306
2,074
(85.3%)
2,176
8,760
(75.2%)
Revenue pax-kilometers (m RPK)
2,260
14,751
(84.7%)
15,657
62,245
(74.8%)
Available seat-kilometers (m ASK)
7,972
16,561
(51.9%)
31,381
69,677
(55.0%)
Load factor (%)
28.3%
89.1%
(60.7)
49.9%
89.3%
(39.4)
Latin America
Passengers carried (‘000s)
183
935
(80.5%)
1,151
3,664
(68.6%)
Revenue pax-kilometers (m RPK)
1,766
8,780
(79.9%)
10,943
34,753
(68.5%)
Available seat-kilometers (m ASK)
4,848
10,160
(52.3%)
18,372
39,135
(53.1%)
Load factor (%)
36.4%
86.4%
(50.0)
59.6%
88.8%
(29.2)
Asia / Pacific
Passengers carried (‘000s)
173
1,689
(89.8%)
1,534
6,659
(77.0%)
Revenue pax-kilometers (m RPK)
1,491
14,610
(89.8%)
13,294
58,008
(77.1%)
Available seat-kilometers (m ASK)
6,326
16,390
(61.4%)
27,028
64,124
(57.9%)
Load factor (%)
23.6%
89.1%
(65.6)
49.2%
90.5%
(41.3)
Africa / Middle East
Passengers carried (‘000s)
534
1,395
(61.8%)
2,097
5,484
(61.8%)
Revenue pax-kilometers (m RPK)
2,815
8,040
(65.0%)
11,640
31,157
(62.6%)
Available seat-kilometers (m ASK)
5,728
9,595
(40.3%)
18,066
36,955
(51.1%)
Load factor (%)
49.1%
83.8%
(34.6)
64.4%
84.3%
(19.9)
Caribbean / Indian Ocean
Passengers carried (‘000s)
396
938
(57.7%)
1,705
3,753
(54.6%)
Revenue pax-kilometers (m RPK)
2,908
6,948
(58.1%)
12,488
27,500
(54.6%)
Available seat-kilometers (m ASK)
4,875
7,942
(38.6%)
17,739
30,883
(42.6%)
Load factor (%)
59.7%
87.5%
(27.8)
70.4%
89.0%
(18.6)
Short and Medium-haul
Passengers carried (‘000s)
3,620
14,316
(74.7%)
20,220
59,314
(65.9%)
Revenue pax-kilometers (m RPK)
3,111
11,815
(73.7%)
17,190
49,845
(65.5%)
Available seat-kilometers (m ASK)
5,151
14,074
(63.4%)
25,581
58,851
(56.5%)
Load factor (%)
60.4%
83.9%
(23.5)
67.2%
84.7%
(17.5)
* Air France and KLM
Transavia activity
Q4
Year to date
Transavia
2020
2019
Variation
2020
2019
Variation
Passengers carried (‘000s)
730
3,266
(77.7%)
5,182
16,581
(68.7%)
Revenue pax-kilometers (m RPK)
1,323
6,064
(78.2%)
9,828
30,303
(67.6%)
Available seat-kilometers (m ASK)
2,134
6,640
(67.9%)
13,312
32,867
(59.5%)
Load factor (%)
62.0%
91.3%
(29.3)
73.8%
92.2%
(18.4)
Total group passenger activity**
Q4
Year to date
Total group**
2020
2019
Variation
2020
2019
Variation
Passengers carried (‘000s)
5,941
24,614
(75.9%)
34,065
104,214
(67.3%)
Revenue pax-kilometers (m RPK)
15,673
71,007
(77.9%)
91,040
293,812
(69.0%)
Available seat-kilometers (m ASK)
37,034
81,363
(54.5%)
151,480
332,492
(54.4%)
Load factor (%)
42.3%
87.3%
(44.9)
60.1%
88.4%
(28.3)
** Air France, KLM and Transavia
Cargo activity
Q4
Year to date
Total Group
2020
2019
Variation
2020
2019
Variation
Revenue tonne-km (m RTK)
