Air France-KLM Group Reports Second Quarter 2023 Net Income of €604 Million
Air France-KLM has reported a second quarter net profit of €604 million on a year-over-year increase in revenue of 14.1 percent to €7.6 billion. At June 30, 2023, the Group had cash and cash equivalents totaling €6.2 billion.
On Friday (June 28, 2023) the Air France KLM Group reported their second quarter financial results for the period ending June 30, 2023. The Group reported a second quarter net profit of €604 million on a year-over-year increase in revenue of 14.1 percent to €7.6 billion. Air France-KLM's second quarter revenue per available seat kilometer (RASK) increased 5.4 percent versus Q2 2022 to €0.894, while cost per available seat mile (CASK) at constant fuel increased year-over-year by 6.4 percent to €0.08. At June 30, 2023, the company had cash and cash equivalents totaling €6.2 billion and total net debt of €4.9 billion, an improvement of €1.4 billion compared to year-end 2022.
In Friday’s announcement, Air France-KLM Group’s CEO, Benjamin Smith, said,
“We have again delivered a strong set of results during the Second Quarter of 2023. In spite of the inflationary context, we posted double-digit growth in our revenues and a record operating margin. The rollout of new award-winning products across our airlines continued unabated, which serves as a testament of the commitment of our employees, whom I would like to thank.
“We were also busy throughout the quarter, actively preparing for the summer. I am very glad to see that the situation at airports is much better, including at KLM’s hub at Amsterdam Schiphol Airport. This season notably serves as a test run for 2024, when France will host the Olympic and Paralympic Games, of which Air France is an official partner. Lastly, we have also continued delivering on our strategic roadmap, and secured ambitious partnerships in the field of sustainability, preparing for our medium to long-term future.”
Air France-KLM's Second Quarter and First half 2023 Financial Results - Courtesy Air France-KLM Group
Air France-KLM previously announced on July 27, 2023 that the Group has entered into exclusive discussions with Apollo Global management regarding the potential financing of €1.5 billion to a dedicated operating affiliate of the company. The new entity will hold the IP and most of the commercial partner contracts related to the Group’s Flying Blue loyalty program, and will become the exclusive issuer of miles. This potential financing would be accounted for under IFRS as equity, allowing Air France-KLM to further strengthen their balance sheet, aside from net profit generation and/or straight hybrid bonds.
During the first half (H1) of 2023, the Group added three Boeing 787-10 Dreamliners, Fifteen Boeing 737-800s, Nine Airbus A220-300s and two Embraer E195-E2s. Fleet retirements during the same period included three Boeing 737-700s, two Airbus A321s, four A319s and two CRJ-1000s. At June 30, 2023, the Group’s total fleet included 540 aircraft.
Source: Air France-KLM Group