Air France-KLM Group has reported a fourth quarter net profit of €496 million on a record Q4 increase in revenue of 47.3 percent to €7.13 billion. For the full year, the Group reported a net profit of €728 million on an 84.4 percent increase in revenue to €26.4 billion.
On Friday (February 17, 2023), Air France KLM Group reported their fourth quarter and full year financial results for the period ending December 31, 2022. The Group reported a fourth quarter net profit of €496 million on a year-over-year increase in revenue of 47.3 percent to €7.13 billion, a Q4 revenue record. For the full year, Air France-KLM reported a net profit of €728 million on a year-over-year increase in revenue of 84.4 percent to €26.4 billion. Compared to year-end 2021, the company’s net debt decreased by €1.9 billion. At December 31, 2022, the Group had gross financial liabilities totaling €14.34 billion and net cash of €8.0 billion, resulting in a year-end net debt total of €6.3 billion.
In Friday’s financial announcement, Air France-KLM’s Group CEO, Mr. Benjamin Smith, said,
“Throughout 2022, Air France-KLM once again demonstrated its resilience and agility in a context of unprecedented crises. In spite of the Omicron strain, the war in Ukraine, the inflationary situation and the operational disruptions at major international airports last summer, our Group and its airlines were able to successfully capture a strong demand for travel. On the financial side, we successfully undertook major operations to both restore our equity and consolidate our balance sheet while continuing to pay back the State aids we received. We secured landmark deals, including a strategic commercial partnership with CMA CGM Group which became our largest private shareholder.
“All the while, we moved forward with our transformation efforts at every level of our Group to emerge stronger and more efficient from the pandemic as a leader of sustainable aviation. Our fleet renewal efforts and our investments in SAF fully demonstrate our determination to play an active role in the decarbonization, not just of our own operations, but of the industry as a whole. We close out the year with a positive net income, having turned the page on Covid, and look to the future with confidence in our ability to address the challenges ahead. I would like to thank all the customers who chose to fly our airlines this year as well as all our employees, who made this year a success through their hard work and commitment to excellence.”
Air France-KLM Group’s fourth quarter revenue per available seat kilometer (RASK) increased 22.3 percent year-over-year to 8.88 euro cents, while costs per available seat mile (at constant fuel) increased 24.9 percent YoY to 8.69 euro cents. For the full year, the Group’s RASK increased 33.4 percent versus FY21 to 8.52 euro cents, while full year CASK (at constant fuel) increased YoY by 12.2 percent to 8.10 euro cents.
Speaking on KLM’s results in a separate announcement, KLM Royal Dutch Airlines’ CEO, Marjan Rintel, said,
“We have achieved these results thanks to the loyalty of our customers and the commitment of all colleagues. Our employees have made an enormous effort over the past year to offer customers quality under difficult circumstances. Major challenges remain, but the 2022 results give us reason to be cautiously optimistic. We are indebted to our customers and our dedicated employees for this. The Dutch are eager to continue flying and we see more people travelling worldwide. At the same time, we have uncertainties to reckon with, such as inflation, the price of fuel and scarcity in the labour market. We will continue to invest in customer products and services in the years ahead, with an emphasis on sustainability, but we can only do so if we exercise systematic cost control. This is how we can prepare KLM for the future and offer our customers memorable experiences.”
Also commenting on the carrier's Fourth Quarter and full year 2022 financial results, KLM’s Chief Financial Officer, Erik Swelheim, added,
“Once travel restrictions were lifted at the start of the year, the demand for air travel recovered quickly. This enabled KLM to repay the loans it received from the Dutch government as part of its support package in the second quarter of 2022. However, KLM has yet to repay EUR 1.4 billion in deferred wage tax. Because we welcomed more customers on board, passenger load factor rose to 84%. This bodes well for the year ahead, when we will be forced to contend with ongoing geopolitical tensions and other prohibitive factors. During the second quarter of this year, we expect to terminate the loans guaranteed by the Dutch state and replace them with a credit facility with our relationship banks.”
During 2022, Air France-KLM continued to introduce new generation aircraft to their fleet, while phasing out previous generation aircraft, resulting in a fleet reduction of 15 aircraft. The company’s long-haul fleet increased by one aircraft, while the medium-haul fleet was reduced by seven, and the regional fleet decreased by nine. The Group will continue their fleet renewal in 2023, receiving their first A320neo/A321neo aircraft.
Source(s): Air France-KLM Group, KLM Royal Dutch Airlines