2,082
2,207
(5.7%)
6,829
8,467
(19.3%)
Available tonne-km (m ATK)
2,812
3,713
(24.3%)
10,121
14,609
(30.7%)
Load factor (%)
74.0%
59.4%
14.6
67.5%
58.0%
9.5
18
Air France activity
Q4
Year to date
Total Passenger network activity
2020
2019
Variation
2020
2019
Variation
Passengers carried (‘000s)
3,017
12,698
(76.2%)
17,652
52,542
(66.4%)
Revenue pax-kilometers (m RPK)
7,946
37,584
(78.9%)
47,339
154,033
(69.3%)
Available seat-kilometers (m ASK)
16,416
43,863
(62.6%)
73,325
177,172
(58.6%)
Load factor (%)
48.4%
85.7%
(37.3)
64.6%
86.9%
(22.4)
Long-haul
Passengers carried (‘000s)
956
4,122
(76.8%)
5,199
16,845
(69.1%)
Revenue pax-kilometers (m RPK)
6,284
30,571
(79.4%)
36,952
124,235
(70.3%)
Available seat-kilometers (m ASK)
13,763
35,338
(61.1%)
58,194
141,282
(58.8%)
Load factor (%)
45.7%
86.5%
(40.9)
63.5%
87.9%
(24.4)
Short and Medium-haul
Passengers carried (‘000s)
2,060
8,576
(76.0%)
12,453
35,697
(65.1%)
Revenue pax-kilometers (m RPK)
1,662
7,013
(76.3%)
10,387
29,798
(65.1%)
Available seat-kilometers (m ASK)
2,654
8,525
(68.9%)
15,131
35,890
(57.8%)
Load factor (%)
62.6%
82.3%
(19.6)
68.6%
83.0%
(14.4)
Q4
Year to date
Cargo activity
2020
2019
Variation
2020
2019
Variation
Revenue tonne-km (m RTK)
843
994
(15.3%)
2,644
3,789
(30.2%)
Available tonne-km (m ATK)
1,347
1,867
(27.9%)
4,737
7,356
(35.6%)
Load factor (%)
62.6%
53.3%
9.3
55.8%
51.5%
4.3
KLM activity
Q4
Year to date
Total Passenger network activity
2020
2019
Variation
2020
2019
Variation
Passengers carried (‘000s)
2,195
8,650
(74.6%)
11,231
35,092
(68.0%)
Revenue pax-kilometers (m RPK)
6,405
27,359
(76.6%)
33,873
109,476
(69.1%)
Available seat-kilometers (m ASK)
18,484
30,859
(40.1%)
64,842
122,452
(47.0%)
Load factor (%)
34.7%
88.7%
(54.0)
52.2%
89.4%
(37.2)
Long-haul
Passengers carried (‘000s)
635
2,909
(78.2%)
3,463
11,475
(69.8%)
Revenue pax-kilometers (m RPK)
4,956
22,557
(78.0%)
27,070
89,428
(69.7%)
Available seat-kilometers (m ASK)
15,986
25,310
(36.8%)
54,392
99,492
(45.3%)
Load factor (%)
31.0%
89.1%
(58.1)
49.8%
89.9%
(40.1)
Short and Medium-haul
Passengers carried (‘000s)
1,560
5,740
(72.8%)
7,767
23,617
(67.1%)
Revenue pax-kilometers (m RPK)
1,449
4,802
(69.8%)
6,803
20,047
(66.1%)
Available seat-kilometers (m ASK)
2,497
5,550
(55.0%)
10,450
22,960
(54.5%)
Load factor (%)
58.0%
86.5%
(28.5)
65.1%
87.3%
(22.2)
Q4
Year to date
Cargo activity
2020
2019
Variation
2020
2019
Variation
Revenue tonne-km (m RTK)
1,242
1,212
2.4%
4,184
4,678
(10.6%)
Available tonne-km (m ATK)
1,466
1,846
(20.6%)
5,385
7,253
(25.8%)
Load factor (%)
84.7%
65.6%
19.1
77.7%
64.5%
13.2
